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Fitness industry bleeds money and jobs while government dithers

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Jordan Griffiths is the acting chief of staff in the mayor’s office in Tshwane; he writes in his personal capacity.

The fitness industry employs about 29,000 people at more than 1,100 gyms across South Africa and is facing tremendous strain. The industry has a combined value of R21.8-billion. Studies from Norway show that it is possible to safely reopen gyms, but there is no movement on the issue in South Africa.

On Wednesday 5 August 2020, members of the fitness industry and supporters held a nationwide protest on the continued closure of the industry. This comes as the government has failed to provide any indication as to when the industry can reopen.

Writing in Business Day, Manny Rivera, CEO of Planet Fitness, described how gyms were prepared to operate safely so that members can return. This required creating a safe environment that is in line with international best practice as prescribed by the World Health Organisation (WHO). 

Rivera described how the gyms will introduce temperature checks, continuous deep cleaning regimes, create space on the floor through removing equipment, and reduce the number of people in facilities – along with ensuring strict measures of social distancing. All these measures would ensure the safest possible environment.

On 22 July Sports Minister Nathi Mthethwa confirmed to the media that he had met the industry and received proposals on how it could operate safely in the face of the spread of Covid-19. However, it has been well over three weeks since the Department of Health and the Department of Sports were given the opportunity to review these proposals. 

To date, there has not been any feedback on when the sector can begin operating again. In the meantime, jobs are being lost as the industry is being forced to save costs in an effort to ensure operations can continue into the future.

The fitness industry employs about 29,000 people at more than 1,100 gyms across the country and it is facing tremendous strain. For instance, at the end of July, Virgin Active announced that it will be temporarily laying off more than 3,000 staff members and paying them 25% of their income to ensure they are not left with absolutely no money. Planet Fitness has managed to avoid job losses, but they have also had to introduce salary cuts.

The industry has a combined value of R21.8-billion and there were significant prospects for growth in the country. Planet Fitness planned to open 12 additional clubs over the next year, valued at between R500-million to R1-billion – plans that will likely need to be re-evaluated as the group weathers the effects of Covid-19 and the lockdown. There were also discussions on the possibility of the Virgin Active chain being sold this year.

What few understand is that the fitness industry has been one of the hardest hit when it comes to a loss of revenue. When South Africa initially went into lockdown at the end of March, the industry shut down completely. They also suspended the collection of debit orders for this period. It is now four months later and they have been unable to earn any income at all. While other sectors have been able to gradually open with restrictions in place, virtually no quarter has been given to the fitness industry.

The only other industry that has suffered equally is the tobacco industry, which has also not been allowed to operate. Even the sale of alcohol resumed for a limited period. It is a dark irony that the fitness industry, which promotes healthy living and physical wellness, has faced the same harsh restrictions as the tobacco industry which sells products that actively damage your health.

Major groups such as Planet Fitness and Virgin Active may have the cash reserves to sustain their businesses for some time, but they have still effectively lost a third of the income they would have earned for the year. 

What about the smaller operators like studios and private gyms? They simply do not have the funds to carry such a loss, and it’s likely that many of them will be forced to close down. There are estimates that 80% of the sector could end up closing permanently if they are not allowed to reopen soon.

There is also a real human impact that government does not seem to be aware of. Many of those who work in the fitness industry are not permanently employed, but are essentially contractors. Personal trainers and group instructors who teach fitness classes are not full-time employees and thus have limited options to fall back on. The Temporary Employee Relief Scheme has reportedly been extended till mid-August, but payouts have often been delayed or are difficult to access.

A Norwegian study on the reopening of gyms has indicated that people who go to gym were no more likely to get infected with Covid-19 than people who didn’t. This has led to Norway cautiously reopening the sector.  

There will always be risks in reopening the gyms and it will require careful management. However, the current rationale behind keeping gyms closed while other sectors in the country are operating is simply not defensible. South Africans are now able to gather in churches and go to restaurants. To assume that training in a heavily sanitised environment, where you will likely be at least two metres from the next person, is riskier than these other activities is irrational.

There are of course other costs that need to be considered in keeping the industry closed. Individuals who are fit and active are unlikely to add to the strain on the country’s health services. This is important particularly if a core goal in managing the spread of Covid-19 is preventing the health sector from being overwhelmed. Ensuring that we create a population of healthy people should be a priority of the government.

The fitness industry has come forward with proposals on how it can create a safe environment for South Africans to safely train during the pandemic. It is critical that the government engages with these ideas and allows the sector to reopen. DM

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