GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window
JP Lennard
JP Lennard
JP Lennard
Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

features

Research: Deep impact

New Deloitte report finds the health and fitness sector contributes up to US$91.22bn* a year to global GDP, as Frances Marcellin reports

Published in Health Club Management 2022 issue 6
In 2021, the UK health and fitness industry had a direct ‘value add’ of US$3bn, the report found / Photo: Shutterstock/ORION PRODUCTION
In 2021, the UK health and fitness industry had a direct ‘value add’ of US$3bn, the report found / Photo: Shutterstock/ORION PRODUCTION
Not only does the industry employ millions of people and generate billions in value- added to GDP, it also has an incredibly positive influence on health outcomes

A new report by Deloitte, outlining the social and economic value of the global health and fitness industry, has been released by The Global Health & Fitness Alliance (GHFA), in collaboration with IHRSA.

The 418-page document – Economic Health and Societal Wellbeing: Quantifying the Impact of the Global Health and Fitness Sector – outlines the impact of the health and fitness industry on GDP and healthcare systems worldwide, as well as specific activity in 46 different countries and territories. It has identified a total impact of up to US$91.22bn per annum*

The premise of the report is that the industry is a major contributor to GDP and employment globally and that its presence – through gyms, health clubs and physical facilities – raises activity levels in the local community, which increases GDP and reduces healthcare costs.

Establishing impact
By reviewing existing data, academic studies and industry reports, the authors have devised a way to indicate the impact of the industry, firstly by explaining the economic impact of absenteeism and presenteeism and secondly by citing how much an inactive worker in each country or territory costs the economy.

This figure is key, because the report makes tangible recommendations, suggesting that investing a similar amount in helping inactive individuals adhere to exercise habits would generate benefits to GDP and the healthcare system, resulting in a payback to the economy after only one year.

By evaluating data and economic studies, the report shows how active citizens create value-added GDP, which cuts healthcare costs and absenteeism and presenteeism.

Reviewed studies come from organisations such as the World Bank, the OECD and the World Health Organization (WHO), while researchers also studied academic papers – such as RAND (2019), which found inactive individuals lose 2.6 – 3.71 days’ working time due to presenteeism, and a Lancet-published report that found inactivity cost healthcare systems US$53.8bn worldwide, as far back as 2013.

Positive outcomes
“This report begins to paint a picture of the industry’s impact on population health and the economic impact of the industry,” reads the foreword from the GHFA and IHRSA.
“Not only does the industry employ millions of people around the world and generate billions in value-added to GDP, but it also has an incredibly positive influence on health outcomes. In doing so, the industry collectively saves billions in healthcare costs, as well as giving productivity benefits.”

The report’s layout for each country or territory starts with its status in figures relating to GDP per capita, healthcare spending as percentage of GDP, disposable income per capita, ageing trends, percentage of insufficient activity and obesity level. Health trends and government initiatives follow, then economic impact.

For the UK, for example, the health and fitness industry in 2021 had a direct value-add of US$3bn and supported an additional US$1.5bn in value-added in its supply chain as well as 50,100 jobs.

Deloitte then reveals the economic benefit for each inactive worker who becomes active. With exercise comes improved health benefits, such as a reduced risk of heart disease, stroke, hypertension, Type 2 diabetes, dementia, depression, anxiety and a range of cancers, including breast, colon, bladder, kidney, lung and stomach. By linking the impact of activity to GDP and healthcare costs, Deloitte shows how exercise adoption can remove a burden from the healthcare system, as well as increasing GDP.

Country analysis sample
• Inactivity costs the UK healthcare system US$4.3bn a year according to the report, of which US$3.6bn is covered by the public health system. Each year the UK loses 43.8 million working days in absenteeism and presenteeism, costing the UK economy US$16.5bn annually.

It concludes that every inactive worker costs the economy US$1,713 per year and investing US$1,700 in helping an inactive person to become active, results in payback in less than a year.

• In the US, inactivity costs the healthcare system US$84.7bn, every inactive worker costs the economy US$3,447 per year, and a US$3,000 investment is suggested to transform inactive people into regular exercisers.

• In Spain inactivity costs the healthcare system US$7.2bn, it loses 19.8 million working days in absenteeism and presenteeism and every inactive worker cost the economy US$1,978 (US$2,000 investment per inactive person recommended).

• In China, inactivity costs the healthcare system US$15.3bn, while the nation loses 381.5 million working days in absenteeism and presenteeism, and every inactive worker costs the economy US$466 (with a US$400 investment per person recommended).

Value of investment
“The good news is that if implemented correctly, programmes to increase exercise can be habit-forming (Kaushal & Rhodes, 2015),” reads the report. “An initial investment in one year can have a pay-off that lasts for years if a habit is built.”

Report authors, Alan McCharles, partner at Deloitte China, Adrian Xu, director at Deloitte China and Nicholas Young, senior associate at Deloitte China, also conducted interviews with industry stakeholders to shed light on some of the problems with current government and industry perceptions, collaboration and integration. It also highlighted how they are working together in China, USA and Japan.

One of the issues raised is governments viewing health club membership as a recreational activity rather than a health investment. In the UK, gym membership carries 20 per cent VAT, while in Belgium use of sports facilities has a rate of only six per cent. Stakeholders suggested that purchases such as this should carry a more favourable tax rate.

Personal training programmes, physical activity policies and exercise as preventative care are seen as ways governments could work with the fitness industry to drive the transformation of inactive people.

Overview of market penetration
The most established fitness markets when evaluated by penetration rates among adults are Sweden (34%), the USA (30%), the UK (23%), Australia (23%) and Germany (22%).

Fast-growing markets include Hong Kong (8%), Singapore (7%), Japan (6%) and China (6%).Underdeveloped markets are Malaysia (1.5%), Thailand (0.7%), Vietnam (0.7%) and India (0.2%).

• The 46 countries and territories chosen for inclusion in the study account for around 90 per cent of global GDP. They are Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, Canada, Chile, China (PRC), Chinese Taipei, Colombia, Costa Rica, Cyprus, Czech, Denmark, Finland, France, Germany, Greece, Hong Kong SAR – China, Hungary, India, Indonesia, Ireland, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, the UK, US and Vietnam.

To access the report, go to www.ihrsa.org

The report identifies the economic impact of absenteeism, as well as the cost of inactivity

Taxes on physical activity vary widely by nation depending on government priorities / Photo: Shutterstock/Goodluz
Taxes on physical activity vary widely by nation depending on government priorities / Photo: Shutterstock/Goodluz
https://www.leisureopportunities.co.uk/images/2022/839038_471881.jpg
A new report by Deloitte highlights the far-reaching impact of the fitness industry on the global economy and GDP and on people’s health outcomes
HCM magazine
Do people get fitter working out in the gym or at home? Researcher Bryce Hastings explains the evidence when it comes to how they measure up
HCM magazine
The urgent need to represent the industry to governments globally has led to the commissioning of a new report into its impact on GDP by the Global Health and Fitness Alliance
HCM magazine
New Deloitte report finds the health and fitness sector contributes up to US$91.22bn* a year to global GDP, as Frances Marcellin reports
HCM Magazine
HCM People
It became clear there was an opportunity to extend our collaboration beyond a single VR project – going beyond the physical and into the metaverse
HCM Magazine
Sponsored
Technogym’s latest connected equipment offers members personalised cardio training experiences with fresh content provided by expert instructors
HCM Magazine
Sponsored
Ben Hackney-Williams, head of content at Myzone, shares tools to drive positive change in 2022
HCM Magazine
HCM People
We want to be the global market leader in micro-studios
HCM Magazine
Policy
UK Active’s Alex Lucas explains the findings of a new report which shows how the fitness and leisure sector can help transform workforce activity levels in the new hybrid workplace
HCM Magazine
Everyone's talking about
Energy is top of the agenda for two major reasons – cost and decarbonisation. With these two on a collision course, our experts share their views
HCM Magazine
Indoor cycling
From colour zones to personalised resistance, indoor bikes now offer smarter, more advanced features than ever before. Suppliers tell us how their models can revolutionise your indoor cycling programme
HCM Magazine
Latest News
Mark Sesnan, CEO of GLL, has pushed back on Tower Hamlet Council’s decision to take ...
Latest News
Ohm Fitness, a new franchised studio concept, has opened its first location in Scottsdale, Arizona. ...
Latest News
Easton Leisure Centre in the UK has announced a 100 per cent reduction in heating ...
Latest News
The Gym Group saw its membership grow by 10 per cent during the first six ...
Latest News
Mindbody has announced that Fritz Lanman will become the company’s new CEO from 3 September ...
Latest News
Parkour Generations has joined forces with Gymbox to bring parkour into the UK’s mainstream fitness ...
Latest News
Amazon has acquired primary healthcare organisation One Medical in a US$3.9bn deal that will see ...
Latest News
Nearly half (47 per cent) of men employed by fitness companies work in leadership roles ...
Featured supplier news
Featured supplier news: Dr Paul Bedford and Andreas Paulsen to speak at Sibec Europe-UK
Questex’s Sibec Europe-UK, Europe’s leading hosted buyer event for the fitness industry, will take place on 27-30 September 2022 at the Anantara Vilamoura Algarve Resort, in Portugal.
Featured supplier news
Featured supplier news: EGYM announces integration with software provider Fisikal
EGYM has announced an integration with a leading UK-based software company Fisikal to enhance its capabilities to serve the needs of enterprise customers running multi-site operations.
Featured operator news
Featured operator news: New £42m Moorways Sports Village to open on 21 May
Everyone Active will open Moorways Sports Village to the public on Saturday 21 May with a grand opening weekend – in time for the half term holidays.
Featured operator news
Featured operator news: Parkwood Leisure celebrates four award wins and named Outstanding Organisation of the Year at the 2022 ukactive Awards
It was a night to remember at the 2022 ukactive Awards for Parkwood Leisure, as the leisure facilities operator picked up four awards.
Video Gallery
Mindbody, Inc
Total Vibration Solutions / Floors 4 Gyms / TVS Sports Surfaces
Mindbody, Inc
Company profiles
Company profile: InBody UK
InBody provides products that are accurate, medically rated holding a CE mark and certified to ...
Company profiles
Company profile: EMD UK
EMD UK is the national governing body for group exercise. Funded by Sport England, EMD ...
Supplier Showcases
Supplier showcase - Pulse Fitness: trusted partner
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Featured press releases: 90 per cent of employers admit workplace wellbeing can and should be improved
New research by Gympass in collaboration with People Management Insights indicates that employers are trapped in a ‘workplace first’ mentality.
Featured press releases
Featured press releases: Serco Leisure wins 10-year Mansfield contract
Following a competitive tendering process, Serco Leisure and its partner More Leisure Community Trust Limited (MLCT) have been awarded a 10-year contract by Mansfield District Council to operate three centres in the town, starting 1 May 2022.
Directory
Skincare
Sothys: Skincare
Spa software
SpaBooker: Spa software
Management software
Premier Software Solutions: Management software
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Architects/designers
Zynk Design Consultants: Architects/designers
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Salt therapy products
Himalayan Source: Salt therapy products
On demand
Fitness On Demand: On demand
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
21-21 Sep 2022
Various, London, United Kingdom
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates

features

Research: Deep impact

New Deloitte report finds the health and fitness sector contributes up to US$91.22bn* a year to global GDP, as Frances Marcellin reports

Published in Health Club Management 2022 issue 6
In 2021, the UK health and fitness industry had a direct ‘value add’ of US$3bn, the report found / Photo: Shutterstock/ORION PRODUCTION
In 2021, the UK health and fitness industry had a direct ‘value add’ of US$3bn, the report found / Photo: Shutterstock/ORION PRODUCTION
Not only does the industry employ millions of people and generate billions in value- added to GDP, it also has an incredibly positive influence on health outcomes

A new report by Deloitte, outlining the social and economic value of the global health and fitness industry, has been released by The Global Health & Fitness Alliance (GHFA), in collaboration with IHRSA.

The 418-page document – Economic Health and Societal Wellbeing: Quantifying the Impact of the Global Health and Fitness Sector – outlines the impact of the health and fitness industry on GDP and healthcare systems worldwide, as well as specific activity in 46 different countries and territories. It has identified a total impact of up to US$91.22bn per annum*

The premise of the report is that the industry is a major contributor to GDP and employment globally and that its presence – through gyms, health clubs and physical facilities – raises activity levels in the local community, which increases GDP and reduces healthcare costs.

Establishing impact
By reviewing existing data, academic studies and industry reports, the authors have devised a way to indicate the impact of the industry, firstly by explaining the economic impact of absenteeism and presenteeism and secondly by citing how much an inactive worker in each country or territory costs the economy.

This figure is key, because the report makes tangible recommendations, suggesting that investing a similar amount in helping inactive individuals adhere to exercise habits would generate benefits to GDP and the healthcare system, resulting in a payback to the economy after only one year.

By evaluating data and economic studies, the report shows how active citizens create value-added GDP, which cuts healthcare costs and absenteeism and presenteeism.

Reviewed studies come from organisations such as the World Bank, the OECD and the World Health Organization (WHO), while researchers also studied academic papers – such as RAND (2019), which found inactive individuals lose 2.6 – 3.71 days’ working time due to presenteeism, and a Lancet-published report that found inactivity cost healthcare systems US$53.8bn worldwide, as far back as 2013.

Positive outcomes
“This report begins to paint a picture of the industry’s impact on population health and the economic impact of the industry,” reads the foreword from the GHFA and IHRSA.
“Not only does the industry employ millions of people around the world and generate billions in value-added to GDP, but it also has an incredibly positive influence on health outcomes. In doing so, the industry collectively saves billions in healthcare costs, as well as giving productivity benefits.”

The report’s layout for each country or territory starts with its status in figures relating to GDP per capita, healthcare spending as percentage of GDP, disposable income per capita, ageing trends, percentage of insufficient activity and obesity level. Health trends and government initiatives follow, then economic impact.

For the UK, for example, the health and fitness industry in 2021 had a direct value-add of US$3bn and supported an additional US$1.5bn in value-added in its supply chain as well as 50,100 jobs.

Deloitte then reveals the economic benefit for each inactive worker who becomes active. With exercise comes improved health benefits, such as a reduced risk of heart disease, stroke, hypertension, Type 2 diabetes, dementia, depression, anxiety and a range of cancers, including breast, colon, bladder, kidney, lung and stomach. By linking the impact of activity to GDP and healthcare costs, Deloitte shows how exercise adoption can remove a burden from the healthcare system, as well as increasing GDP.

Country analysis sample
• Inactivity costs the UK healthcare system US$4.3bn a year according to the report, of which US$3.6bn is covered by the public health system. Each year the UK loses 43.8 million working days in absenteeism and presenteeism, costing the UK economy US$16.5bn annually.

It concludes that every inactive worker costs the economy US$1,713 per year and investing US$1,700 in helping an inactive person to become active, results in payback in less than a year.

• In the US, inactivity costs the healthcare system US$84.7bn, every inactive worker costs the economy US$3,447 per year, and a US$3,000 investment is suggested to transform inactive people into regular exercisers.

• In Spain inactivity costs the healthcare system US$7.2bn, it loses 19.8 million working days in absenteeism and presenteeism and every inactive worker cost the economy US$1,978 (US$2,000 investment per inactive person recommended).

• In China, inactivity costs the healthcare system US$15.3bn, while the nation loses 381.5 million working days in absenteeism and presenteeism, and every inactive worker costs the economy US$466 (with a US$400 investment per person recommended).

Value of investment
“The good news is that if implemented correctly, programmes to increase exercise can be habit-forming (Kaushal & Rhodes, 2015),” reads the report. “An initial investment in one year can have a pay-off that lasts for years if a habit is built.”

Report authors, Alan McCharles, partner at Deloitte China, Adrian Xu, director at Deloitte China and Nicholas Young, senior associate at Deloitte China, also conducted interviews with industry stakeholders to shed light on some of the problems with current government and industry perceptions, collaboration and integration. It also highlighted how they are working together in China, USA and Japan.

One of the issues raised is governments viewing health club membership as a recreational activity rather than a health investment. In the UK, gym membership carries 20 per cent VAT, while in Belgium use of sports facilities has a rate of only six per cent. Stakeholders suggested that purchases such as this should carry a more favourable tax rate.

Personal training programmes, physical activity policies and exercise as preventative care are seen as ways governments could work with the fitness industry to drive the transformation of inactive people.

Overview of market penetration
The most established fitness markets when evaluated by penetration rates among adults are Sweden (34%), the USA (30%), the UK (23%), Australia (23%) and Germany (22%).

Fast-growing markets include Hong Kong (8%), Singapore (7%), Japan (6%) and China (6%).Underdeveloped markets are Malaysia (1.5%), Thailand (0.7%), Vietnam (0.7%) and India (0.2%).

• The 46 countries and territories chosen for inclusion in the study account for around 90 per cent of global GDP. They are Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, Canada, Chile, China (PRC), Chinese Taipei, Colombia, Costa Rica, Cyprus, Czech, Denmark, Finland, France, Germany, Greece, Hong Kong SAR – China, Hungary, India, Indonesia, Ireland, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Russia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, the UK, US and Vietnam.

To access the report, go to www.ihrsa.org

The report identifies the economic impact of absenteeism, as well as the cost of inactivity

Taxes on physical activity vary widely by nation depending on government priorities / Photo: Shutterstock/Goodluz
Taxes on physical activity vary widely by nation depending on government priorities / Photo: Shutterstock/Goodluz
https://www.leisureopportunities.co.uk/images/2022/839038_471881.jpg
A new report by Deloitte highlights the far-reaching impact of the fitness industry on the global economy and GDP and on people’s health outcomes
Latest News
Mark Sesnan, CEO of GLL, has pushed back on Tower Hamlet Council’s decision to take ...
Latest News
Ohm Fitness, a new franchised studio concept, has opened its first location in Scottsdale, Arizona. ...
Latest News
Easton Leisure Centre in the UK has announced a 100 per cent reduction in heating ...
Latest News
The Gym Group saw its membership grow by 10 per cent during the first six ...
Latest News
Mindbody has announced that Fritz Lanman will become the company’s new CEO from 3 September ...
Latest News
Parkour Generations has joined forces with Gymbox to bring parkour into the UK’s mainstream fitness ...
Latest News
Amazon has acquired primary healthcare organisation One Medical in a US$3.9bn deal that will see ...
Latest News
Nearly half (47 per cent) of men employed by fitness companies work in leadership roles ...
Latest News
Scandinavian fitness chain SATS has reported Q2 results showing a 53 per cent increase in ...
Latest News
The World Active Forum (WAF) – a new network of national fitness associations and organisations ...
Latest News
Mark Wahlberg- and David Beckham-backed F45 Training has announced a reduction in its core workforce ...
Featured supplier news
Featured supplier news: Dr Paul Bedford and Andreas Paulsen to speak at Sibec Europe-UK
Questex’s Sibec Europe-UK, Europe’s leading hosted buyer event for the fitness industry, will take place on 27-30 September 2022 at the Anantara Vilamoura Algarve Resort, in Portugal.
Featured supplier news
Featured supplier news: EGYM announces integration with software provider Fisikal
EGYM has announced an integration with a leading UK-based software company Fisikal to enhance its capabilities to serve the needs of enterprise customers running multi-site operations.
Featured operator news
Featured operator news: New £42m Moorways Sports Village to open on 21 May
Everyone Active will open Moorways Sports Village to the public on Saturday 21 May with a grand opening weekend – in time for the half term holidays.
Featured operator news
Featured operator news: Parkwood Leisure celebrates four award wins and named Outstanding Organisation of the Year at the 2022 ukactive Awards
It was a night to remember at the 2022 ukactive Awards for Parkwood Leisure, as the leisure facilities operator picked up four awards.
Video Gallery
Mindbody, Inc
Total Vibration Solutions / Floors 4 Gyms / TVS Sports Surfaces
Mindbody, Inc
Company profiles
Company profile: InBody UK
InBody provides products that are accurate, medically rated holding a CE mark and certified to ...
Company profiles
Company profile: EMD UK
EMD UK is the national governing body for group exercise. Funded by Sport England, EMD ...
Supplier Showcases
Supplier showcase - Pulse Fitness: trusted partner
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Featured press releases: 90 per cent of employers admit workplace wellbeing can and should be improved
New research by Gympass in collaboration with People Management Insights indicates that employers are trapped in a ‘workplace first’ mentality.
Featured press releases
Featured press releases: Serco Leisure wins 10-year Mansfield contract
Following a competitive tendering process, Serco Leisure and its partner More Leisure Community Trust Limited (MLCT) have been awarded a 10-year contract by Mansfield District Council to operate three centres in the town, starting 1 May 2022.
Directory
Skincare
Sothys: Skincare
Spa software
SpaBooker: Spa software
Management software
Premier Software Solutions: Management software
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Architects/designers
Zynk Design Consultants: Architects/designers
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Salt therapy products
Himalayan Source: Salt therapy products
On demand
Fitness On Demand: On demand
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
21-21 Sep 2022
Various, London, United Kingdom
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates
Search news, features & products:
Find a supplier:
JP Lennard
JP Lennard
Partner sites