Read for Free: 2024 State of the UK Fitness Industry Report

INSIGHT & ANALYSIS

INSIGHT & ANALYSIS

So far, our sector has only really built better facilities for people who already use them. We either sort it out now or we might as well pack our bags.

A number of the London boroughs are doing it – Tower Hamlets, Southwark, Hounslow, Haringey – and I believe it’s to better integrate leisure into health, wellbeing and the strategic direction of the council. I think they’re beginning to move away from seeing leisure as a cost to instead see it as a value proposition, with community wellness facilities part of a much wider strategic objective. Certainly at Southwark, there’s now a health representative present at many discussions about programmes delivered in community facilities, which I see as hugely positive and reflective of the new public mindset: in recent ukactive research, 55 per cent of Brits said they now use gyms to manage or prevent a short- or long-term health condition. That’s a radical change from the aesthetic rationale of 10 years ago. Meanwhile, we’re seeing regions in the north of England where multiple councils are amalgamating and bringing services in-house, with a clear mission around improving the health and wellbeing of communities. So, the landscape really is changing in the public sector, with the health and wellness agenda one of the key drivers. Sustainability is the other, as leisure centres are massive users of energy. All councils have signed up to Climate Emergency and have pledged to be carbon neutral by 2030, but what that really means is still unclear. Does it mean in construction, in operation, in the whole lifecycle of the building including the end of its life? Do we also need to factor in people’s travel to the facility, meaning we must choose more expensive central locations? I don’t want to call carbon neutral a soundbite, but it is something people don’t really understand yet. Certainly we may all have to accept cooler swimming pools and gyms that aren’t as heavily air-conditioned in the future, and new builds will have to put carbon reduction at the heart of their design – heat pumps, solar power, wind farms, airtightness, elevation and orientation to make the most of the sun, and so on.

We need to align with wellness and health and ensure what we build is relevant to the wider population, says Watts

“Imagine the power of prehab programmes where we quantify the financial savings of reducing patients’ time in hospital”

SARAH WATTS

Our biggest opportunity is to properly position the sector, rebranding from fitness to embrace the health and wellness agenda, says the founder and CEO of Alliance Leisure

What are you seeing in the sector? From revenues to participation to renewals, we’re seeing pretty strong growth in the private sector at the moment, with the premium end of the market really flying. However, there’s a significant gap between the higher-end private operators and the lower-priced public offerings, and that gap is caused by the ongoing cost of living crisis. It’s impacting the pay-as-you-go model in particular. If you have limited disposable income, and especially later in the month, it can be hard to justify an £8 pay-as-you-go workout – a thought process most monthly subscribers won’t go through for each visit.

Meanwhile, we’re seeing more insourcing – that is, councils taking leisure back in-house. It’s a threat as well as an opportunity, as after all these years of outsourcing to leisure management contractors, councils need to upskill. However, I believe it shows the councils are serious about it. When you outsource a service, it becomes something that might or might not make a bit of money. When you run it yourself, it’s part of the fabric of what you want to provide as a council.

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STATE OF THE UK FITNESS INDUSTRY REPORT 2024

STATE OF THE UK FITNESS INDUSTRY REPORT 2024

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