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Without JobKeeper 60% of Australian fitness businesses will close in less than a month

Without JobKeeper 60% of Australian fitness businesses will close in less than a month
July 19, 2020

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.

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29th April 2020 - JobKeeper improvements needed to sustain Queensland Arts Sector

3rd April 2020 - Royal Life Saving welcomes JobKeeper payments as a ‘$700 million lifeline’ for aquatic facilities and swim schools

31st March 2020 - Australian Government launches $130 billion ‘JobKeeper’ wage subsidy

17th July 2020 - Reopening approved for Plus Fitness Campbelltown following temporary COVID-19 closure

16th July 2020 - Planet Fitness takes ‘vigorous steps’ to limit community transmission of Coronavirus

13th July 2020 - Fitness clubs use Evolt 360 Body Scanners to help members achieve their goals

1st July 2020 - Fitness Australia calls for Queensland Government to release Stage 3 Industry COVIDSafe Plan

1st July 2020 - Temperature screening system launched to help safeguard sports and fitness clubs against COVID-19 transmission

22nd June 2020 - Fremantle welcomes reopening of aquatic and fitness facilities

19th June 2020 - Plus Fitness opens three new clubs across two states

15th June 2020 - Fitness Australia calls for national consistency in state government gym reopenings

14th June 2020 - Australian Institute of Fitness’ Steve Pettit says industry ‘will never look the same as it did pre COVID-19’

4th June 2020 - Fitness First Australia announces reopening of all clubs

29th May 2020 - Fitness Australia releases Checklist to ensure gyms offer safe environments when reopening

29th May 2020 - Planet Fitness Australia founder calls on governments to ‘open our gyms’

26th May 2020 - Call for fitness industry stakeholders around the world to unite on 1st June

25th May 2020 - Technogym offers new digital features to assist fitness clubs’ re-opening plans

23rd May 2020 - Fitness Australia says governments should put peoples’ health and wellbeing above a drink at the pub

21st May 2020 - Fitness Industry launches comprehensive operations framework for safe reopening of gyms

7th April 2020 - Two-thirds of the world’s fitness clubs are currently closed

1st May 2020 - Fitness Australia report shows massive impact of Coronavirus closures on the industry

12th March 2018 - Australian fitness industry revenues to grow to $2.4 billion by 2022/23

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