From 50 Million to 100 Million

Although the IHRSA/SGMA partnership began with an exclusive focus on growing the U.S. health club market, it became apparent that in some ways this focus overlooked the global- ization of the industry. Indeed, many leading American fitness equipment companies were already getting 20% to 35% of their equipment sales from fitness facilities abroad. In addi- tion, this percentage is projected to increase in the decade ahead. Thus, these equipment companies were already committed to growing worldwide health club membership and not just club membership in the U.S.A.

In addition, more than one-third of IHRSA's total membership was already composed of facilities out- side the U.S. Clearly, the plan needed to address their growth issues as well as those of clubs within the U.S. And, finally, a growing number of leading American club management companies, including TSI, TCA and 24 Hour Fitness, were already beginning to operate across international boundaries. The industry was beginning to 'go global,' a trend that is also projected to accelerate in the decade ahead. As a result, IHRSA and SGMA made the decision to retain a sharp focus on reaching 50 million U.S. health club members by the year 2010, but to position the initiative in the larger context of global industry growth.

By happenstance, approximately half of worldwide health club membership today lies within the U.S. As of early 1999, there were approximately 25 million health club members within the U.S., and another 25 million outside. While the primary research on which this report was based was conducted entirely in the U.S., and while the U.S. objective for this initiative remains focused on the 50 million member mark, the larger context for this objective is global. Correspondingly, the larger goal for the year 2010 is to reach 100 million worldwide health club members: 50 million in the U.S., and another 50 million outside the U.S. In this new global context, the U.S focus of this report serves two purposes. First, it aims to spearhead initiatives that will grow membership within the U.S. health club market.

Second, it intends to position the growth of U.S. health club membership as a prototype and model for the growth of health club membership worldwide.