Asia Pacific fitness club sector now worth $168 billion shows Deloitte report

25 July 2018 Consultancy.asia

The Asia Pacific fitness industry is now worth a record $16.8 billion according to a report from Deloitte, with the region’s still immature markets ripe for massive ongoing growth.

In a recent report from Deloitte on the Asia Pacific fitness market, conducted in collaboration with the International Health, Racquet and Sportsclub Association (IHRSA), the Big Four accounting and consulting firm has calculated revenues generated by 25,000 clubs across 14 regional markets to have reached a combined worth of $16.8 billion – the highest figure ever achieved.

And with Australia and New Zealand considered the only mature fitness club markets (the former estimated to be worth about A$2.5 billion), the authors of the report believe there’s still considerable room for further regional growth. Alan MacCharles, partner at Deloitte China, brackets the market development into three tiers; the first including the aforementioned Australasian states; tier two consisting of Hong Kong, Singapore, Japan and Taiwan, and; the final tier, encompassing the remaining Asian Pacific countries of the report.

Hong Kong and Singapore for example, as city-states with large expat and high income populations, have increased their market penetration rates to 5.9 and 5.8 respectively, from an average rate of 3.8 since 2015 – with the rapidly maturing market offering some room for growth as compared to say Australia, which with a penetration rate of over 15% and rising labour and real estate costs is bordering on saturation with little scope for growth.Asia Pacific fitness club sector now worth $168 billion shows Deloitte reportThe third tier, however – including Malaysia, China, the Philippines, Thailand, Vietnam and Indonesia, with penetration rates ranging from 1.04 percent down to as little 0.18 – represents a significant growth opportunity. With the Asian population (inc. India) pushing beyond 4.5 billion residents, and a swelling middle class in emerging locals economies increasingly health conscious, the just 22 million counted club members of the report could indeed be set to explode.

“Driven by the momentum of economic prosperity, the fitness market in the Asia Pacific region has shown steady growth, with a positive outlook going forward,” said MacCharles of Deloitte. “Overall market penetration is on an upward trajectory, reflecting an increasing awareness of the importance of good health and the role a club membership can play in this.”

Yet, as Kristen Walsh of the IHRSA notes in an article with Health Club Management magazine, the opportunities come with challenges; “Real estate costs, limited rental availability, infrastructure underdevelopment, lack of professionalised services and increasing competition are just some of the realities that club operators face when working in the Asia Pacific market.”

As a breakdown, the report data shows that China, Japan and South Korea lead the region with the overall number of fitness club members, with the three nations accounting together for more than half of the 22 million members across the countries of the study, while South Korea and Japan also have the highest number of clubs; including nearly 7,000 in South Korea, compared to the just 370 clubs in Indonesia serving the world’s fourth largest population.

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EY named official services supplier to the 2019 Rugby World Cup in Japan

04 December 2018 Consultancy.asia

The Japanese arm of EY has been announced as the official professional services supplier for the 2019 Rugby World Cup to be held in Japan next year.

With the one-year countdown already underway until the 2019 Japan Rugby World Cup kicks off in September next year, the local branch of global Big Four firm Ernst & Young has been named as the event’s official professional services provider. Appointed by the sport’s governing body World Rugby, EY retains its role from the 2015 Rugby World Cup in England and the Women’s Rugby World Cup held in Ireland last year.

“EY is a global leader in the accountancy, tax and business advisory sectors, and their services will be critical to an event,” World Rugby Chairman Bill Beaumont said in expressing his delight in the continuing relationship. “We look forward to strengthening our collaboration in the spirit of unity, innovation and teamwork as we prepare to deliver what will be a very special, successful and ground-breaking Rugby World Cup.”EY selected as professional services provider for 2019 Japan Rugby World CupAccording to an economic impact study conducted by EY earlier this year, the 2019 Rugby World Cup (RWC) is predicted to provide a £1.5 billion added value boon to the local GDP across the six weeks of its twelve-city schedule, with 400,000 visitors expected to contribute over £700 million in direct expenditure. The projections follow the £1 billion boost to the UK economy forecast by the firm prior to the event in 2015.

Under the agreement, the Japanese arm of EY, which will be integrated with the firm’s Asia Pacific operations by the time of the first whistle, will provide a full range of professional services for the tournament including in the areas of tax advisory and accounting, with the firm stating that it aims to contribute to the success of the tournament by working together with players and event organisers as well as rugby fans.

“It is a great honour for EY Japan to be able to participate in RWC 2019 as an official professional services supplier,” said Country Managing Partner Koichi Tsuji. “For a tournament where the teams compete with a national pride, we are looking forward to supplying our expertise as professional business advisors… As a supporter, we will do our best to ensure that RWC 2019 is remembered as the most exciting and successful to date.”

According to reports, more than 4.5 million ticket applications have been made for the 48-match 2019 event since ballots opened at the beginning of this year, with 40 percent of the bids originating from outside of Japan. On the field, Australia will be seeking to avenge its loss to New Zealand in the final of the 2015 tournament and reaffirm its status as the most successful Rugby World Cup team over the past 30 years.