Saturday, December 02, 2006
Industry will continue to prosper - Trends - health club industry
The health club industry has proved hardy during tough economic times. Since 1992, when the United States emerged from its most recent remission, the number of health clubs has increased by almost 40 percent, from 12,635 to 17,531 facilities (figure 1). Membership also grew by almost 60 percent, from 20.8 million to 32.8 million (Figure 2). Bill Howland, IHRSA's director of research, offers insight as to why the fitness industry has fared so well and its prospects for this year.
With economists saying we are in a recession, can we expect to see a decrease in the number of health club members?
No. That's what happened in the last recession (1989 to 1992). This time, I think membership will continue to grow, though not as vigorously as in the 1995 to 2000 period.
Why do you believe membership will grow?
Recent research by Roper Starch Worldwide has confirmed that the reasons people join clubs have changed. With the population aging, membership is perceived as more of a necessity than a luxury. Another reason is the unemployment rate. While it has increased over the past year to roughly 5 percent (in October 2001), it is still a long way from the 7.8 percent figure reached in the early '90s. At that point, membership did not decline; rather, it remained stable. When the unemployment rate was under 6.5 percent, membership grew (Figure 3). Overall, people may be nervous about the economy, but I think their response will be putting off trips to Bermuda or Vail and engage in local activities instead. Clubs serve a vital role in peoples' lives right now.
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