Gold Magazine March - April 2013, Issue 24 | Seite 40

OPINION

Turning To Fitness
Healthier people means healthier profits
for an industry that is steadily growing

W

e all know that exercise is
good for us but how many
of us do it regularly? Moreover, how many employers
recognize the economic
benefits of exercise? It is a fact that investment in
workforce wellness results in notable savings per year
through reduced absenteeism, improved productivity and morale, reduced costs and medical claims and
a return on the investment. By implementing wellness and exercise programmes, companies reap the
rewards that come from having healthier employees.
Forward-thinking organisations see this as an important contribution to the culture of their business and
they may offer in-house fitness facilities, subsidize
gym memberships or offer their employees educational courses on nutrition and smoking cessation.
When Motorola invested $6 million in its wellness
initiative programme, for every $1 invested, $3.93
was saved. In 1998, the ROI for all of Pfizer’s on-site
fitness centres was 4.29:1.
Despite the economic conditions of the last few
years, the worldwide fitness industry has been growing slowly but steadily and attracting greater public
interest thanks to increased media exposure. In the
US, Michele Obama launched the ‘Let’s Move’ initiative in 2010 to raise a healthier generation of kids
through exercise, while in the UK, Jamie Oliver’s
2011 ‘Food Revolution’ movement aimed not only
to bring healthier food to schools but also to educate
children about proper nutrition. Now, rapper 50
Cent is preparing a new book on fitness, airports are
becoming workout-friendly by installing easy-to-use
exercise equipment in waiting lounges, Madonna
is opening another ‘Hard Candy’ facility in Rome,
Nike is working on fitness video games, LesMills
New Zealand is entering the home fitness market
by partnering up with BeachBody USA, and well
known doctors are speaking in favour of exercise
either through talk shows and books (Dr Oz) or
online (Dr. Mercola). These successful individuals
and businesses know what gets their potential target
market excited and what it is looking for, and they
are heavily leveraging their offerings to the growing
demand for fitness and influencing public opinion.

By
implementing
wellness
and exercise
programmes,
companies reap
the rewards
that come from
having healthier
employees

By Kyriakos
Onisiforou

New online platforms now deliver fitness education to the end user in the convenience of the home,
fitness applications for smartphones are booming,
young and aspiring entrepreneurs are storming social
media networks and gaining over 8 million views for
three-minute fitness videos produced in their living
rooms.
And what of Cyprus? The wellness tourism
industry is cited as an emerging investment sector
by CIPA but the fitness industry – a basic pillar of
wellness – doesn’t get a lot of attention. However,
global trends indicate that companies (and whole
countries) of any size can benefit from a turn to
wellness, even in hard financial times. Cyprus is
no exception and during the island’s most difficult
financial period, it has the potential to act as an
emerging industry that can give the market a natural
‘feelgood’ medicine that doesn’t have to cost much
to the end user.
A fitness business startup in Cyprus, depending
on the targeted niche, can range from:
• Less than €1,000 initial investment by using an
Internet connection for an online fitness information provider
• €25-€50,000 to equip a small 150sq.m. room for
private or small group training /education sessions
• €500,000- €1 million to rent and equip a facility
or buy an existing business
• €3-5 million to acquire land and build a large
facility that provides a combination of wellnessrelated services
The market has taken a long time to get the
message but it seems that it has finally done so and
it now appears ready to buy into fitness like never
before. People have realized that the only way to get
results is by investing in time and in knowledge of
fitness and this will create many opportunities to
capitalize on growing demand in so many different
fitness service niches. It is now time to take a serious
look at the wellness industry and turn to fitness, not
just for our health’s sake but also, to quote from the
title of economist and social entrepreneur Paul Zane
Pilzer’s 2002 bestselling book, for the opportunity to
make a fortune in the next trillion dollar industry.

info: Kyriakos Onisiforou has a university degree in Physical Education and Sports Science. He has been involved in the fitness industry for the past 10 years, working as a
personal trainer, group fitness trainer, health club manager and fitness business consultant.
40 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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07/03/2013 11:54