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Without JobKeeper 60% of Australian fitness businesses will close in less than a month
An explosive report from Fitness Australia has revealed that, without the Federal Government's JobKeeper payments or other financial support, 60% of businesses in the exercise industry "would last less than a month".
Released today, Fitness Australia's Impact of Extending the JobKeeper Payment for the Fitness Industry Report highlights the critical role JobKeeper has played in supporting an industry that’s designed to support Australians.
Worryingly, without JobKeeper the report found more than 60% of businesses, sole traders and individuals reported they would remain viable for less than a month; and 86.8% for less than three months.
The survey of more than 1,700 respondents represents more than 27% of the industry and included both businesses (including clubs, gyms and studios), and individuals (including sole traders, personal trainers and group fitness instructors) for a fair representation.
Advising that the Report laid bare the the impact of COVID-19, and the salvation provided by JobKeeper for businesses and exercise professionals, Fitness Australia Chief Executive, Barrie Elvish stated "aAs a result of COVID-19, the sector has already faced, and will continue to face, unprecedented challenges. The introduction of JobKeeper has allowed many in the industry to stay employed, while ensuring continued access to important services for the broader community.
“Australia’s fitness industry plays a critical role for the Australian economy as a source of jobs, investment, spend and innovation. It also positively impacts individual’s physical and mental health, consequently supporting greater productivity and happiness across the nation.”
The Impact of Extending the JobKeeper Payment for the Fitness Industry Report found:
Gyms, clubs and studios
• 93.4% of are relying on JobKeeper to stay afloat and keep people employed through this unprecedented time
• 95.9% of have seen more than 20% decrease in revenue as a result of COVID-19
• 72.9% of all those surveyed reported more than 40% decrease in revenue
• 76.6% have lost more than 30% of their members.
Sole traders, personal trainers and fitness professionals
• 82.5% are relying on JobKeeper to stay afloat and keep people employed through this unprecedented time
• 90.5% of respondents have seen more than 20% decrease in revenue as a result of COVID-19
• 78.1% of all those surveyed reported more than 40% decrease in revenue
• 89.49% have lost more than 30% of their clients
• 71.39% have lost more than 50% of their clients.
Adding that a continuation of JobKeeper will support a stronger Australia, fiscally, mentally and physically, Elvish commented "supporting Australia’s fitness industry by extending JobKeeper will ensure the sector can continue to be a key employer to support thousands of Australians with jobs; while supporting the broader population with improved physical and mental health outcomes."
Click here to read The Impact of Extending the JobKeeper Payment for the Fitness Industry Report.
18th July 2020 - Thousands back ATIC petition for retention of JobKeeper allowance
29th April 2020 - JobKeeper improvements needed to sustain Queensland Arts Sector
31st March 2020 - Australian Government launches $130 billion ‘JobKeeper’ wage subsidy
22nd June 2020 - Fremantle welcomes reopening of aquatic and fitness facilities
19th June 2020 - Plus Fitness opens three new clubs across two states
4th June 2020 - Fitness First Australia announces reopening of all clubs
7th April 2020 - Two-thirds of the world’s fitness clubs are currently closed
12th March 2018 - Australian fitness industry revenues to grow to $2.4 billion by 2022/23
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