THE IHRSA EUROPEAN MARKET REPORT - Les...
Transcript of THE IHRSA EUROPEAN MARKET REPORT - Les...
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2007EUROPEAN MARKET REPORT:THE IHRSA
e95/IHRSA members e145/non-members
The size and scope of the health club industry
EDITORSCatherine Masterson McNeil VP of International Operations, IHRSA
Jay M. Ablondi VP of Publishing, IHRSA
Karsten Hollasch Partner, Deloitte Health & Fitness
Alison O’Kane Assistant VP of International Operations, IHRSA
©COPYRIGHT 2007
INTERNATIONAL HEALTH, RACQUET & SPORTSCLUB ASSOCIATION
All rights reserved. No part of this publication may be reprinted, reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, or otherwise—without the express permission of IHRSA.
To order copies of this publication or other IHRSA publications, contact:
IHRSA
263 Summer Street Boston, MA 02210 +1-617-951-0055 +1-617-951-0056 (FAX) http://www.ihrsa.org
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 1
Table of ContentsAcknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Assumptions/Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
M&A Deal Activity in the European H&F Market . . . . . . . . . . . . . . . . . . . . . .7
Demographics: Who Joins Clubs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Overview of European Fitness Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22Europe vs. USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Market Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Membership Penetration Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Market Share of Top 5 Players (Number of Clubs) . . . . . . . . . . . . . . . . . . . . . . . . . 27Average Commercial Club Monthly Membership (gross) . . . . . . . . . . . . . . . . . . . . 28Market Potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Top 10 Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
European MarketsAustria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Greece . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Ireland (Republic of) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Portugal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Emerging European MarketsOverview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Market Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
About Deloitte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
About IHRSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
AcknowledgementsWe would like to thank the following persons and organizations who offered us a sound foundation to develop this most up-to-date booklet about the European Health and Fitness Market:
Country MarketsPaolo A. Adami (FIAF/Italy), Christophe Andanson (Planet Fitness, FHRSA/France), Henrik Brandt (DISS/Denmark), Paulo Alexandre Castro (IFAD/Portugal), Stanley van Duykeren (Emotion Fitness/Hungary), Kilian Fisher (ILAM/Ireland), Andreas Göthberg (SATS/Scandinavia), Anatoli Grigorenko (YLAB/Sweden), John van Heel (EFAA/Netherlands), Theo Hendriks (The Sports Leisure Group/Netherlands), Jana Kallas (Planet Fitness/Estonia), Ari Katajisto (Kuntosali&Fitness/Finland), Kreutzer Fischer & Partner (Austria), Paul J. Kuebler (Gold’s Gym International/ East Europe), Roberto Maestrami (Il Nuovo Club/Italy), Dominique McCallum (FHRSA/France), David Minton (The Leisure Database Company/UK), Daniel Müller (Face Czech/Czech Republic), Rune Nilsson (Fysiopartner/Norway), Erik Odegard (Gold’s Gym/Norway), Kemal Ozdes (EKS/Turkey), Michel Rota (SNELM/France), Gerhard Span (Manhattan Fitness/Austria), Martin Steinhauer (SFCV/Switzerland), Christoffer Susé (DFHO/Denmark), Eric Vandenabeele (De Fitness Organisatie/Belgium), Ronald Wouters (Fit!Vak/Netherlands), Karol Pecze (MAXFIT Health & Fitness/Slovakia)
Consumer marketGfk Panel Services (Benelux bv)
Special thanks to Matrix Fitness Systems/Johnson Health Tech for their generous support of this research.
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ForewordNow in its third year, IHRSA’s annual report on the European health club market has proven to be an invaluable resource for the industry and the investment community. It is our pleasure to present the 2007 edition to you.
This report is designed to be the first stop for anyone who desires baseline statistics and analysis of the individual markets that comprise the European health and fitness industry. We are grateful to Deloitte and to our many partners and members who contributed to this report. Our very special thanks go to Matrix Fitness Systems/Johnson Health Tech for their sponsorship support of this publication.
As is clearly evidenced in the “M&A Deal Activity” section (page 7), business is robust, with health club chains employing a variety of strategies to obtain capital and grow, and Private Equity continuing to play a major role. And whilst, as noted in the article, continuing consolidation will provide chains with greater economies of scale, there will always be room in the industry for well-run, customer-friendly independent clubs.
Our annual consumer tracking study conducted by GfK indicates that 27.7 million people belong to health clubs in the following six countries: Germany, Spain, Italy, France, the United Kingdom and the Netherlands. With more than 40 million health club members throughout Europe, there is clearly a vibrant market being served by our industry.
We hope that this document will lead to greater understanding of the markets that comprise Europe—and that understanding will lead to greater growth and prosperity for all.
3IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Cathy McNeil Jay Ablondi Alison O’Kane
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Abbreviationse Euro currency
$ US dollar currency
CIA Central Intelligence Agency
EIU Economist Intelligence Unit
EU European Union
GDP Gross Domestic Product
GfK Gesellschaft für Konsumforschung
H&F Health and Fitness
incl. including
IPO Initial Public Offering
M&A Mergers and Acquisitions
MBI Management Buy In
MBO Management Buy Out
mill. or m million
n/a Information not available
sqm square meters
VAT Value Added Tax
vs. versus
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Assumptions
Country
Data All data regarding the Country Profile has been provided through the CIA World Factbook website and Economist Intelligence Unit. GDP data for the individual countries was converted from Dollar ($) currency into Euro (i) currency with a yearly average exchange rate (see below).
Exchange rate
An exchange rate of 1.3543 $/1i has been applied for the translation US$/i.
Health & Fitness
Market Size Market size of the local fitness industries was estimated by the following calculation: Average price, incl. VAT, per month x 12 (months) x number of members. Secondary spending not included.
Secondary spending
Additional merchandise sales such as cosmetics, sportswear, food and beverages etc. Secondary spending was calculated by market size x 10%. The 10% share was based on professional estimates received from industry specialists.
Total employees
Numbers of total employees of the local fitness industries were provided by experts in the respective countries. The number relates to headcounts rather than full-time equivalents and accordingly are composed of perma-nent staff, trainees, instructors and trainers, and part-time employees.
VAT rate (fitness)
VAT rate for fitness is based on the general country VAT rate, except for Finland with 8%, Netherlands with 6%, and Spain with 7%, respectively.
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DefinitionsCorporate tax rate
Corporate tax rate means the average corporate tax rate of the respective country as per fiscal year 2006. The corporate tax rate can vary within a country due to special criteria such as legal form of the corporation, amount of income generated, industry in which the company is involved and specific payment conditions.
Europe 16 When talking about the Europe 16, this term describes the 15 European members before 31 December 2006 without Luxembourg, instead are included Norway and Switzerland. Europe 16 consists of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, United Kingdom plus Norway and Switzerland.
EU25 When talking about the European Union or the EU25 countries, this term describes the members of the European Union by 31 December 2006. Bulgaria and Romania, which joined on 1 January 2007, are not included. EU25 consists of Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom plus economic data but no fitness data from Cyprus, Luxembourg and Malta.
Fitness chain
A Fitness chain is defined as an operator of more than three fitness clubs with more than 5,000 members in total.
Fitness club A Fitness club is defined as a facility that contains a health & fitness room with resistance training and (optional) cardiovascular equipment. The facility must be open to the general public on either a pay and play or membership basis.
Member A member is defined as a person that has a paid membership of a fitness club.
Penetration rate
Share of the total population of a country that are members of a fitness club. In the case of Russia and Turkey, only the population of major cities was used in the calculation to enhance comparability. The 14 largest cities with more than one million inhabitants, totalling a population of 29.1 million was used for Russia. The numbers for Turkey were derived from the 11 largest cities with more than 500,000 inhabitants, totalling 20.4 million.
Top Players Selection and ranking based on the number of clubs the individual club chain operates.
Total Europe
Total Europe describes the EU25 countries plus Norway, Switzerland, Turkey (eleven largest cities) and Russia (14 largest cities)
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M&A Deal Activityin the European Health and Fitness Market
Industry open for New Forms of Investors’ TransactionsFinancial Investors have played a significant role in the development of the fitness sector on both sides of the Atlantic and their importance in company strategies is paramount and still appears to be growing. For over a decade the fitness club industry has been impacted by the influence of Private Equity investing in the market. These investors are attracted by the growth rates experienced by operators and the profit improvement opportunities through the improvement of management, structural organisation and operational efficiency.
In this issue of the IHRSA’s European Market Report we take a closer look at these trends in the fitness transaction market. The following table gives an extract of the major recent financial transactions dating back to the beginning of 2006.
M&A Transactions in the European Health & Fitness Market
Date TargetTarget Country Bidder
Bidder Country Nature of Buyer
Deal value (millon) Ty
pe o
f
Tran
sact
ion*
Jul 07 R-Fitness Russia World Class/Alfa Capital Partners
Russia Fitness club chain/Private Equity Firm
n/a 1/3
Jun 07 Fit24 Germany McFit Fitness GmbH Germany Fitness club chain n/a 1Jun 07 David Lloyd
Leisure Limited and all of its European assets
UK London & Regional Holdings Limited and Bank of Scotland
UK Real estate company and bank
1,364 2
Apr 07 MeridianSpa GmbH
Germany MeridianSpa (MBO vehicle)
Germany MBO vehicle for the buyout of MeridianSpa
n/a 4
Apr 07 Activ Fitness AG
Switzer- land
Migros-Genossenschafts-Bund (MGB)
Switzer- land
Food retailer and wholesale co-operative
n/a 2
Mar 07 Sportopolis Belgium HealthCity International B.V./Waterland Private Equity Investments B.V.
Nether- lands
Owner and operator of fitness clubs (50% share owned by Waterland PE)
n/a 1/3
Feb 07 Sports Club AS
Norway Elixia Holding AS Norway Health club chain n/a 1
Nov 06 SATS Holding AB
Sweden Tryg i Danmark Smba
Denmark Investment company in the health care and safety sectors, insurance related
175 2
M&
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M&A Transactions continued
Date TargetTarget Country Bidder
Bidder Country Nature of Buyer
Deal value (millon) Ty
pe o
f
Tran
sact
ion*
Sep 06 Holmes Place Plc
UK Virgin Active Limited
UK Health clubs n/a 1
Sep 06 ELIXIA Nordic ASA
Norway Norvestor Equity AS Norway Private Equity firm 79.8 3
Aug 06 Living Well Premier Health Clubs
UK Bannatyne Fitness Ltd
UK Provider of health club facilities
133.3 1
Aug 06 Fitness Exchange Ltd
UK Fitness First Limited UK Health club operator 14.8 1
Jul 06 The Club Company
UK Boundary Capital Limited
Ireland Asset and project management company focusing on property and corporate transactions
139.6 3
Jun 06 Equinox Fitness AS
Denmark World Class Iceland Iceland Company engaged in operation of fitness centre
n/a 1
Jun 06 De Vere Group Plc
UK Alternative Hotel Group (AHG) Venice
UK Bidder company for the acquisition of De Vere Group Plc
1,405.6 4
May 06 Next Century NV
Nether-lands
HealthCity International B.V.
Nether-lands
Owner and operator of fitness clubs
7 1
Apr 06 Fitness dk A/S Denmark Parken Sport & Entertainment A/S
Denmark Sports management company
45.5 2
Apr 06 World Class Russia
Russia Alfa Capital Partners
Russia Private Equity firm 24,7 3
Mar 06 Canada Square Health and Fitness Limited
UK Canada Square Health and Fitness Holdings Limited
UK Acquisition vehicle cre-ated for the acquisition of Canada Square Health and Fitness Limited
n/a 1
Mar 06 Crown Sports UK Robert Tchenguiz’s R20
UK Health club chain 50 5
Mar 06 Thames Club Ltd
UK Sheffield United Football Club & FLi
UK UK based football club 6 2
Feb 06 Strata Partners Russia Eagle Venture Partners
Russia Private Equity firm 67.5 3
Feb 06 Crown Sports Plc (Dragons health clubs)
UK LA Fitness UK Health club chain 38.5 1
Legend referring to type of transaction:1: Market Consolidation2: Investor outside the industry3: Private Equity investment4: Management Buy-Out or Buy-In5: Sale and Lease Back
Source: Mergermarket, Leisure Opportunities, Homepage McFit
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These financial transactions show the different strategies of both the buyer and seller, which will also be dependent upon either the type of investor and/or the business strategies/objectives involved. In the following paragraphs we describe some of the trends in more detail.
Buy & Build StrategyFitness chains have several opportunities to operate and expand successfully in this industry. An expansion strategy has been very prevalent amongst the fitness chains as they endeavour to gain from economies of scale. A fitness chain has two methods of growing its business, either 1) the fitness chain can grow organically by using its own resources and/or 2) the fitness chain can expand by market consolidation, in other words, by acquisition of its competitors. For instance in a ‘Buy & Build Strategy’, a large amount of capital is needed, which very often comes from external investors such as Private Equity. The benefit of buying existing operators is that they already own prime locations and have fully operating clubs, which the buyer then adds to its existing portfolio of clubs. However, there are risks of integration and, the market has seen some examples of operators failing to integrate the newly acquired clubs into their overall concept.
A very recent example of such consolidation in the fitness market is the acquisition of Fit24 by the McFit Fitness GmbH. McFit is the market leader in the German fitness budget segment and took over ten of the 23 clubs operated by Fit24, the number two in the budget segment. The remaining 13 clubs not acquired by McFit will be operated as single clubs without the Fit24 brand in the future.
Having bought the direct competitor, McFit has further strengthened its market presence. By the end of June 2007, the operator had 520,000 members and 83 clubs all over Germany. By the end of 2007 the hundredth fitness centre is planned to be opened within the German market. An expansion into other European countries should begin to be realised in 2008 as McFit enters these markets probably by purchasing another club operator outside of the German market that has already positioned itself in the prime locations in that country. The official aim of McFit is to become Europe’s number one operator in the budget segment with more than one million members.
As shown in the table on page 7, HealthCity International B.V. expanded their business substantially. The largest fitness chain of the Netherlands has been a portfolio company of Waterland Private Equity Investments B.V. since 2005. With Waterland, a Dutch Private Equity firm, owning 50 percent of the company’s shares, HealthCity could realise its expansion plans and achieve steady growth either by opening new clubs or by acquisitions of existing clubs. At the end of June 2007 it owned 44 clubs in the Netherlands, 26 clubs in Belgium and 23 clubs in Germany.
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Increasing interest from other industriesIn recent years, another trend of health & fitness financial transactions has been the involvement of investors outside the core market.
In June 2007 the fitness clubs of David Lloyd Leisure Limited in UK and all of its European assets were acquired by Newco, a UK based company owned jointly by London & Regional Holdings Limited and the Bank of Scotland. London & Regional is a property investment company which already owns Next Generation, one of the leading racquet, health and fitness club operators in the UK. The two businesses are planned to be integrated to become the leading operator of premium clubs in the UK.
Together with the Bank of Scotland, London & Regional acquired the David Lloyd fitness clubs from Whitbread Plc, a listed UK based company that has its origins in the Brewery and beverage industry. Whitbread subsequently expanded into the leisure market during break-up of tied houses from Breweries instigated by the monopolies & mergers commission. Whitbread, which bought the David Lloyd chain from the former professional tennis player of the same name in 1995, will use the proceeds to pay back debts and follow more focused growth ambitions for its hotels, restaurants and coffee shops.
The continuing consolidation of the high end luxury fitness chains will lead to additional efficiencies brought about by further economies of scale and benefits of market concentration.
Another interesting example of investors outside the fitness industry is Sheffield United Football Club & FLi, a listed UK based football club, which purchased Thames Club Ltd from the real estate agent Wheatsheaf Park Limited. The chairman Kevin McCabe commented on the acquisition of the health and fitness club as “a significant step forward for Sheffield United”. Hereby, McCabe states, they want to “advance further our strategy of building a property and leisure service business around a football club”. With the additional proceeds of the Club Sheffield wants to finance the renovation of the club’s stadium, to maintain its position in the Championship and to attain promotion to the Premiership.
Private Equity remain key playersPrivate Equity are still the major investors in the fitness industry. The fitness chains and these investors have formed strategic partnerships to jointly develop the business. A transaction such as the purchase of ELIXIA Nordic ASA by the Norvestor Equity is an example of a secondary buyout of the business by Private Equity. The Norway based Private Equity firm acquired the Norwegian fitness clubs from the ELIXIA Holding GmbH, which is a portfolio company of UK’s Compass Partners, also a Private Equity firm.
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Russia also offers an increasing level of financial opportunities for expansion capital. It is clear that a new generation of wealthier individuals in the new market economy wishes also to indulge in the health and fitness pursuits of its European neighbours. This is a common occurrence in a successful economy, as more and more people find that they have, after spending money on the necessities of life, spare funds to spend on the niceties of life.
A controlling stake of 50 percent in World Class, a leading Moscow based chain of premium fitness clubs, was acquired by Alfa Capital Partners, a subsidiary of Alfa Group, one of Russia’s largest financial industrial groups, in 2006. Together they plan to invest up to US$120 million until 2010 in the development of the existing World Class fitness chain by the acquisition and re-branding of other fitness clubs in Russia. They even want to expand into the mid-market segment with a new brand. Compared to the penetration of modern fitness clubs in central Europe the Russian rate is still far behind, but World Class and Alfa expect an immense growth potential. It will not be too long before other Private Equity enters into this lucrative market.
Management buy-outs (MBO) and Management buy-ins (MBI)Other forms of transactions, namely Management buy-outs (MBO) and Management buy-ins (MBI), are becoming more and more common in the fitness industry.
An example of such a transaction is the MBO by the management of the MeridianSpa GmbH, a German premium fitness chain, led by Leo Eckstein. Together with the financial help of the HSH Nordbank AG the managers acquired the MeridianSpa GmbH to achieve solid growth and to establish up to five new clubs within the next few years.
In contrast to a MBO, in a MBI, an outside manager or management team purchases an ownership stake in a company and replaces the existing management team. In the MBI of De Vere Group Plc the Alternative Hotel Group Venice agreed to acquire the entire issued share capital of De Vere. The AHG was a bidder company created by a number of directors of the Marylebone Warwick Balfour (MWB) Group Plc, a UK based Property Company specialised in Malmaison and Hotels du Vin. Whilst still focusing on the core conference, meetings and training business, AHG has sallied to increase its revenues from the leisure sector by upgrading their properties to four-star standard and adding new services such as spas. Seeing the synergy effects with the fitness industry, AHG has planned the integration of De Vere with Verve Venues, which manages residential conference, meeting and training centres across the country which will now also be offering golf courses and/or health and fitness facilities following the merger of the two groups.
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Sale and lease backA specific model of financial restructuring can be found in the sale and lease back transaction. Such a transaction consists of an arrangement where the seller of an asset leases back the same asset from the purchaser. This has been deemed to be a very useful source of cash when companies need to untie the cash invested in assets for other investments and expansion activities, but with the added benefit that theses assets are still needed by the seller in order to operate in the industry.
For example, in February 2006 LA Fitness bought 15 of the Crown Sports’ Dragon Health Clubs. Just one month later LA Fitness sold the properties of these clubs to Robert Tchenguiz’s R20 investment vehicle in a £50 million sale and lease back deal.
ConclusionThe above examples of financial transactions give a flavour of the different strategies of both the buyers and sellers involved in such transactions. Indeed there may be other strategies that are not yet prevalent such as those strategies in recent history (1) to list fitness chains in the 80’s in order to get access to additional funds for expansion provided by public markets as well as to realise the exit strategies for the Private Equity investors and (2) strategies employed to delist the same fitness chains in the mid 90’s from the stock exchange which saw a string of public to private transactions instigated by various Private Equity houses as they saw the undervaluation of fitness companies and strove to extract the hidden value in these fitness companies not yet recognised fully by public stock markets. The fitness industry has generally been a financial success story for both the Private Equity investors and the fitness industry in its entirety. The Private Equity industry has enabled the efficient operation of the fitness industry where at certain times, the public markets failed to see the full potential of the fitness industry which has a stable access to cashflows.
Clearly different time periods required different strategies. What will be the future strategy and reasoning behind financial transactions? We do not have a crystal ball, however with the continuing increase in the wealth and leisure time of individuals in the western hemisphere and the changing demographics, growth opportunities are there for the taking and consolidation will bring further operating and financial economies of scale to the fitness chains, which the individual operators will find hard to match.
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Consum
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Demographics: Who Joins Clubs?In 2006 the Gfk conducted, as part of the annual tracking study, a survey asking fitness consumers of the Netherlands, Spain, United Kingdom, Germany, Italy and France inter alia about their age, their educational status and some of their training habits, differen-tiating men and women. Some of the results are especially interesting in comparison to the other countries questioned.
Examining the age structure of fitness club members within these countries gives some useful hints on possible fitness trends. As to be expected a very low percentage (on average 6%) of fitness club members is between 14 and 17 years old. The strongest age groups are represented by those people between 18 to 34 (36,54%) and 35 to 54 (34,9%) years. Together they occupy more than 70% of the member base in the six countries observed. Within theses age ranges all countries show similar rates except from Italy and Germany. In Germany 53% of the member base are between 18 and 34 years old, whereas in Italy only 11% is of this age. In contrast, Italy has a much higher rate of 35 to 54 year olds, with 54%. In Germany only 20% of all club members are in this age, which should be considered as a growth area.
A large potential, not yet utilised by the fitness industry, can be experienced in the seniors’ age group. 55 plus members form on average only 22% of fitness club members in these six countries. As the European population grows older and the anticipated average life expectancy increases fitness clubs need to develop special programs and facilities aiming at the needs and requirements for elderly people.
AGE STRUCTURE OF FITNESS CLUB MEMBERS IN SIX MAJOR EUROPEAN COUNTRIES
0
10
20
30
40
55+
35–54
18–34
14–17
6.33%
36.54% 34.90%
22.22%
Average over all six countries
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Besides the age structure, the findings on the differences in training habits between female and male club members are another interesting aspect to be compared between the observed countries. Regarding the categories strength training, cardio fitness and group exercise the distribution between male and female participants differs significantly between some of these countries.
GENDER DISTRIBUTION WITHIN DIFFERENT FITNESS CATEGORIES IN SIX MAJOR EUROPEAN COUNTRIES
Expectedly, more men than women use strength equipment. About 44% of the users of strength training are female, whereas about 56% are male. Interestingly, in France slightly more women participate in strength training with 53% compared to 47% men.
Almost 10% of the population over 14, 15 or 16 is active in cardio fitness. The distri-bution in this training category is on average quite evenly spread between men and women. Only in the Netherlands and in Germany some variances can be observed. The Dutch women (58%) like cardio far more than the Dutch men (42%), whereas in Germany these ratios are just the other way round (43% to 57%).
As to be expected, women frequent group exercises more often than men do—on average almost 73% of the participants are female. Especially in France, with 85%, women are very active in aerobics, steps, spinning and so on. In Italy and Spain men can be seen in fitness classes more often then in the rest of the six European countries. In those tow countries more than 30% of the participants are male.
On the following pages the results of the Gfk research are specified for each of the six countries.
Male
FemaleStrengthTraining
44%
56%
50%
73%
27%
CardioFitness
GroupExercise
Percentage
0 20 40 60 80
50%
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IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
NetherlandsSimilar to 2005, the Netherlands reported the smallest total population, as compared to the other five European countries (France, Germany, Italy, Spain, and United Kingdom), but they reported the highest percentage of an adult population belonging to a health club. These health club members log, on average, three visits to the gym per week and 59% of all members are female. The largest percentage of members are between the ages of 35-54 (39%) and the next largest segment is aged 18-34 (36%). There continues to appear to be a relationship between being educated and being a health club member, as 51% of all members have received a ‘higher level’ of education in the Netherlands, while an additional 41% of members completed a ‘medium level’ of education.
The most popular form of exercise is cardio fitness (75%) and nearly 60% of women practice this form of exercise while at the club. Strength training (69%) is the next most popular fitness activity and 51% of these participants are male. A reported 57% of health club members indicate that they participate in group exercise and nearly 7 out of 10 women participate.
NETHERLANDS: HEALTH CLUB MEMBERSHIP—PARTICIPATION
18-34
35-54
55+
36%
39%
17%
8%
14-17Lower level
Medium level
Higher level
1% 7%
41%51%
Unknown
NETHERLANDS: HEALTH CLUB MEMBERSHIP—EDUCATION
Male
FemaleStrengthTraining
49%
51%
58%
42%
69%
31%
CardioFitness
GroupExercise
Percentage
0 20 40 60 80
NETHERLANDS: HEALTH CLUB MEMBERSHIP—AGE
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SpainOn average Spanish health club members attend their clubs an impressive 164 days per year. The majority of the members (53%) are female and over the age of 35 (53%). A reported 56% of members have received a secondary education (12-16 years old and 16-18 years old).
The most popular form of exercise at the health club is cardio fitness; 54% of are men. Strength Training participation (64%) is the next most popular activity and a majority are men (55%). Women comprise 68% of group exercise participants, the third most popular activity at the health club.
SPAIN: HEALTH CLUB MEMBERSHIP—PARTICIPATION
18-34
35-54
55+
38%
33%
20%9%
14-17
Primary(11-12 yrs old)
4%
13%
29%
12%
Primary(not finished)
27%
University Degree(3 years)
Secondary(16-18 yrs old)
Secondary(12-16 yrs old)
University Degree(5 years)
15%
SPAIN: HEALTH CLUB MEMBERSHIP—AGE
SPAIN: HEALTH CLUB MEMBERSHIP—EDUCATION
Male
Female45%
46%
68%
0 20 40 60 80
StrengthTraining 55%
54%
32%
CardioFitness
GroupExercise
Percentage
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IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
United KingdomOf all the current health club members, 54% are female and 38% are between the ages of 35-54. A majority (67%) of members have at least an A level education.
Cardio fitness is by far the most popular form of exercise in the United Kingdom, as 8 out 10 members are participating. A majority of these participants, 54%, are men. Almost 50% of health club members participate in group exercise and nearly two-thirds of these members are women.
18-34
35-54
55+
36%
38%
21%5%
14-17 PrimarySecondary
A level
1% 4%
28%33%
Don’t Know
34%
University & above
UK: HEALTH CLUB MEMBERSHIP—AGE
UK: HEALTH CLUB MEMBERSHIP—EDUCATION
Male
FemaleStrengthTraining
47%
53%
54%
46%
74%
26%
CardioFitness
GroupExercise
Percentage
0 20 40 60 80
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GermanyIn Germany, 59% of the surveyed health club members are male, 53% are between the ages of 18-34, and nearly a quarter (23%) are over the age of 55. More than 4 out of 10 (42%) health club members reported completing secondary education, while another 41% have completed higher education.
Strength training is the most popular activity at the health club, where 87% of members participate. Cardio fitness is a close second in popularity, with 85% of members partici-pating. Men are the majority gender within both of these activities, 61% and 57%, respectively. Approximately a quarter of all health club members participate in group exercise and an overwhelming majority are female (79%).
18-34
35-54
55+
53%
20%
23%
4%
14-17
Primary withapprenticeship
2%14%
42%
13%
Primary withoutapprenticeship Higher
Secondary
University DegreeNo Answer
1%
28%
GERMANY— HEALTH CLUB MEMBERSHIP—AGE
GERMANY— HEALTH CLUB MEMBERSHIP—EDUCATION
Male
FemaleStrengthTraining
39%
61%
43%
57%
79%
21%
CardioFitness
GroupExercise
Percentage
0 20 40 60 80
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ItalyIn Italy, the majority of health clubs members are female (58%), and are between the ages of 35-54, 54%. Only 16% of members have been to a university and another 59% have not graduated from high school, yet.
Group exercise is the most popular form of exercise with 65% of health club members participating and the majority (67%) of these members are female. Strength training is the second most popular form of exercise and men account for 60% of participants. Cardio fitness appears to bridge the gap between the genders, however females slightly edge out males, 54% and 46% respectively.
18-34
35-54
55+
7%
11%
54%
28%
14-17University without diploma
6% 11%
25%
12%
Degree
17%
Junior high school without diploma
Junior high school with diploma
Senior high school without diploma
Elementary
26%
5%
Senior high school with diploma
ITALY— HEALTH CLUB MEMBERSHIP—AGE
ITALY— HEALTH CLUB MEMBERSHIP—EDUCATION
Male
FemaleStrengthTraining
40%
60%
54%
46%
67%
33%
CardioFitness
GroupExercise
Percentage
0 20 40 60 80
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FranceIn France, the majority of the health club members have a higher degree or university degree, 59%, and are over the age of 35, 55%. The majority of members are female, 66%.
Group exercise is the most popular form of exercise for health club members, with 69% participating; 85% of women members participate. Strength training is a very close second in popularity, with 6 out of 10 health club members participating in the activity.
18-34
35-54
55+
38%
33%
22%
7%
14-17
Primary
Secondary
HigherNo Answer
5%1%11%
24%
32%
Pre-Primary
27%
UniversityDegree
FRANCE— HEALTH CLUB MEMBERSHIP—AGE
FRANCE— HEALTH CLUB MEMBERSHIP—EDUCATION
Male
FemaleStrengthTraining
53%
47%
53%
47%
85%
15%
CardioFitness
GroupExercise
Percentage
0 20 40 60 80 100
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IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Research MethodologyDuring November/December 2006, consumer fitness research was collected from six European countries (France, Germany, Italy, Netherlands, Spain, and United Kingdom). In every country a representative sample of the population were asked the same three questions. These questions were asked as part of a larger omnibus survey. The sample size in each country consisted of 1,000 persons aged 14/15/16 years and older, for a total of 6,000 survey participants. The three questions related to fitness participation, health club membership, and attendance at the health club. Responses included members and non-members of all types of health clubs (commercial and not-for-profit). The results from the research have been projected on to each country’s total population. This research is part of an annual consumer tracking survey and was sponsored by IHRSA and conducted by GfK.
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Overview of European Fitness MarketAlthough the aim of the European Union has always been to fully integrate all the new member countries and to combine the different interests, the fitness club industry with-in Europe certainly is still very heterogeneous. Differences in market penetration and the market structure concerning single or chain operators cannot be denied. The UK or German markets are leading within Europe, but also other countries push new trends and develop very fast. Especially the Russian market might become very promising in the next years.
As obesity—and especially adiposis of children—and the aging of our society become more and more present in the minds of the politicians in Europe and in the USA, the fitness clubs and chains are in a position to further extend the fitness trend and to gear their offerings towards the specific customers’ needs. Clubs focusing on children, elderly people or women may expect future growth and revenue potentials. Lady fitness already is quite established in the US and Europe, e.g. Curves International the worldwide leader of fitness chains regarding members and facilities. With a rising part of the popu-lation older than 50 years fitness chains should realise where to invest and to create new offerings. Not only is the fitness club industry claimed to adapt to a new customer base, but also the equipment industry has to develop new devices adjusted to children’s bod-ies or elderly peoples’ physical abilities.
The following table shows a comparison between the European Union and the USA. One of the key observations is the significant difference in the membership and pene-tration despite a similar number of fitness clubs in the two markets. This is an indica-tion for the growth potential in Europe.
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 23
Overview
of European Fitness Market
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
EU25* USA
General Information
Population (million) 461.6 298.4
Population per km! 116.1 30.3
GDP per capita $29,400 $43,500
Unemployment rate (%) 8.5% 4.8%
Fitness Market
Fitness Clubs 38,191 29,357
Members (million) 36.5 42.7
Average per club 1,119 1,454
Penetration rate 7.9% 14.3%
Source: Eurostat; IMF; Deloitte Analysis; IHRSA
Note:* The individual data for Europe is in average terms, consisting of data that was gathered for the indi-vidual selected countries.In order to compare the above data, specifically the penetration rates, and to comment on the growth potential, the different infrastructure of public and commercial health clubs in theses countries as a whole have to be taken into consideration. The European Union statistics consists of the data of the current members of the European Union (= Germany, UK, Austria, Belgium, Netherlands, France, Italy, Ireland, Spain, Portugal, Greece, Finland, Sweden, Denmark, Poland, Czech Republic, Slovak Republic, Estonia, Lithuania, Latvia, Slovenia, Hungary plus economic data but no fitness data from Luxembourg, Malta, Cyprus).U.S. penetration rate is based on population age 6 and over.
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Market Size in Millions g
Source: Deloitte Analysis
Sum Rest of EU25
Slovenia
Lithuania
Estonia
Slovakia
Latvia
Czech Republic
Hungary
Poland
Turkey
Austria
Ireland (Republic of)
Denmark
Belgium
Switzerland
Norway
Portugal
Finland
Greece
Sweden
Russia
Netherlands
France
Germany
Spain
Italy
UK
Europe 16
EU25
Total Europe
e3
e8
e8
e9
e27
e50
e58
e92
e189
e202
e209
e191
e252
e252
e301
e317
e330
e370
e593
e960
e1,299
e2,083
e2,822
e2,924
e2,981
e19,850
e19,551
e2,718
e21,253
e4,726
This graph illustrates an overview of market sizes of the Health and Fitness industry in the individual European countries. It has to be noted however that all numbers are estimates only, based on the industry data that has been obtained through market research and calculated as follows: (average price per month x number of members) x 12 (months).
No secondary spending has been included. In order to compare the market size of one country to another (as illustrated in the graph), or to comment on the growth potential, the different geographic and economic structures of the individual countries have to be taken into consideration.
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 25
Overview
of European Fitness Market
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Sum Rest of EU25
Slovenia
Lithuania
Estonia
Slovakia
Latvia
Czech Republic
Hungary
Poland
Turkey
Austria
Ireland (Republic of)
Denmark
Belgium
Switzerland
Norway
Portugal
Finland
Greece
Sweden
Russia
Netherlands
France
Germany
Spain
Italy
UK
Europe 16
EU25
Total Europe
e3
e8
e8
e9
e27
e50
e58
e92
e189
e202
e209
e191
e252
e252
e301
e317
e330
e370
e593
e960
e1,299
e2,083
e2,822
e2,924
e2,981
e19,850
e19,551
e2,718
e21,253
e4,726
Members (millions)
Slovenia
Estonia
Lithuania
Slovakia
Latvia
Czech Republic
Hungary
Poland
Turkey
Austria
Ireland (Republic of)
Denmark
Belgium
Switzerland
Finland
Norway
Portugal
Greece
Russia
Sweden
Netherlands
France
Italy
Germany
Spain
UK
EU25
Europe 16Total Europe 38.904
36.926
36.509
7.160
6.585
5.520
5.600
3.471
2.706
1.300
1.000
0.550
0.735
0.545
0.500
0.500
0.500
0.458
0.400
0.397
0.350
0.220
0.150
0.120
0.070
0.025
0.020
0.015
0.008
Source: Deloitte Analysis
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Russia
Belgium
Austria
Portugal
France
Switzerland
Germany
Greece
Denmark
Italy
Finland
Ireland (Republic of)
UK
Norway
Sweden
Spain
Netherlands
Average EU25
3.4%
4.8%
4.8%
5.2%
5.7%
6.7%
6.8%
6.9%
8.5%
9.5%
9.6%
9.8%
11.8%
11.8%
14.3%
14.6%
16.4%
7.9%
Membership Penetration Rates (per January 2007)
Note: The penetration rate for Russia is calculated with the population of the top 13 cities with over one-million inhabitants.
Source: Deloitte Analysis All figures include commercial and not-for-profit clubs.
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 27
Overview
of European Fitness Market
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Market Share of Top 5 Players (Number of Clubs)
Greece
Italy
Spain
Ireland (Republic of)
Russia
France
Portugal
UK
Netherlands
Germany
Belgium
Austria
Finland
Switzerland
Sweden
Denmark
Norway
0.0%
1.2%
3.6%
4.4%
4.5%
6.0%
6.6%
7.6%
7.8%
8.0%
9.7%
10.5%
11.6%
14.2%
20.8%
26.3%
27.2%
Source: Deloitte Analysis
Note: Top 5 Players are the fitness club chains with the largest number of clubs.
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Spain
Denmark
Sweden
Netherlands
Belgium
Germany
Greece
Ireland (Republic of)
Switzerland
Italy
Austria
Norway
Russia
Portugal
France
Finland
UK
37e
38e
38e
40e
42e
42e
42e
42e
42e
45e
40e
46e
80e
48e
50e
55e
62e
Note: Gross means including country VAT. All data from 2006, or more recent if available.
Source: Deloitte Analysis
Average Commercial Club Monthly Membership (gross)
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 29
Overview
of European Fitness Market
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Market PotentialPenetration Rates vs. EU Average
EU25 Average Penetration Rate Penetration Market Potential Above Market Average
Russia
Belgium
Austria
Portugal
France
Switzerland
Germany
Greece
AverageEU25
Denmark
Italy
Finland
Ireland (Republic of)
UK
Norway
Sweden
Spain
Netherlands
3.4%
4.8%
4.8%
5.2%
5.7%
6.7%
6.8%
6.9%
7.9%
8.5%
9.5%
9.6%
9.8%
11.8%
11.8%
14.3%
14.6%
16.4%
-4.5%
-3.1%
-3.1%
-2.7%
-2.2%
-1.2%
-1.1%
-1.0%
0.6%
1.6%
1.7%
1.8%
3.9%
3.9%
6.4%
6.7%
8.5%
Source: Deloitte Analysis
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IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub AssociationIHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Country Additional Membership Potential
Additional Market Size Potential (million)
France 1,345,473 807.28 e
Russia 1,301,611 454.52 e
Germany 933,095 470.28 e
Belgium 322,569 162.57 e
Portugal 288,387 166.11 e
Austria 251,564 120.75 e
Greece 111,297 56.09 e
Switzerland 93,199 46.97 e
The graph opposite represents penetration rates in 16 European countries + Russia compared to EU25 average. Further growth potential is estimated for countries with penetration rates below EU25 average. Based on the assumption that these countries can reach the EU25 average penetration rate additional market potential is calculated. This estimated market potential is based on average membership fees in 2006.
Because of its low penetration rate France shows the biggest additional market potential of all 16 European countries. France could add almost one billion Euro turnover per year. The Russian figures are based on the 14 biggest cities only, so the membership potential is based on these cities as well.
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 31
Overview
of European Fitness Market
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Top 10 Players
Health City
INJOYElixiaEsportaSATSKieser Training
Virgin Active
David Lloyd/
Whitbread
McFitFitness First
Members
MembersClubs
Clubs
906,000 416,000 392,698 389,000 289,300 230,000 214,443 184,000 175,000 161,310 375 68 69 86 145 104 53 55 163 75 2,416 6,118 5,691 4,523 1,995 2,212 4,046 3,345 1,074 2,151Average
per club
Average membersper club
Note: Numbers are for European territory only, as of year end 2006, and from those operators responding to our inquiry.
Source: Deloitte Analysis, unaudited company data
32 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
AUSTRIA
AU
STRI
A
LocationCentral Europe, north of Italy and Slovenia.
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
COUNTRY PROFILE
Capital Vienna
Area (km!) 83,870
Population (million) 8.2
Population per km! 97.77
GDP per capita, current prices in e
31,573 e
Inflation rate (%) 1.40%
Unemployment rate (%) 4.90%
FITNESS IN GENERAL
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 467
Members (million) 0.397
Average members per club 850
Penetration rate 4.84%
Average gross price per month
40.00 e
Market Share Top Players (Number of Clubs) only commercial
10.49%
FITNESS & ECONOMY
Estimated market size (sales in millions)
190.56 e
Estimated market size incl. secondary spending (sales in millions)
209.62 e
Estimated total employees 7,800
Corporate tax rate 25%
VAT rate (general) 20%
TOP 5 PLAYERS
Injoy 27
Club Danube 9
John Harris 5
Holmes Place 4
Kieser 4
INTERNATIONAL PLAYERS
Elixia
Holmes Place
Injoy
Kieser
Source: Deloitte Analysis; CIA World Factbook; EIU; Kreutzer Fischer & Partner; Manhatten Fitness
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 33
AU
STRIA
Fitness MarketWith an average membership fee of i40 and a penetration rate of 4.8%, the Austrian market has a size of about i191 million. Market growth is expected to be about 5% in 2007. The low budget clubs hold a market share of about 30%. This is one reason for high competition between clubs and only medium market power on the supply side. The number of clubs decreased; there is an ongoing process of consolidation in Austria.
Group fitness is becoming more and more popular, e.g., Pilates and Yoga. More and more older people, the so-called “50+ Generation,” are engaging in fitness activities and are fit as never before. Women-only clubs play a more important role. Racquet sports, studio cycling and bodybuilding are less important nowadays.
The five top players increased their market share in terms of number of clubs. Franchise chain INJOY is the largest player in the Austrian market after opening seven new sites in 2006 and operating 27 clubs by the end of 2006. INJOY is also the leading chain in Germany in terms of clubs with 135 sites and dominates the German speaking countries in Europe.
Economic OutlookThere will be a modest rise in social expenditure, introduction of a minimum wage and education reforms. In 2006 the economy grew by a robust 0.9% on a quarterly basis and by 3.2% year on year in the third quarter of 2006. Employment continued to rise in the final quarter, contributing a further drop in unemployment. Annual inflation (EU harmonized measure) slowed down, following a sharp decline in oil prices. Inflation rate is forecast to be 1.8% in 2007. GDP is expected to grow by 2.8% in 2007, outpacing average growth in the Euro area for a fifth successive year.
Associations/FederationsVerband der gesundheitsorientierten Fitnessanlagen (VGF; www.vgf.at)
Trade ShowGesund Leben
Messe Wels9-11 November 2007www.messe-wels.at
34 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
BELG
IUM
BELGIUM
LocationWestern Europe, bordering the North Sea, between France and the Netherlands.
LUX.
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
COUNTRY PROFILE
Capital Brussels
Area (km!) 30,528
Population (million) 10.4
Population per km! 340.67
GDP per capita, current prices in e
31,769 e
Inflation rate (%) 1.80%
Unemployment rate (%) 8.10%
FITNESS IN GENERAL
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 842
Members (million) 0.5
Average members per club 594
Penetration rate 4.81%
Average gross price per month
42.00 e
Market Share Top Players (Number of Clubs) only commercial
9.74%
Fitness & Economy
Estimated market size (sales in millions)
252.00 e
Estimated market size incl. secondary spending (sales in millions)
277.20 e
Estimated total employees 2,800
Corporate tax rate 34%
VAT rate (general) 21%
VAT rate (fitness) 6%
TOP 5 PLAYERS
Passage Fitness First 24
Health City 24
Go Fit 13
Fit Class 14
Lifestyle Quality 7
INTERNATIONAL PLAYERS
Aspria
David Lloyd
Fitness First
Health City
Source: Deloitte Analysis; CIA World Factbook; De Fitness Organisatie; EIU
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 35
BELGIU
M
BELGIUMFitness MarketThe number of commercial clubs grew from about 750 in 2005 to 842 in 2006 while the average monthly membership fee fell from i46 to i42. The number of members grew as well. The estimated market size is i252 million (+14%). The penetration rate of 4.8% is still below the European average and considerably lower than in the Netherlands.
The Dutch based fitness operator HealthCity is a new major player in Belgium with 24 sites. The Belgian market is still developing and is therefore an interesting target for international operators, resulting in a high threat of market entry for domestic players.
Economic OutlookGDP growth is expected to slow down after about 3% in 2006 to 2.1% in 2007, mainly because of a slowing private consumption. Consumer confidence should remain strong, on the back of lower unemployment rates. Demand will not fall too sharply because of higher employment levels. Wages are expected to rise, but only moderately in real terms. Inflation (EU harmonized measure) fell gradually throughout 2006, from 2.6% in the first quarter to 1.8% in the fourth quarter—below the Euro area average. The stock market’s strong 2006 progression is set to continue.
Associations/FederationsBBF&W/VBF&W (employers’ organisation; www.fitnessorg.be)
De Fitness Organisatie (DFO; www.fitnessorg.be)
Trade ShowFit2Pro
15-17 February 2008Brussels Expowww.fit2pro.be
36 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
DENMARK
DEN
MA
RK
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationNorthern Europe, bordering the Baltic Sea and the North Sea, north of Germany.
COUNTRY PROFILE
Capital Copenhagen
Area (km!) 43,094
Population (million) 5.4
Population per km! 125.31
GDP per capita, current prices in e
41,035 e
Inflation rate (%) 1.90%
Unemployment rate (%) 3.80%
FITNESS IN GENERAL
Fitness Clubs (public) 248
Fitness Clubs (commercial) 334
Members (million) 0.458
Average members per club 787
Penetration rate 8.48%
Average gross price per month
38.00 e
Market Share Top Players (Number of Clubs) only commercial
26.35%
FITNESS & ECONOMY
Estimated market size (sales in millions)
208.85 e
Estimated market size incl. secondary spending (sales in millions)
229.73 e
Estimated total employees 7,000
Corporate tax rate 30%
VAT rate (general) 25%
TOP 5 PLAYERS
Fitness dk 30
SATS 18
Equinox 17
FitnessWorld 12
Motion og Trivsel 11
INTERNATIONAL PLAYERS
Curves
David Lloyd
Fitness First
SATS
Source: Deloitte Analysis; DFHO; DISS; CIA World Factbook; EIU
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 37
DEN
MA
RK
Fitness MarketThe data about the Danish fitness market are based on statistical figures provided by the Danish Institute for Sports Studies. Therefore we have to correct last year’s data: Instead of 130 public and 350 commercial clubs there were 230 and 300 in 2005, respectively. This indicates a growth in both sectors, counting 248 public and 334 commercial clubs by the end of 2006. The average gross price per month is now i38, which results in a market size of almost i210 million. No further increase in price is expected.
Market power on supply and demand side, competition between fitness clubs and threat of new entrants are described as moderate. The low budget sector is growing.
Private insurance companies are looking for cooperation with both sports and fitness clubs. The local governments are also trying to find partners to fight the health prob-lems of the local population. The segmentation and development of new concepts is important. The non profit sector in Denmark is beginning to organize fitness in a more professional way. The future of private fitness will also depend on their success.
Economic OutlookDomestic demand remains strong and tax cuts are likely to be postponed until 2008 in order to avoid overheating. GDP growth is expected to fall gradually from 3.5% in 2006 to 2.4% in 2007. The extremely tight labor market could stimulate rapid wage inflation, damaging competitiveness and undermining export growth. Inflation (EU harmonized measure) is estimated to rise slightly from 1.9% in 2006 to about 2.0% in 2007. The low unemployment rate will support domestic demand.
Associations/FederationsDansk Fitness & Helse Organisation (DFHO; www.dfho.dk)
38 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
FINLAND
FIN
LAN
D
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationNorthern Europe, bordering the Baltic Sea, Gulf of Bothnia and Gulf of Finland, between Sweden and Russia.
COUNTRY PROFILE
Capital Helsinki
Area (km!) 338,145
Population (million) 5.2
Population per km! 15.38
GDP per capita, current prices in e
33,250 e
Inflation rate (%) 1.60%
Unemployment rate (%) 7.00%
FITNESS IN GENERAL
Fitness Clubs (public) 170
Fitness Clubs (commercial) 430
Members (million) 0.5
Average members per club 833
Penetration rate 9.62%
Average gross price per month
55.00 e
Market Share Top Players (Number of Clubs) only commercial
11.63%
Fitness & Economy
Estimated market size (sales in millions)
330.00 e
Estimated market size incl. secondary spending (sales in millions)
363.00 e
Estimated total employees 5,500
Corporate tax rate 26%
VAT rate (general) 22%
VAT rate (fitness) 8%
TOP 5 PLAYERS
Lady Line 22
Motivus 7
Elixia 7
SATS 7
Finnbody 7
INTERNATIONAL PLAYERS
Elixia
SATS
Source: Deloitte Analysis; CIA World Factbook; EIU; Kuntosali & Fitness
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 39
FINLA
ND
Fitness MarketThe Finnish market has a size of about i330 million, mainly because of the high gross price per month of i55. The penetration rate grew strongly over the last years, due primarily to the increasing number of membership clubs. Almost 10% of the Finnish population takes part in fitness training. Further growth in 2007 is expected, as 30 new clubs will open. In particular, clubs for women will become more popular as segmentation becomes more important in the market.
The Finnish fitness market consists of two sectors. Only 130 clubs (28%) offer member-ship contracts for one year or longer, but they generate 50% of the market’s turnover. The remaining clubs offer day passes (“pay and play”) or memberships for a period from one month to one year.
The public sector is improving the quality of the services offered. This kind of fitness facility is very important in communities with low density of population. There are about 1,200 public fitness facilities, but only about 170 of those have more than 200sqm fitness area.
Economic OutlookA further increase of inflation rate from 1.2% to about 2.0% in 2007 is forecast. Meanwhile a slowdown in GDP to 2.7% is expected, after about 5.2% in 2006. In 2006 the economy expanded rapidly, there were strong gains in productivity and a rise in consumer prices. Strongly rising employment resulted in a lower unemployment rate, 7% in 2006 com-pared to 8% in 2005. Consumer demand will be higher in 2007 and consumer prices are forecast to rise by 1.8% in 2007—slightly less than in 2006.
Associations/FederationsSuomen Kuntoliikuntaliitto ry (www.kunto.fi)
Trade ShowKunto 2007 Gymtec 2007
16-18 March 2007Helsinki Fair Centrewww.finnexpo.fi
15-16 March 2007Tampere Fair Centrewww.tampereenmessut.fi
40 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
FRANCE
FRA
NC
E
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationWestern Europe, between Belgium and Spain, southeast of the UK and between Italy and Spain.
COUNTRY PROFILE
Capital Paris
Area (km!) 547,030
Population (million) 60.9
Population per km! 111.33
GDP per capita, current prices in e
29,212 e
Inflation rate (%) 2.00%
Unemployment rate (%) 8.70%
FITNESS IN GENERAL
Fitness Clubs (public) 450
Fitness Clubs (commercial) 2,532
Members (million) 3.47
Average members per club 1,164
Penetration rate 5.70%
Average gross price per month
50.00 e
Market Share Top Players (Number of Clubs) only commercial
6.00%
FITNESS & ECONOMY
Estimated market size (sales in millions)
2,082.78 e
Estimated market size incl. secondary spending (sales in millions)
2,291.06 e
Estimated total employees NA
Corporate tax rate 33.30%
VAT rate (general) 19.60%
TOP 5 PLAYERS
Moving 68, incl Garden Gym
Amazonia 45
Club Med Gym 22
Fitness First France 9
Forest Hill 8
INTERNATIONAL PLAYERS
Curves
Elixia
Fitness First
Source: Deloitte Analysis; CIA World Factbook; EIU; FHRSA; SNELM
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 41
FRAN
CE
Fitness MarketThe penetration rate in France is low compared to its neighbouring countries and the European average, but country experts are convinced that a period of strong growth is lying ahead. The industry is developing and becoming more professional and efficient. This increases awareness in the public and motivates people to join fitness clubs.
Low budget clubs hold a market share of about 15% and are regarded as having a negative impact on the market. The medium budget clubs dominate the market with a share of 80%. The demographic trend of an older population plays an important role in France, as well as in many other countries, and has a positive impact on the industry.
By now banks and private equity firms did not pay much attention to the French market; therefore a significant expansion is expected once they enter the market.
Economic OutlookGDP growth slowed to about 2% in 2006, and household consumption slowed slightly. Unemployment continued to fall. After several years of anaemic growth, the French economy is enjoying a modest recovery and is expected to grow by about 1.8% in 2007. Private consumption and domestic demand will slightly slow down in 2007 as rising interest rates mean an incentive to save rather than spend. Annual inflation is forecast to fall from about 2% to 1.7% in 2007.
Associations/FederationsFHRSA (www.fhrsa.org); (1 Boulevard Charrier, Aix en Provence, 1300; email: [email protected])
Trade ShowMondial Spa & Beauty
3-5 March 2007Pariswww.mondialspaetbeaute.com
Source: Deloitte Analysis; CIA World Factbook; EIU
42 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
GERMANY
GER
MA
NY
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationCentral Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.
COUNTRY PROFILE
Capital Berlin
Area (km!) 357,021
Population (million) 82.6
Population per km! 231.36
GDP per capita, current prices in e
28,886 e
Inflation rate (%) 1.70%
Unemployment rate (%) 7.10%
FITNESS IN GENERAL
Fitness Clubs (public) 500
Fitness Clubs (commercial) 5,571
Members (million) 5.6
Average members per club 922
Penetration rate 6.78%
Average gross price per month
42.00 e
Market Share Top Players (Number of Clubs) only commercial
8.04%
FITNESS & ECONOMY
Estimated market size (sales in millions)
2,822.40 e
Estimated market size incl. secondary spending (sales in millions)
3,104.64 e
Estimated total employees NA
Corporate tax rate 25%
VAT rate (general) 19.00%
TOP 5 PLAYERS
Injoy 135
Kieser Training 118
Fitness Company (Fitness First)
103
McFit 68
Elixia 24
INTERNATIONAL PLAYERS
Aspria
Fitness First
HealthCity
Holmes Place
Kieser
Swiss Training
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 43
GERM
AN
Y
Fitness MarketThe German commercial fitness market grew by 1.7% in terms of memberships during the year 2006. There are 5,571 commercial and about 500 public clubs, with a training area of above 200 sqm. Taking into consideration an additional 500 Clubs with an area below 200 sqm, in particular women’s fitness clubs, the total number of club members in Germany adds up to approximately 5.6 million. This results in a penetration rate of 6.8%, which is below the European average. The average gross price stayed equal; members on average paid i42 per month to use commercial fitness facilities.
The franchise chain INJOY is the largest operator in Germany in terms of number of clubs while low budget chain McFit Fitness is the market leader in terms of members (416,000 members by the end of 2006). Ten years ago McFit was the “first mover” in the low budget segment and was the fastest growing company in the industry during the last five years. Members pay only i16.90 per month in one of the 68 clubs in the major German cities.
The fitness chain operators were the main drivers of the industry and increased their market share from 30% to 34% based on memberships. Low budget chains hold a share of 20% while medium budget clubs lost members. It is important for this segment to sharpen its profile between the low price offers and the high quality premium clubs.
Due to efforts of the “Fitnessinitiative Deutschland”, members had no special right to quit because of higher prices after the increase in VAT rate effective 1 January 2007. Because of the new VAT rate of 19%, prices are expected to rise this year.
Economic OutlookGDP is forecast to grow by about 1.6% in 2007. The domestic demand and private spending are expected to grow modestly, despite the sharp hike in the rate of VAT. Nevertheless, consumers were encouraged to bring forward some spending to the end of 2006, which is expected to depress private consumption growth in 2007. Inflation is expected to rise to 2.3% in 2007.
Note: The unemployment rate of 7.1% is the estimated rate of the International Labour Association for international comparisons, while the German Federal Employment Office estimates a rate of 10.8%.
Associations/FederationsDeutscher Industrieverband für Fitness und Wellness e.V. (DIFW; www.difw.de)
Deutscher Sportstudio Verband e.V. (DSSV; www.dssv.de)
Verband Deutscher Fitness- und Gesundheitsunternehmen (VDF; www.vdf-fitnessverband.de)
Trade ShowFIBO 2008
10-13 April 2008Essenwww.fibo.de
Source: Deloitte Analysis; CIA World Factbook; EIU
44 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
GREECE
GRE
ECE
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationSouthern Europe, bordering the Aegean Sea, Ionian Sea and the Meditteranean Sea, between Albania and Turkey.
COUNTRY PROFILE
Capital Athens
Area (km!) 131,940
Population (million) 10.7
Population per km! 81.10
GDP per capita, current prices in e
17,393 e
Inflation rate (%) 3.30%
Unemployment rate (%) 9.20%
FITNESS IN GENERAL
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 1,470
Members (million) 0.735
Average members per club 500
Penetration rate 6.87%
Average gross price per month
42.00 e
FITNESS & ECONOMY
Estimated market size (sales in millions)
370.44 e
Estimated market size incl. secondary spending (sales in millions)
407.484
Estimated total employees 17,640
Corporate tax rate 29%
VAT rate (general) 19%
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 45
GREEC
E
Fitness MarketThe Greece fitness market is still in a period of stagnation and some players left the market in the past. The market grew modestly and has a size of about i370 million. The penetration rate of almost 7% is slightly below the European average and there is probably not much potential for further growth. The average monthly membership fee is about i40 and there are about 1,500 clubs in Greece.
Economic OutlookGDP growth slightly accelerated in 2006, from 3.7% to 4.1% in 2006 and is forecast to slow to 3.5% in 2007. But this rate is still well above the EU average of 2.7% in 2006 and 2.2% in 2007. Inflation is expected to fall from 3.3% to 2.8% in 2007. The unemployment rate is still high, but is expected to fall further in 2007.
Associations/FederationsHellenic Bodybuilding and Fitness Federation (www.bodybuilding-eosd.gr)
Trade ShowSportexpo 2007
8-16 September 2007Thessalonikiwww.helexpo.gr
46 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
IRELAND (REPUBLIC OF)
IREL
AN
D
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationWestern Europe, occupying five-sixths of the island of Ireland in the North Atlantic Ocean, west of Great Britain.
COUNTRY PROFILE
Capital Dublin
Area (km!) 70,280
Population (million) 4.1
Population per km! 58.34
GDP per capita, current prices in e
43,024 e
Inflation rate (%) 3.90%
Unemployment rate (%) 4.30%
FITNESS IN GENERAL
Fitness Clubs (public) 105
Fitness Clubs (commercial) 550
Members (million) 0.4
Average members per club 611
Penetration rate 9.76%
Average gross price per month
42.00 e
Market Share Top Players (Number of Clubs) only commercial
4.36%
FITNESS & ECONOMY
Estimated market size (sales in millions)
201.60 e
Estimated market size incl. secondary spending (sales in millions)
221.76 e
Estimated total employees 9,000
Corporate tax rate 12.5%
VAT rate (general) 21%
TOP 5 PLAYERS
Jackie Skellys 8
Kingfisher 5
Crunch Fitness 4
Mc Eniff Hotels 4
Westwood 3
Source: Deloitte Analysis; CIA World Factbook; EIU; IIAM
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 47
IRELAN
D
Fitness MarketThere was about 10% growth in the Irish market in terms of clubs and members. The penetration rate is close to 10%. The average gross price per month stayed equal. Therefore the estimated market size grew from i182 million to i202 million.
Domestic chains dominate the small Irish market and the top five players hold less than 5% of the market. The new trend in the industry is “fast fitness chains” like Cuts for men and Curves for women, which grew rapidly. Besides these small facilities with limited services, the spa and wellness sector and facilities in hotels became more important. About 20 new private commercial clubs, about 30 new hotel leisure clubs/spas and an additional five public facilities opened in 2006.
Economic OutlookIreland’s GDP growth was high in 2006 (6.2%) and is expected to slow down to 5.3% in 2007. The reason for this development is a lower private consumption in the second half of 2006. The latter is expected to rise in 2007, mainly driven by employment growth, wage increases and tax cuts. Inflation is expected to ease to about 3.4%. The competition in the health insurance market is likely to be reduced as the second-largest insurer announced that it will leave the market.
Associations/FederationsInstitute of Leisure and Amenity Management Ireland Ltd. (ILAM; www.ilam.ie)
Trade ShowILAM Ireland Annual Conference & Exhibition
17-18 October 2007Knightsbrook Hotel & Golf Resort (& Spa), Trim, Co. Meathwww.ilam.ie
48 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
ITALY
ITA
LY
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationSouthern Europe, a peninsula extending into the central Mediterranean Sea, southeast of France.
COUNTRY PROFILE
Capital Rome
Area (km!) 301,230
Population (million) 58.1
Population per km! 192.88
GDP per capita, current prices in e
25,318 e
Inflation rate (%) 2.10%
Unemployment rate (%) 7.00%
FITNESS IN GENERAL
Fitness Clubs (public) 2,300
Fitness Clubs (commercial) 6,000
Members (million) 5.52
Average members per club 665
Penetration rate 9.5%
Average gross price per month
45.00 e
Market Share Top Players (Number of Clubs) only commercial
1.18%
FITNESS & ECONOMY
Estimated market size (sales in millions)
2,980.53 e
Estimated market size incl. secondary spending (sales in millions)
3,278.58 e
Estimated total employees 80,000
Corporate tax rate 33%
VAT rate (general) 20%
TOP 5 PLAYERS
20 hours 19
Fitness First 17
Caroli Health Club 14
Dabliu 13
Virgin Active 8
INTERNATIONAL PLAYERS
Curves
Fitness First
Virgin Active
Source: Deloitte Analysis; CIA World Factbook; EIU; FIAF; Il Nuovo Club
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 49
ITALY
Fitness MarketThe penetration rate in Italy grew modestly from 9.3% to 9.5%. This results in a total number of members of 5.5 million. The average gross price per month did not change compared to last year which means a total market size of about i3 billion. There are about 6,000 commercial fitness clubs in Italy, but the top five players only account for about 1% of the market in terms of clubs; the chains altogether account for not more than 2%.
Demography has a positive impact on the industry and plays an important role, as does government health policy. The provision of low budget clubs is regarded as having a negative impact, this segment holds a market share of about 20%. There are no initiatives of health insurance companies yet, so there is some potential to increase public awareness of the benefits of joining fitness clubs and wellness facilities.
Economic OutlookThe strong economic activity at the end of 2006 is expected to provide some momentum going into 2007. GDP growth is forecast to dip from 2% in 2006 to 1.5% in 2007. The inflation rate is expected to ease slightly from 2.1% to just below 2%. The unemployment rate fell by the end of the year and wages rose at the same time, so private consumption will rise in 2007; an increase of about 2.2% is expected.
Associations/FederationsEurowellness A.N.I.F. (www.eurowellness.it)
Federazione Italiana Aerobicana e Fitness FIAF; www.fiaf.it)
Federazione Italiana Fitness (FIF; www.fif.it)
Trade ShowForum Il Nuovo Club Rimini Wellness
22-24 February 2008 Verona www.ncforum.com
Riminiwww.rimini-wellness.it
50 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
NETHERLANDS
NET
HER
LAN
DS
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationWestern Europe, bordering the North Sea, between Belgium and Germany.
COUNTRY PROFILE
Capital Amsterdam
Area (km!) 41,526
Population (million) 16.5
Population per km! 397.34
GDP per capita, current prices in e
32,400 e
Inflation rate (%) 1.40%
Unemployment rate (%) 5.50%
FITNESS IN GENERAL
Fitness Clubs (public) 100
Fitness Clubs (commercial) 1,700
Members (million) 2.71
Average members per club 1,503
Penetration rate 16.40%
Average gross price per month
40.00 e
Market Share Top Players (Number of Clubs) only commercial
7.82%
Fitness & Economy
Estimated market size (sales in millions)
1,298.88 e
Estimated market size incl. secondary spending (sales in millions)
1,428.77 e
Estimated total employees 24,000
Corporate tax rate 25.0%
VAT rate (general) 19%
VAT rate (fitness) 6%
TOP 5 PLAYERS
HealthCity 41 (incl Basic)
LACO 31
Achmea Healthcenters 22
Fitness First 20
Fitland 19
INTERNATIONAL PLAYERS
Curves
David Lloyd
Fitness First
Source: Deloitte Analysis; CIA World Factbook; EFAA; EIU; Fit!Vak; The Sports Leisure Group
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 51
NETH
ERLAN
DS
Fitness Market16.4% of the Dutch population participated in fitness training within the last twelve months. This means the highest penetration rate of all European countries and results in a market size of about i1.3 billion. The average monthly membership fee is about i40.
A new trend is the focus on specific groups like diabetics etc. which can participate in specialised health and fitness programmes. The provision of low budget operators is regarded as having a positive impact on the industry and is expected to gain market share in 2007. The market is still dominated by the medium segment.
The largest player in the Dutch market is HealthCity, which operates 41 clubs including its Basic line. HealthCity is Dutch based and has expanded its operations to Belgium and Germany. One of the key international players in the market is Fitness First.
Economic OutlookAfter a weak performance in 2005 the Dutch economy has moved into a period of much stronger growth. Despite the slowdown in Germany, GDP growth in the Netherlands is expected to remain strong at about 2.6% in 2007 (after about 2.9% in 2006). Inflation is forecast to stay below 2% during the year. Consumer and business sentiment remain strong, consumer confidence has been on the rise since 2005. Private consumption growth has picked up in 2006 and will accelerate further in 2007.
Associations/FederationsFit!Vak (www.fitvak.com)
Trade ShowFitnessvakdagen
12-14 October 2007Utrecht
52 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
NORWAY
NO
RWAY
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationNorthern Europe, bordering the North Sea and the North Atlantic Ocean, west of Sweden.
COUNTRY PROFILE
Capital Oslo
Area (km!) 324,220
Population (million) 4.6
Population per km! 14.19
GDP per capita, current prices in e
59,240 e
Inflation rate (%) 2.30%
Unemployment rate (%) 3.50%
FITNESS IN GENERAL
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 470
Members (million) 0.545
Average members per club 1,160
Penetration rate 11.85%
Average gross price per month
46.00 e
Market Share Top Players (Number of Clubs) only commercial
27.23%
Fitness & Economy
Estimated market size (sales in millions)
300.84 e
Estimated market size incl. secondary spending (sales in millions)
330.92 e
Estimated total employees 7,100
Corporate tax rate 28%
VAT rate (general) 25%
VAT rate (Fitness) 0%
TOP 5 PLAYERS
Spenst 39
SATS 37
Elixia 24 (incl Sports Club)
Nautilus 17
3T 11
INTERNATIONAL PLAYERS
Elixia
Friskis&Svettis
Nautilus
SATS
Source: Deloitte Analysis; CIA World Factbook; EIU; Fysiopartner; Gold’s Gym
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 53
NO
RWAY
Fitness MarketAlmost 12% of the Norwegian population use fitness facilities which means that Norway is one of the top four markets in Europe. The average monthly membership fee of i46 results in a market size of about i300 million.
The low budget segment does not play an important role in Norway and is not expected to grow as much as in other European countries. In general the market is expected to grow—new clubs will open and existing facilities will increase their number of members. The competition between the clubs, which is regarded as medium at the moment, will become more intense. The demographic trend of an older society has a strong positive effect on the fitness industry.
The Norwegian fitness market is dominated by a small number of fitness chains. The market share of the top five players is 27%—the highest percentage of all analysed countries. Spenst, the franchise license of Sweden’s SATS, is the largest player in Norway with 39 clubs operated by various franchisees. SATS operates another 37 clubs. Elixia is another major international player in the market. Elixia acquired Sports Club in 2006 and operated 24 clubs as of the end of 2006.
Economic OutlookStrength of consumer confidence and employment growth in 2006 led to a forecast of 3.3% growth in private consumption in 2007. The economic boom is expected to continue and GDP is forecast to grow by 2.5%. The unemployment rate fell to 3.5% and wages are expected to rise further. Inflation will rise slightly to 2.6% in 2007 and there will be an upward pressure on consumer prices.
Associations/FederationsNorges Treningssenter Forbund (NTF; www.treningsnett.no)
54 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
PORTUGAL
PORT
UG
AL
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationSouthwestern Europe, bordering the North Atlantic Ocean, west of Spain.
COUNTRY PROFILE
Capital Lisbon
Area (km!) 92,391
Population (million) 10.6
Population per km! 114.73
GDP per capita, current prices in e
14,434 e
Inflation rate (%) 3.10%
Unemployment rate (%) 7.60%
FITNESS IN GENERAL
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 1,300
Members (million) 0.55
Average members per club 423
Penetration rate 5.19%
Average gross price per month
48.00 e
Market Share Top Players (Number of Clubs) only commercial
6.62%
Fitness & Economy
Estimated market size (sales in millions)
316.80 e
Estimated market size incl. secondary spending (sales in millions)
348.48 e
Estimated total employees 14,000
Corporate tax rate 25%
VAT rate (general) 21%
TOP 5 PLAYERS
Vivafit 57
Ibéria 14
Solinca Health & Fitness 8
Akademia 4
Premier Fitness Club 3
INTERNATIONAL PLAYERS
Solinca Health & Fitness
Source: Deloitte Analysis; CIA World Factbook; EIU; IFAD
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 55
PORTU
GA
L
Fitness MarketCompared to Spain the penetration rate in Portugal is very low; only about 5% of the population use fitness facilities. The demographic trend of an older society plays an important role in Portugal and has a positive impact on the health and fitness industry.
The low budget segment holds a big share of the market but is expected to lose market share in 2007. The average monthly membership fee of i48 is fairly high and not expected to rise any further. After stagnation in 2005 the market grew by about 10% in 2006 and now has a size of about i315 million.
The market is very fragmented, only 2% of the market is held by the five top players. The number of clubs is very high compared to the number of members which results in an average of about 423 members per club. Nevertheless new clubs are expected to open.
Private health and fitness clubs suffer from a disadvantage in taxation. While public clubs do not pay any value added tax, private clubs have to pay the regular 21% VAT tax rate.
Economic OutlookOn a year-on-year basis GDP growth accelerated to 1.5%. Indicators of consumer confidence have shown some signs of modest recovering. Despite stronger employment growth the pace of recovery will be constrained by tax increases and high household indebtedness. Inflation is forecast to average 2.4% in 2007. Indirect tax increases will put some pressure on domestic demand, which will remain weak.
Associations/FederationsAssociacao des Empresas de Ginasios e Academias de Portugal (AGAP; www.agap.pt)
Trade ShowDespoLazer
5-6 May 2007Lisbonwww.manz.pt
Source: Deloitte Analysis; CIA World Factbook; EIU
56 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
SPAIN
SPA
IN
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationSouthwestern Europe, bordering the Bay of Biscay, North Atlantic Ocean, Mediterranean Sea, southwest of France.
COUNTRY PROFILE
Capital Madrid
Area (km!) 504,782
Population (million) 45.1
Population per km! 89.35
GDP per capita, current prices in e
21,752 e
Inflation rate (%) 3.50%
Unemployment rate (%) 8.10%
Fitness in General
Fitness Clubs (public) 1,600
Fitness Clubs (commercial) 3,100
Members (million) 6.58
Average members per club 1,401
Penetration rate 14.60%
Average gross price per month
37.00 e
Market Share Top Players (Number of Clubs) only commercial
3.58%
Fitness & Economy
Estimated market size (sales in millions)
2,923.56 e
Estimated market size incl. secondary spending (sales in millions)
3,215.92 e
Estimated total employees 30,000
Corporate tax rate 25%
VAT rate (general) 16%
VAT rate (Fitness) 7%
TOP 5 PLAYERS
Body Factory 35
Fitness First 28
Fitness Place 21
UBAE 14
O2 Centro 13
INTERNATIONAL PLAYERS
Curves
Fitness First
LA Fitness
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 57
SPAIN
Fitness MarketSpain has, with 14.6%, the second highest penetration rate in Europe. Combined with a comparatively low average monthly membership fee of i37 this results in a market size of i2.9 billion. Thus the Spanish health and fitness market is the third largest in Europe.
Despite its size the market is very fragmented and dominated by single clubs and small chains. The five top players hold less than 4% of the commercial market. Body Factory operates 35 clubs and is the largest chain, followed by the British chain Fitness First. The Curves chain operates 154 small clubs in Spain which focus on women.
Economic OutlookA tax reform package is taking effect in 2007. The economy is forecast to slow gradually from 3.5% growth in 2006 to about 2.4%. Consumer demand remained strong in 2006 but might decelerate in 2007. Inflation has fallen sharply to 3.5% and is now closer to the EU average. Even though the Spanish economy is expected to land softly there is a growing risk of the boom turning to bust.
Associations/FederationsFederación Espanola de Fisicoculturismo y Fitness (www.aef-spain.com)
Trade ShowFitness 2007
26-29 April 2007Madridwww.fitness.ifema.es
58 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
SWEDEN
SWED
EN
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationNorthern Europe, bordering the Baltic Sea, Gulf of Bothnia, Kattegat and Skagerrak, between Finland and Norway.
COUNTRY PROFILE
Capital Stockholm
Area (km!) 449,964
Population (million) 9.1
Population per km! 20.22
GDP per capita, current prices in e
33,261 e
Inflation rate (%) 1.30%
Unemployment rate (%) 5.60%
FITNESS IN GENERAL
Fitness Clubs (public) 20
Fitness Clubs (commercial) 800
Members (million) 1.3
Average members per club 1,585
Penetration rate 14.29%
Average gross price per month
38.00 e
Market Share Top Players (Number of Clubs) only commercial
20.75%
Fitness & Economy
Estimated market size (sales in millions)
592.80 e
Estimated market size incl. secondary spending (sales in millions)
652.08 e
Estimated total employees 10,000
Corporate tax rate 28%
VAT rate (general) 25%
TOP 5 PLAYERS
Nautilus Gym 82
SATS 42
World Class 20
Fitness 24 seven 12
Feelgood 10
INTERNATIONAL PLAYERS
World Class
Source: Deloitte Analysis; CIA World Factbook; EIU; YLAB
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 59
SWED
EN
Fitness MarketDue to a change in data sources the growth in the Swedish market seems bigger than it actually was. The penetration rate is one of the highest in Europe; more than 14% of the Swedish population engage in fitness training. The average monthly membership fee of i38 results in a market size of about i590 million.
The low budget segment is growing while the rest of the market basically stagnates. The medium budget segment accounts for about 80% of the market but is losing market share to the low budget clubs. The number of members per club is high compared to many other European countries—more than 1,500 members on average.
A major player in the Swedish market is Friskis & Svettis. The chain is operating as a non-profit association and offers fitness facilities and group fitness all over Scandinavia. Overall the association has about 416,000 members.
Economic OutlookGDP growth is forecast to decelerate gradually over the year 2007, from an estimated 4.5% in 2006 to 3.5% in 2007. Inflation might rise to about 1.7% in 2007 but should remain at a modest level well below the EU average. Strong private consumption reflects a rapidly improving labour market and is the main driver of the economy. This devel-opment is expected to continue in 2007.
60 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
SWITZERLANDFINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
SWIT
ZERL
AN
D
LocationCentral Europe, east of France, north of Italy, south of Germany.
COUNTRY PROFILE
Capital Bern
Area (km!) 41,290
Population (million) 7.5
Population per km! 181.64
GDP per capita, current prices in e
38,903 e
Inflation rate (%) 1.10%
Unemployment rate (%) 3.30%
FITNESS IN GENERAL
Fitness Clubs (public) 500
Fitness Clubs (commercial) 550
Members (million) 0.5
Average members per club 476
Penetration rate 6.67%
Average gross price per month
42.00 e
Market Share Top Players (Number of Clubs) only commercial
14.18%
Fitness & Economy
Estimated market size (sales in millions)
252.00 e
Estimated market size incl. secondary spending (sales in millions)
277.20 e
Estimated total employees 10,500
Corporate tax rate 8,5% federal tax rate plus region-al rates, totalling 25% in average
VAT rate (general) 7.6%
TOP 5 PLAYERS
Kieser Training 19
Migros 17
Silhouette 15
TC 18
Activ Fitness 9
INTERNATIONAL PLAYERS
Curves
Holmes Place
Injoy
Source: Deloitte Analysis; CIA World Factbook; EIU; SFCV
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 61
SWITZERLA
ND
Fitness MarketThere was modest growth in the Swiss fitness market in 2006. About 50 new commercial clubs opened and there was an increase in memberships of about 5%. The market size is about i250 million. Further growth is expected in 2007, in terms of clubs as well as in gross price.
There is a growing need for fitness in Switzerland and the industry, especially the association SFCV, is trying to improve the public image. There is a disadvantage of fitness to other sports because it is not regarded as health-oriented. Therefore no tax is imposed on “sports teaching lessons” like tennis while fitness instruction is not tax free. On the other hand health insurance companies cover up to 50% of the fitness member-ship fee of their insureds.
In 2006 the low budget segment developed and quickly gained market share. The industry regards this new segment as negative, mainly because it dilutes the quality of fitness in general. On the other hand the operators in this segment spend significant money on advertising and raising public awareness of fitness in general.
Swiss based franchise chain Kieser Training is the leading operator in Switzerland, but most of its clubs are currently located in Germany. There are only a few foreign players in the Swiss market, but further international penetration is expected. The penetration rate of almost 7% can be increased, according to country experts, which means an interesting market for international investments.
Economic OutlookGDP is estimated to have increased by 2.9% in 2006 and will slow down in 2007 to about 2.2%. Inflationary pressures will be low. Business confidence has weakened slightly but remains strong. Employment growth has accelerated. Private consumption is forecast to grow by about 2% in 2007, helped by a combination of moderate real wage and employment growth. The average annual inflation rate is expected to be about 1% in 2007.
Associations/FederationsSchweizerischer Fitness Center Verband (SFCV, www.sfcv.ch)
Trade ShowFitMess 2007
5-6 May 2007Zurichwww.fitmess.com
62 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
UNITED KINGDOM
UN
ITED
KIN
GD
OM
FINLAND
AUSTRIA
ITALY
SPAIN
SWEDEN
NORWAY
GERMANY
FRANCE
PORTUGAL
HUNGARY
DENMARK
POLAND
U. K.
CZECH
SLOVAKIA
GREECE
ANDORRA
NETHERLANDS
BELGIUM
IRELAND
SERBIA
ALBANIA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
Mediterranean Sea
Bay of Biscay
Gulfof
Bothnia
NorthSea
TyrrhenianSea
IonianSea
Aegean
English Channel
Adriatic
BalticSea
LocationWestern Europe, between the North Atlantic Ocean and the North Sea, northeast of France.
COUNTRY PROFILE
Capital London
Area (km!) 244,820
Population (million) 60.6
Population per km! 247.53
GDP per capita, current prices in e
30,748 e
Inflation rate (%) 2.30%
Unemployment rate (%) 2.90%
FITNESS IN GENERAL
Fitness Clubs (combined public and commercial)
5,714
Members (million) 7.16
Average members per club 1,253
Penetration rate 11.90%
Average gross price per month
62.00 e
Market Share Top Players (Number of Clubs) only commercial
7.56%
Fitness & Economy
Estimated market size (sales in millions)
4,725.60 e
Estimated market size incl. secondary spending (sales in millions)
5,198.16 e
Estimated total employees 51,900
Corporate tax rate 30%
VAT rate (general) 17.5%
TOP 5 PLAYERS
Fitness First 160
LA Fitness 88
Virgin Active 72
David Lloyd Clubs 59
Esporta 53
Source: Deloitte Analysis; CIA World Factbook; EIU; FIA 2007 State of the Fitness Industry Report compiled by The Leisure Database Company
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association 63
UN
ITED K
ING
DO
M
Fitness MarketThe UK continues to lead the way across the EU health and fitness industry with a move toward brand consolidation into a smaller number of larger companies as the market reaches maturity.
The UK health & fitness industry consists of 5,714 private and public clubs and employs 51,900 people in the private sector. Citizens across the UK continue to become aware of the need to exercise. One trend is the emergence of corporate wellness provision often with gym facilities within the work place.
Government effort will focus on persuading the unfit to take more exercise, with obesity and inactivity being a concern; 51.6% of the population are currently doing less exercise than the government’s recommended 150 minutes per week. With the 2012 Olympic Games coming to London, those people have a renewed interest to focus on activity and sports.
Average membership fees have risen to i62 per month in private clubs, and are expected to increase further in 2007. London and the South East have the highest number of members in private clubs with 20% and 14% of total market respectively.
Economic OutlookGDP growth is expected to slow to 2.4 % in 2007. The great imbalance is the level of household debt, which, at 150% of disposable income has reached a record high. Immigration from Central and Eastern Europe has helped to support private consumption since 2004, but financial strains have continued to increase as the cost of borrowing has risen. The outlook for business investment is more positive. Balance sheets are strong, profitability is high and business confidence remains high.Source: Deloitte UK
Associations/FederationsFitness Industry Association (FIA; www.fia.org.uk)
Trade ShowLeisure Industry Week
25-27 September 2007Birminghamwww.liw.co.uk
64
Emer
ging
Eur
opea
n M
arke
ts O
verv
iew
IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
New Members in the EU Candidate Countries Already a Member in the EU
Emerging European MarketsIn this chapter we look at the key developments in some of the emerging European markets, which include eight of the ten countries, which joined the EU in 2004, plus Russia and Turkey.
By now, the European Union embraces 27 countries and more than 490 million people. Although the enlargement of 2004 is stated as an economic success—e.g. Slovenia already met all criteria for entering the EMU and introduced the Euro in January 2007—EU 27 faces enormous challenges. However, this unified market provides various opportunities for fitness club operators and investors.
As the H&F market is still at an early stage of development in the new EU member states as well as Russia and Turkey, they are not included in the main body of this report, but separately treated. However, given the demographic size of these countries and the expected economic growth potential, these markets offer profitable prospective and are worth a closer look.
Desktop overview of Eastern European Countries
SPAIN
ICELAND
SWEDEN
FRANCE
PORTUGAL
U. K.
ANDORRA
BELGIUM
IRELAND
Mediterranean Sea
NorthAtlanticOcean
Bay of Biscay
NorthSea
NorwegianSea
English Channel
RUSSIA
FINLAND
NORWAYGulfof
Bothnia
AUSTRIA
ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINECZECH
SLOVAKIA
GREECE
CYPRUS
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LITHUANIA
LATVIA
ESTONIA
LUX.
MONTENEGRO
BOSNIA
CROATIASLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
EMERG
ING
EURO
PEAN
MA
RKETS
65IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
LocationCentral Europe, southeast of Germany, north of Austria.
COUNTRY PROFILE
Capital Prague
Area (km!) 78,866
Population (million) 10.2
Population per km! 129.33
GDP per capita, current prices in e
8,814 e
Inflation rate (%) 2.70%
Unemployment rate (%) 8.40%
Fitness in General
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 450
Members (million) 0.12
Average members per club 267
Penetration rate 1.18%
Average gross price per month
35.00 e
Market Share Top Players (Number of Clubs) only commercial
3.33%
Fitness & Economy
Estimated market size (sales in millions)
50.40 e
Estimated market size incl. secondary spending (sales in millions)
55.44 e
Estimated total employees 3,000
TOP 5 PLAYERS
BBC 7
Factory pro 3
World Class 3
Holmes Place 1
Gold’s Gym 1
International Players
Gold’s Gym
Holmes Place
World Class
CZECH REPUBLIC
AUSTRIA
ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
Source: Deloitte Analysis; CIA World Factbook; Face Czech
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ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
COUNTRY PROFILE
Capital Tallinn
Area (km!) 45,226
Population (million) 1.3
Population per km! 28.74
GDP per capita, current prices in e
7,921 e
Inflation rate (%) 4.40%
Unemployment rate (%) 4.50%
Fitness in General
Fitness Clubs (public) 20
Fitness Clubs (commercial) 50
Members (million) 0.015
Average members per club 214
Penetration rate 1.15%
Average gross price per month
45.00 e
Market Share Top Players (Number of Clubs) only commercial
12.00%
Fitness & Economy
Estimated market size (sales in millions)
8.10 e
Estimated market size incl. secondary spending (sales in millions)
8.91 e
Estimated total employees 620
TOP 4 PLAYERS
Arctic Club 2
Status Club 2
Coral Club 1
PlanetSport 1
LocationEastern Europe, bordering the Baltic Sea and Gulf of Finland, between Latvia and Russia.
ESTONIA
Source: Deloitte Analysis; CIA World Factbook; Planet Fitness
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ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
AUSTRIA
ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
LocationCentral Europe, northwest of Romania, south of Slovakia.
HUNGARY
TOP 5 PLAYERS
Alexandra 3
Emotion Fitness 3
A1 2
Gold’s Gym 1
World Class 1
International Players
Emotion Fitness
Gold’s Gym
World Class
COUNTRY PROFILE
Capital Budapest
Area (km!) 93,030
Population (million) 10.0
Population per km! 107.49
GDP per capita, current prices in e
8,551 e
Inflation rate (%) 3.70%
Unemployment rate (%) 7.40%
Fitness in General
Fitness Clubs (public) ---
Fitness Clubs (commercial) 250
Members (million) 0.15
Average members per club 600
Penetration rate 1.50%
Average gross price per month
32.00 e
Market Share Top Players (Number of Clubs) only commercial
4.00%
Fitness & Economy
Estimated market size (sales in millions)
57.60 e
Estimated market size incl. secondary spending (sales in millions)
63.36 e
Estimated total employees 3,800
Source: Deloitte Analysis; CIA World Factbook; Emotion Fitness
Source: Deloitte Analysis; CIA World Factbook
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ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
LocationEastern Europe, bordering the Baltic Sea, between Estonia and Lithuania.
LATVIA
COUNTRY PROFILE
Capital Riga
Area (km!) 64,589
Population (million) 2.3
Population per km! 35.61
GDP per capita, current prices in e
5,302 e
Inflation rate (%) 6.80%
Unemployment rate (%) 6.50%
Fitness in General
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 100
Members (million) 0.07
Average members per club 700
Penetration rate 3.04%
Average gross price per month
32.00 e
Market Share Top Players (Number of Clubs) only commercial
8.00%
Fitness & Economy
Estimated market size (sales in millions)
26.88 e
Estimated market size incl. secondary spending (sales in millions)
29.57 e
Estimated total employees 550
TOP 3 PLAYERS
Atletica 4
City Fitness 3
Jokerclubs 1
Source: Deloitte Analysis; CIA World Factbook
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HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
LITHUANIA
COUNTRY PROFILE
Capital Vilnius
Area (km!) 65,200
Population (million) 3.6
Population per km! 55.21
GDP per capita, current prices in e
6,342 e
Inflation rate (%) 3.80%
Unemployment rate (%) 5.70%
Fitness in General
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 40
Members (million) 0.02
Average members per club 500
Penetration rate 0.56%
Average gross price per month
32.00 e
Market Share Top Players (Number of Clubs) only commercial
22.5%
Fitness & Economy
Estimated market size (sales in millions)
7.68 e
Estimated market size incl. secondary spending (sales in millions)
8.45 e
Estimated total employees 750
TOP 4 PLAYERS
Impulsas 5
Telekom 2
Forum 1
World Fitness 1
AUSTRIA
ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
LocationEastern Europe, bordering the Baltic Sea, between Latvia and Poland.
Source: Deloitte Analysis; CIA World Factbook
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ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
LocationCentral Europe, east of Germany, north of Czech Republic.
COUNTRY PROFILE
Capital Warsaw
Area (km!) 312,685
Population (million) 38.5
Population per km! 123.13
GDP per capita, current prices in e
6,618 e
Inflation rate (%) 1.30%
Unemployment rate (%) 14.90%
Fitness in General
Fitness Clubs (public) n/a
Fitness Clubs (commercial) 750
Members (million) 0.22
Average members per club 293
Penetration rate 0.57%
Average gross price per month
35.00 e
Market Share Top Players (Number of Clubs) only commercial
1.73%
Fitness & Economy
Estimated market size (sales in millions)
92.40 e
Estimated market size incl. secondary spending (sales in millions)
101.64 e
Estimated total employees 14,000
TOP 4 PLAYERS
Gymnasion 7
Nautilus 2
Shape 2
Swedish World Class 2
International Players
Gold’s Gym will enter the market in fall 2007
Holmes Place
Swedish World Class
POLAND
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ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
LocationEastern Europe and northern Asia.
RUSSIA
AUSTRIA
ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
COUNTRY PROFILE
Capital Moscow
Area (km!) 17,025,200
Population (million) 142.9*
Population per km! 8.39
GDP per capita, current prices in e
3,878 e
Inflation rate (%) 9.80%
Unemployment rate (%) 6.60%
Fitness in General
Fitness Clubs (public) N/A
Fitness Clubs (commercial) 2,000
Members (million) 1.00
Average members per club 500
Penetration rate 3.44%*
Average gross price per month
80.00 e*
Market Share Top Players (Number of Clubs) only commercial
4.50%
Fitness & Economy
Estimated market size (sales in millions)
960.00 e
Estimated market size incl. secondary spending (sales in millions)
1,056.00 e
Estimated total employees 33,000
TOP 5 PLAYERS
World Class 29
Planet Fitness 27
Strata Partners 25
Gold’s Gym 5
Reebok 4
International Players
Gold’s Gym
Reebok
Source: Deloitte Analysis; CIA World Factbook
* 14 largest cities w/ >1m: 29.1
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ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
SLOVAKIA
LocationCentral Europe, south of Poland, north of Hungary,
COUNTRY PROFILE
Capital Bratislava
Area (km!) 48,845
Population (million) 5.40
Population per km! 110.55
GDP per capita, current prices in e
6,567 e
Inflation rate (%) 4.40%
Unemployment rate (%) 10.20%
Fitness in General
Fitness Clubs (public) 50
Fitness Clubs (commercial) 150
Members (million) 0.025
Average members per club 167
Penetration rate 0.46%
Average gross price per month
30.00 e
Market Share Top Players (Number of Clubs) only commercial
4.00%
Fitness & Economy
Estimated market size (sales in millions)
9.00 e
Estimated market size incl. secondary spending (sales in millions)
9.90 e
Estimated total employees 1,200
TOP 5 PLAYERS
Fitness Centrum 4
EUROPA Fitness 1
Golem Club 1
Impulse Fitness 1
MAXFIT Health & Fitness 1
Source: Deloitte Analysis; CIA World Factbook; MAXFIT Health & Fitness
Source: Deloitte Analysis; CIA World Factbook
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ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
LocationCentral Europe, eastern Alps bordering the Adriatic Sea, between Austria and Croatia.
SLOVENIA
AUSTRIA
ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIASLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
COUNTRY PROFILE
Capital Ljubljana
Area (km!) 20,273
Population (million) 2.0
Population per km! 98.65
GDP per capita, current prices in e
14,230 e
Inflation rate (%) 2.40%
Unemployment rate (%) 9.60%
Fitness in General
Fitness Clubs (public) NA
Fitness Clubs (commercial) 25
Members (million) 0.008
Average members per club 320
Penetration rate 0.40%
Average gross price per month
27.00 e
Market Share Top Players (Number of Clubs) only commercial
12.00%
Fitness & Economy
Estimated market size (sales in millions)
2.59 e
Estimated market size incl. secondary spending (sales in millions)
2.85 e
Estimated total employees 405
TOP PLAYER
Sportni Zavod Nova Gorica
3
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AUSTRIA
ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
LocationSoutheastern Europe and southwestern Asia, between Bulgaria and Georgia, Greece and Syria.
TURKEY
COUNTRY PROFILE
Capital Ankara
Area (km!) 780,580
Population (million) 70.4*
Population per km! 90.19
GDP per capita, current prices in e
3,847 e
Inflation rate (%) 9.80%
Unemployment rate (%) 10.20%
Fitness in General
Fitness Clubs (public) 30
Fitness Clubs (commercial) 1,300
Members (million) 0.35
Average members per club 263
Penetration rate 1.72%
Average gross price per month
45.00 e
Market Share Top Players (Number of Clubs) only commercial
0.85%
Fitness & Economy
Estimated market size (sales in millions)
189.00 e
Estimated market size incl. secondary spending (sales in millions)
207.90 e
Estimated total employees 11,000
TOP 5 PLAYERS
Sports International 5
Hillside 2
Maya 2
Essporto 1
Mars 1
Source: Deloitte Analysis; CIA World Factbook; EKS
* 11 largest cities w/ >0.5m: 20.4
75IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
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ITALY
GERMANY
HUNGARY
ROMANIA
BULGARIA
TURKEY
DENMARK
POLAND
BYELARUS
UKRAINE
RUSSIA
CZECH
SLOVAKIA
GREECE
NETH.
SERBIA
ALBANIA
MALTA
MOLDOVA
LUX.
MONTENEGRO
BOSNIA
CROATIA
SLOVENIA
SWITZERLAND
MACEDONIA
TyrrhenianSea
IonianSea
Aegean
BlackSea
Adriatic
BalticSea
CYPRUS
LITHUANIA
LATVIA
ESTONIA
About DeloitteDeloitte OverallDeloitte is one of the leading audit and consulting firms in the world, offering a com-prehensive range of services including audit, tax, consulting and corporate finance with over 150,000 employees in almost 140 countries world-wide.
Deloitte Health & FitnessDeloitte Health & Fitness has been specializing in services in the health and fitness sector since 1990. The Health & Fitness team is predominantly recruited from employees of the Corporate Finance service line, but co-operates closely with the other three service lines of Audit, Tax and Consulting to deliver value to its clients. Due to the fitness industry’s increased demand for professional services, Deloitte Health & Fitness now offers a wide range of services including:• Corporate Finance Advisory• Business plan preparation and review• Advising equity and debt investors• Financial/Tax Due Diligence• Commercial Due Diligence• Market and location analysis• Audit and tax advice
Furthermore, Deloitte experts from the Health & Fitness competence centre in Germany and the UK co-operate closely with the leading associations in Germany, the UK and internationally.
Deloitte counts among its clients the largest and most influential operators of fitness clubs and investors worldwide.
In order to continue to increase the transparency in the German and UK health and fitness market, Deloitte regularly benchmarks the performance of the sector. In Germany we track performance on a quarterly basis whilst in the UK we have launched a pioneering monthly survey of Health Club profitability.
About D
eloitte
76 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Deloitte ContactsContinental EuropeKarsten Hollasch, Schwannstrasse 6Partner 40476 Düsseldorf, Germany Tel +49 (0) 211 8772 3566 Fax +49 (0) 211 8772 2145 E-mail [email protected]
Nordic MarketLars Berg-Nielsen, H.C. Andersen Boulevard 2 Partner Partner DK 1780 Copenhagen V, Denmark Tel + 45 337 633 33 Fax + 45 337 633 34 Email [email protected]
United Kingdom/IrelandAdrian Balcombe, Athene PlacePartner 66 Shoe Lane London, EC4A 3BQ, United Kingdom Tel +44 (0) 207 007 2944 Fax +44 (0) 207 007 2446 E-mail [email protected]
Asia/Pacific Mike Braun, 10/ F Bund CenterPartner 222 Yan An Road East Shanghai 200002, P.R. China Tel +86 (0)21 6141 1658 Fax +86 (0)21 6335 0085 E-mail: [email protected]
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About IHRSAFounded in 1981, The International Health, Racquet & Sportsclub Association (IHRSA) is a not-for-profit trade association representing health & fitness facilities, gyms, spas, sports clubs and suppliers worldwide. It’s mission is: To grow, protect and promote the health and fitness industry, and to provide its members with benefits that will help them be more successful. IHRSA has set an industry-wide goal of reaching 120-million club members worldwide by the year 2010.
Membership is open to fitness, racquet and athletic facilities. Associate memberships and Strategic Partnerships are available to suppliers.
Headquartered in Boston, Massachsuetts, the association currently has more than 8,000 member clubs in 70 countries, and 615 associate members.
IHRSA in EUROPEIHRSA has more than 2,000 members in Europe, and has established partnerships with many federations and companies. Hans Muench, IHRSA’s European Director effective 1 January 2008, is based in Munich Germany.
In Boston, IHRSA’s international operations staff includes: Cathy McNeil, Vice President ([email protected]); Alison O’Kane, Assistant Vice President ([email protected]); Jacqueline Antunes, Manager ([email protected]); and Blakely Sullivan, Manager ([email protected]).
Research and EducationAs one of the world’s leading authorities on the commercial health and sportsclub industry, IHRSA is the source of some of the world’s only primary consumer research and industry economic/operating studies. IHRSA is also one of the club industry’s major sources of education for club operators and owners.
Consumer EducationIn recent years IHRSA has expanded its leadership role in the fitness industry, by promoting increased consumer awareness of the benefits of exercise. IHRSA works with others to promote exercise adoption in countries around the world. IHRSA’s consumer web site, www.healthclubs.com, makes it easy for anyone to locate a quality IHRSA member health and fitness facility in more than 70 countries worldwide.
About IH
RSA
78 IHRSA EUROPEAN MARKET REPORT © 2007 International Health, Racquet & Sportsclub Association
Annual International Convention & Trade ShowIHRSA organizes and runs the industry’s largest and most successful US-based commercial fitness convention and trade show. Held every March, the event attracts over 10,000 attendees from 70 countries, featuring over 1,500 exhibit booths.
The educational component feature the highest quality speakers, including in recent years former US President Bill Clinton, Rudy Giuliani, Colin Powell, Arnold Schwarzenegger, Tom Peters, Ken Blanchard, Jim Collins, Faith Popcorn, and many others. The event also features over 75 seminars on every aspect of health club operations, workout classes, and social events.
IHRSA will be holding its 27th annual Convention & Trade Show 5-8 March 2008 in San Diego, CA (US).
Annual European Congress12-15 November 2007, the 7th IHRSA European Congress will be held in Paris, France. This event is the premier annual gathering of European industry leaders. For information, visit www.ihrsa.org/congress.
IHRSA UniversityIHRSA will hold the 3rd annual IHRSA University, a world-class leadership development programme, at the prestigious IESE Business School in Barcelona Spain, 2-6 June 2008. Only 40 candidates will be selected from all regions of the world to participate in this unique, industry-specific programme. Complemented by top executive speakers from within the industry, the course will be taught by the faculty of IESE, which is ranked by Business Week magazine as Number One in the world for custom education programmes. The course includes a leadership profile evaluation before participants come and an actionable Mission Critical Leadership plan 100 days after the weeklong programme. For more information, visit www.ihrsa.org/university.
News MagazinesIHRSA publishes Club Business International, the industry’s leading monthly periodical reporting on important global news and trends. In Europe, IHRSA publishes Club Business Europe bimonthly in print and digital formats. CBE is the only pan European magazine for the fitness industry. The digital edition may be viewed at www.ihrsaclubbusiness.com. In Latin America, IHRSA and Fitness Brasil jointly publish Fitness Business Latin America, a bimonthly Portuguese language magazine (with Spanish translation on IHRSA’s website) serving the entire region.
GovernanceIHRSA is governed by a Board of Directors, with global representation. The Board has designated Joe Moore as president and cheif executive officer.
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IHRSA263 Summer Street Boston, MA 02210 +1-617-951-0055 +1-617-951-0056 (FAX) http://www.ihrsa.org