GET SPA BUSINESS
magazine
Yes! Send me the FREE digital editions of Spa Business and Spa Business insider magazines and the FREE weekly Spa Business and Spa Business insider ezines and breaking news alerts!
Not right now, thanksclose this window
NEWS
New Deloitte report finds the health and fitness sector contributes up to US$91.22bn a year to global GDP
POSTED 23 Jun 2022 . BY Frances Marcellin
A new report from GHFA, IHRSA and Deloitte China has revealed the industry's contribution to GDP Credit: ORION PRODUCTION/shutterstock
GHFA, IHRSA and Deloitte have released the report 'Economic health and societal wellbeing: quantifying the impact of the global health and fitness sector'
Authors calculate the monetary value of the health and fitness industry to GDP and healthcare
Shows how transforming inactive individuals to active is key to cutting healthcare costs and raising GDP
It was made public at IHRSA’s 2022 event and analyses industry impact on 46 countries and territories, finding a total impact of US$91.22bn
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, clubs and physical facilities – raises activity levels in the local community, which increases GDP and reduces healthcare costs.

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.

“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 and 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 demonstrates how exercise adoption can remove a burden from the healthcare system, as well as increasing GDP.

Inactivity cost 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 43.8m working days in absenteeism and presenteeism, which costs 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 19.8m 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 381.5m working days in absenteeism and presenteeism and every inactive worker costs the economy US$466 (with a US$400 investment per person recommended).

“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.”

The authors of the report, 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 gym 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 6 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 suggested as ways governments could work with the health and fitness industry to drive the transformation of inactive people.

The most established fitness markets – 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%).

According to GHFA and IHRSA, 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, United Kingdom, United States and Vietnam.

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

*Some double counting has been identified in this number.
RELATED STORIES
  FEATURE: Write to reply: Supporting mental health


Our industry has a crucial role to play in supporting those with mental health issues and challenges, writes IHRSA president and CEO Liz Clark
  FEATURE: Annual report: Deloitte European Report


Karsten Hollasch reports on the ninth European Health and Fitness Market Report from Deloitte and Europe Active
  Deloitte says European fitness sector is recovering: memberships and number of clubs up in 2021


The number of people with a gym membership in Europe increased by 1 million (or 2 per cent) during 2021 – from 55.2 million in 2020 to 56.3 million by year-end 2021.
  Andrea Bell is the new chair of the Global Health & Fitness Alliance


The Global Health & Fitness Alliance (GHFA) has announced Andrea Bell, director and chief people officer of Inspire Brands Asia, is to serve as the new chair of its advisory council.
MORE NEWS
Susie Ellis, Belgin Aksoy and Michael Roizen head up GWS' all-new podcast season
The Global Wellness Summit (GWS) has kicked off the sixth season of its wellness podcast which has recently been renamed Global Wellness Conversations (GWC).
Jacqueline Berry steps up to group director of spa and wellbeing at Miraval
Industry veteran Jacqueline Berry has been appointed group director of spa and wellbeing at Miraval. She will oversee the company's Life in Balance spas at Miraval Arizona, Miraval Austin and Miraval Berkshires.
Rosewood set to make Venetian debut following restoration of Hotel Bauer
Rosewood Hotels & Resorts is continuing its strategic global growth plan and will open its first property in Venice, Italy, in 2025.
Tuscan wine country inspires Hotel Le Fontanelle’s new nature-centric wellness sanctuary
A new spa and wellness retreat has launched at The Fontanelle Estate in Tuscany, a countryside property nestled among the rolling hills and vineyards of Italy’s Chianti wine region.
+ More news   
LATEST JOBS
+ More jobs  

FEATURED SUPPLIERS

Comfort Zone’s new Sun soul, safe for the skin and the ocean
The new Comfort Zone Sun Soul range has been completely reformulated to be at the forefront of anti-ageing, sustainable sun care. [more...]

Living Earth Crafts® - the first choice for world-class spas
Living Earth Crafts (LEC) is the world’s most recognised manufacturer of premium spa and wellness equipment. [more...]
+ More featured suppliers  
COMPANY PROFILES
Barr + Wray Ltd

Being able to create award-winning spas, offering a full interior design package and a technical a [more...]
THALION Laboratories

Thalion offers face, body, men and thalasso products and protocols, together with a full range of sp [more...]
+ More profiles  
CATALOGUE GALLERY
 

+ More catalogues  

VIDEO GALLERY

Art of Cryo cryo chamber manufacturer | test and research center in Cologne
Here you see a tour of the Art of Cryo test and research center in Cologne. Find out more...
+ More videos  

DIRECTORY
+ More directory  
DIARY

 

25-27 Jun 2022

IECSC Las Vegas

Las Vegas Convention Center, Las Vegas, United States
27-28 Jun 2022

Medical Wellness Congress

St. Martins Spa & Lodge, Frauenkirchen, Austria
+ More diary  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
SPA BUSINESS
SPA OPPORTUNITIES
SPA BUSINESS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2022
News   Products   Magazine
NEWS
New Deloitte report finds the health and fitness sector contributes up to US$91.22bn a year to global GDP
POSTED 23 Jun 2022 . BY Frances Marcellin
A new report from GHFA, IHRSA and Deloitte China has revealed the industry's contribution to GDP Credit: ORION PRODUCTION/shutterstock
GHFA, IHRSA and Deloitte have released the report 'Economic health and societal wellbeing: quantifying the impact of the global health and fitness sector'
Authors calculate the monetary value of the health and fitness industry to GDP and healthcare
Shows how transforming inactive individuals to active is key to cutting healthcare costs and raising GDP
It was made public at IHRSA’s 2022 event and analyses industry impact on 46 countries and territories, finding a total impact of US$91.22bn
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, clubs and physical facilities – raises activity levels in the local community, which increases GDP and reduces healthcare costs.

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.

“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 and 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 demonstrates how exercise adoption can remove a burden from the healthcare system, as well as increasing GDP.

Inactivity cost 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 43.8m working days in absenteeism and presenteeism, which costs 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 19.8m 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 381.5m working days in absenteeism and presenteeism and every inactive worker costs the economy US$466 (with a US$400 investment per person recommended).

“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.”

The authors of the report, 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 gym 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 6 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 suggested as ways governments could work with the health and fitness industry to drive the transformation of inactive people.

The most established fitness markets – 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%).

According to GHFA and IHRSA, 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, United Kingdom, United States and Vietnam.

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

*Some double counting has been identified in this number.
RELATED STORIES
FEATURE: Write to reply: Supporting mental health


Our industry has a crucial role to play in supporting those with mental health issues and challenges, writes IHRSA president and CEO Liz Clark
FEATURE: Annual report: Deloitte European Report


Karsten Hollasch reports on the ninth European Health and Fitness Market Report from Deloitte and Europe Active
Deloitte says European fitness sector is recovering: memberships and number of clubs up in 2021


The number of people with a gym membership in Europe increased by 1 million (or 2 per cent) during 2021 – from 55.2 million in 2020 to 56.3 million by year-end 2021.
Andrea Bell is the new chair of the Global Health & Fitness Alliance


The Global Health & Fitness Alliance (GHFA) has announced Andrea Bell, director and chief people officer of Inspire Brands Asia, is to serve as the new chair of its advisory council.
MORE NEWS
Susie Ellis, Belgin Aksoy and Michael Roizen head up GWS' all-new podcast season
The Global Wellness Summit (GWS) has kicked off the sixth season of its wellness podcast which has recently been renamed Global Wellness Conversations (GWC).
Jacqueline Berry steps up to group director of spa and wellbeing at Miraval
Industry veteran Jacqueline Berry has been appointed group director of spa and wellbeing at Miraval. She will oversee the company's Life in Balance spas at Miraval Arizona, Miraval Austin and Miraval Berkshires.
Rosewood set to make Venetian debut following restoration of Hotel Bauer
Rosewood Hotels & Resorts is continuing its strategic global growth plan and will open its first property in Venice, Italy, in 2025.
Tuscan wine country inspires Hotel Le Fontanelle’s new nature-centric wellness sanctuary
A new spa and wellness retreat has launched at The Fontanelle Estate in Tuscany, a countryside property nestled among the rolling hills and vineyards of Italy’s Chianti wine region.
Good Spa Guide Awards name top UK spas following record-breaking voter turnout
The winners of the 13th annual Good Spa Guide Awards were announced last night (20 June) at industry conference Spa Life UK taking place this year in the Cotswolds.
Mandarin Oriental launching first alpine resort in Cortina, Italy, in 2025
Mandarin Oriental Hotel Group (MOHG) has signed a long term management agreement with Attestor Limited to rebrand and manage Hotel Cristallo in Cortina d’Ampezzo, Italy.
+ More news   
 
FEATURED SUPPLIERS

Comfort Zone’s new Sun soul, safe for the skin and the ocean
The new Comfort Zone Sun Soul range has been completely reformulated to be at the forefront of anti-ageing, sustainable sun care. [more...]

Living Earth Crafts® - the first choice for world-class spas
Living Earth Crafts (LEC) is the world’s most recognised manufacturer of premium spa and wellness equipment. [more...]
+ More featured suppliers  
COMPANY PROFILES
Barr + Wray Ltd

Being able to create award-winning spas, offering a full interior design package and a technical a [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

VIDEO GALLERY

Art of Cryo cryo chamber manufacturer | test and research center in Cologne
Here you see a tour of the Art of Cryo test and research center in Cologne. Find out more...
+ More videos  

DIRECTORY
+ More directory  
DIARY

 

25-27 Jun 2022

IECSC Las Vegas

Las Vegas Convention Center, Las Vegas, United States
27-28 Jun 2022

Medical Wellness Congress

St. Martins Spa & Lodge, Frauenkirchen, Austria
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2022

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS