Omicron spread the latest example of COVID-19’s negative impact on fitness clubs

The spread of the Omicron variant of the Coronavirus is the latest manifestation of the two-year impact of COVID-19 and gyms and fitness clubs Australia.

With January traditionally a booming period for the industry - when many people resolve to improve their physical and mental wellbeing - gyms across the country continue to operate with restrictions and reduced class sizes.

Industry and marketing research agency IBISWorld, projected in September that industry revenue would drop "significantly" over the next three years, including an estimated 16.2% decline this financial year.

Its Weighed Down report revealed gyms across the $2 billion industry found it difficult to recover between outbreaks, with social distancing limiting revenue and shrinking the customer base.

Similarly, AUSactive advised that findings among its 25,000 members across the industry revealed that 50% of its "industry operators reported a complete loss of income" during forced closures in 2020.

These included personal trainers, exercise professionals, yoga and Pilates teachers, martial arts instructors and administrators.

While many tried to adapt to virtual classes and equipment rentals, the report noted trainers found "limited success with these strategies, generating only about 10% of typical income through online coaching".

Released and first reported on in September, the Weighed Down report went on to reveal that half the industry's workers have quit over the course of the pandemic and that workers found the portrayal of facilities as "petri dishes" for the virus as being unfair.

Commenting on the findings and the Omicron outbreak, IBISWorld Senior Analyst, Arthur Kyriakopoulos “the Omicron variant is likely to have a substantial negative effect on the industry.”

Kyriakopoulos said the number of cases had "greatly reduced the demand to exercise in facilities" and had reignited anxieties of contracting the virus in enclosed spaces, adding “the timing of the variant has been quite unfortunate as it's the New Year period and a lot of people's resolutions is often to buy a gym membership.

"However, as we're currently not in a lockdown, demand for gyms still exists and people are still able to go. It's unlikely the impact from Omicron will as substantial as previous outbreaks."

In report on the ABC, AUSactive Chief Executive, Barrie Elvish noted the staffing crisis, stating “the research indicates that we have lost over half of the people that used to work industry.

"It's completely understandable. If you're constantly not being able to go work because your facilities are being closed or you can't go to a public park or run a boot camp because of restrictions … it's no wonder people have left for a more regular workplace."

Elvish attributed part of the industry decline to an "unfair and inaccurate" demonisation of health facilities, commenting "generally speaking, people who go to a gym are much more health conscious than those who go to a grog shop.

"And because we have experienced so much closure over the last two years, people are doing absolutely anything they can to keep open."

Elvish advised that AUSactive said it was reiterating to its members to enforce its COVID-safe policies.

Click here to view the IBISWorld report.