Discuss about the Health And Economic Performance.
The development of fitness centers across the nation of Australia plays a key role in the development of economy. Positive impacts and economic benefit from this sector goes along way in the establishment of stronger workforce and income generation through employment exist such as improved living standards (Kain 2014). Today, the positive health effects of physical activity are uncontested, a s a vast body of empirical studies has provided evidence for the existence of its positive impact s o n weigh t problems and chronic disease s alike. Contemporary research further documents a positive relationship between regular exercise and people’s overall l well-being (Kocarev 2016). Moreover, physical inactivity is considered a s the fourth leading cause of death worldwide (Rutsohn & Kent 2017). I n the following chapter, the most prevalent health issue affected by physical activity are outline d including the allied costs for a country’ s health car e System. This is followed by studies estimating the concrete economic impact of physical activity from the Australian perspective perspectives.
The objectives of this project are;
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Project Scope Statement |
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PROJECT NAME |
IMPACT OF FITNESS IN AUSTRSLIAN ECONOMY |
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PROJECT SPONSOR |
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DATE OF PROJECT APPROVAL |
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SCOPEDESCRIPTION |
Determination of the role of fitness industry in economy Illustration of the transformation to the economy as a result of the fitness industry |
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ACCEPTANCE CRITERIA |
The project will be accepted when it is agreed by the team that it meats the specified needs of economic assessment in the fitness industry |
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ASSUMPTIONS |
All fitness companies have been registered and follow the requirements of the low |
The human body should be subjected to a number of active physical movement or exercise in order to be physically fit and be able to be productive in the society. According to Gallego (2017), Australia is ranked as the fifth in the world with a percentage of 21.3% of the population suffering from obesity. The fitness industry in the country plays a key part in the economy. The fitness industry has experienced a growth spurt in the recent years. This is due to the government efforts to encourage the Australians to adopt a healthy lifestyle resulting in greater demand for fitness product and services. The art of keeping Australians fit is a big business. This business has got both direct and indirect benefits to the economy which can be classified into two major groups.
The broader economic impacts of fitness companies primarily concern its role in improving the health and wellbeing of the community thus leading to a reduction in the healthcare cost and enhancing the potential of individual contribution to national income. On the other hand, direct economic impact concerns itself with economic measures for instance size of the industry and employment and addition of its value and contribution to national income (GDP).
It creates opportunities for jobs to different classes of people. Research shows that the health fitness centers generate to approximation of $ one billion per annum revenue to the economy of Australia (Cheung, Lee, & Oksa 2016, p. 90). The fitness industry has contributed greatly in creation of employment opportunities for Australian citizens, according to the research, Sweep (2009) there were around 18,869 people employed by the industry and this population as been increasing steady as the years go by. These employed individuals include both part-time and full-time workers in addition to casualties.
Through the employment of the fitness instructors and personal trainers, the country has been able to generate a gross domestic income of up to $ 374.2 million which was used in payment of wages and approximately $112.3 million being returned to capital owners (Wickramasinghe 2018). The main components of income generation being fee received from membership and casualties. According to the 2016financial years report, the employment rate of individuals in this sector has seen great progress in its transition.
The demand of goods and services created by the fitness centers in the commercial market that is dealing with supplies for instance when the centers undergo repair and maintenance, they cause other businesses in the market to earn income that by the end of the day will result to net income in the government’s revenue. In addition to this, Gallego (2017) denotes that the wages earned by employees and the input used to generate income for further supply. This leads to an indirect contribution to the economy through buying of fitness equipment from other companies. This is because according to the research done in 2009 there is an increased coverage of wages in the industries supplying fitness materials than the fitness industries themselves.
The fitness industry has grown by 4.9% between 2009 and 2014 despite the decline in 2009 when consumers sought more affordable health and fitness alternative because of bad economic climate. Gallego (2017) denotes that there has also been a growth spurt in the revenue from this industry to the economy of Australia due to popularity of weight loss reality television shows, efforts by the government to promote healthy living and weight loss that have also contributed to the increase in demand for fitness services and product. Being a home to many world class fitness chains such as Fernwood women health club, step in to life and fitness enhancement personal training; the fitness industry has become a dynamic and important part of the Australian economy (Sarri 2018). It has managed to expand significantly over decades with several fit ness centers securing market foothold across the market with around 1.73 million Australians using these centers.
Furthermore, the impact of the fitness industries goes beyond its direct economic contribution. It plays a key role in ensuring the improvement of the health and fitness of the Australians. This helps to deliver a longer term of social and economic benefits across the community.
When it comes to the broader economic impacts of fitness to the economy, research carried out by the access economics estimates that Australian’s fitness center can provide savings in direct health care costs of up to $ 108 million per Annam. More economic modeling also shows and reveal that about 3% increase in the fitness center utilization by the adult population has the potential to deliver additional health care savings. which lead to increase in extra full-time workforce in the nation. Katzmarzyk, Gledhill, and Shephard (2010) made an effort to estimate the economic burden of physical inactivity in Australia and also calculated the impact of a 10 % increase of physical activity on the national health care System. For this purpose, they obtained the relative risk (RRs) attributable to physical inactivity from different studies for stroke, hypertension, type 2 diabetes , and osteoporotic fractures. Then, similar to Simmons and Kutz (2018), Scarborough (2011) studied population-attributable fractions (PAFs) and estimated the proportion of chronic diseases and premature death if physical inactivity could be eliminated. The ultimate result showed that there are $2. 1billion costs related to physical inactivity which represent 2.5 % of the overall costs of the health care System in Australia. According to these numbers, a 10 % increase i n physical activity would equate saving s o f C$15 0 million each year.
Improvement of health of the community acts as the basic or primary channel in of the indirect or the broader effect of fitness industry in the nation. The presence of good health and environment results in to major economic benefits in any are of the nation. This can be summarized inform of freedom to lead a more active, healthy and productive life. Jimnez (2018) mentioned earlier that Australia is the fifth in rank with people suffering from obesity; fitness industry has greatly led to reduction of this percentage. The potentiality of preventing health related diseases with measures such as the provision of fitness centers has helped reduce directly the burden of avoiding illness in addition to lowering the health care cost, illness prevention and health promotion has considerable benefit to the workforce through enhancement of participation and productivity. The results of these fitness industries can also be in seen Australia such as the continuous improvement health leading to increased life expectancy. For instance, according to research done in 2006, life expectancy in Australia was at 81.4 years thus leading to increased manpower in productivity and resulting to economic growth.
A person’s health and state can affect their level of physical activity and his/her prospects of employment. This chapter takes on amore micro-economic perspective and factors in increase productivity of a Single employee through an improved overall health condition. In the past few years, worker health care costs have rapidly increase d (Freudenberg 2017, P. 1695). Most of the companies are aware of this development and have tried to implement certain intervention s t o promote improve d health of employees. The reduction of predominant or grater use of passive entertainment like cinema, television and computers in addition to lifestyle that courses health related problems diseases such as obesity and diabetes type 2has dropped drastically due to promotion of exercise and active lifestyles brought by fitness enterprises.
From the study by Begg (2017), physical inactivity was the fourth greatest risk factor accounting to 6.6 percent of the disease burden. The health benefits attributed to fitness centers the promotion of more active lifestyle. The exercises provided help prevent citizens especially by reducing incidences of chronic diseases thus resulting to healthy lifestyle and an increased productivity in the workforce of the Australian economy. The estimated benefits from reduced physical inactivity resulted in potential opportunity cost savings of AUD96 million to the health sector (0.19% of total annual health sector costs and 14% of attributable annual health sector costs to this risk factor), AUD12 million in workforce production (Romero and López 2016), AUD71 million in homebased production and AUD79 million in leisure-based production. This represents approximately 14% of the total production cost losses attributable to this risk factor (AUD1, 135 million). The largest component of these total potential opportunity cost savings would occur in household production and leisure, followed by the health sector and workforce. AUD in 2008 can be converted to US dollars, using the purchasing power parity of AUD1.48. This clearly indicates the indirect economic benefit and impact of fitness industry in the economy of Australia.
Ready (2015) states that fitness center membership may constitute a large part of the population who are sufficiently active to achieve optimal health, an aspect that motivates their performance and contribute to economic growth. Furthermore, Guile-corti and Donovan (2002) asserted the fact that membership in any form of sport and recreation club increased the likelihood of achieving the recommended level of activity by 2.5 times. This has helped avoid incurring extra healthcare cost at a larger percentage in caring for infections such as cardiovascular diseases and osteoarthritis.
The link between better health outcomes form improved disease prevention and workforce participation made through fitness centers/industries. Given the fact that more individuals have become active and physically fit, it has led to increased labor force participation an equivalence of 17% increase of full-time employees caused by the reduction of type 2 diabetes and cardiovascular diseases.
Kocarev (2014) denotes that the presence of chronic disease in the human body lowers their productive capabilities for instance those suffering from diseases such as diabetes type 2 thus resulting to increased absenteeism from employers. Attendance of work while ill leading to low or completely no production. Sick people lack the motivation to produce at their optimum. Higher production from the workforce is as a result of reduced cases of chronic diseases such as cardiovascular diseases. this has supplemented greatly to the addition of labor force which is energetic and can work for longer hours to and fulltime leading to increased gross domestic product and revenue in the nation.
When employs are fit, they become more creative and more competitive this is because it has led to reduced absenteeism for it reduces stress and leads to enhancement of self-image (Simmons & Kutz 2018, p. 89). The growth spurts in Australian economy has also been as a result of improved decision-making capabilities of people who are involved in regular workouts as it also increases the ability to make complex decisions. The morale of workers is boosted in a study by Saatchi & Saatchi.in a nut shell, it has led to better returns on investments. This means that planning an investment in the employees’ fitness program by registering them to any fitness center will help boost the production level of the business.
Conclusion
The industry also faces a number of challenges such as reduced number of clients due to the economic weakness currently but there is still hope for steady growth as the years go by. The importance of studying the economic status of the nation helps to give a clear view of the current situation of the country thus acting as a roadmap to what should be done to improve the economic status of the nation. The value added or contributed by each industry in the value chain can be summed up without the risk of doubling counting across industries. The income rate of any nation can be measured using two different ways; the GDP and GOP.
References
Begg, K 2017, ‘Assessing the Public Health Impact of the mHealth App Business’, American Journal Of Public Health, 107, 11, pp. 1694-1696, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Cheung, S, Lee, J, & Oksa, J 2016, ‘Thermal stress, human performance, and physical employment standards’, Applied Physiology, Nutrition & Metabolism, 41, pp. S148-S164, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Fernández, M 2016, ‘Physical fitness is associated with anxiety levels in women with fibromyalgia: the al-Ándalus project’, Quality Of Life Research, 25, 4, pp. 1053-1058, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Freudenberg, N 2017, ‘Assessing the Public Health Impact of the mHealth App Business’, American Journal Of Public Health, 107, 11, pp. 1694-1696, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Gallego, A 2017, ‘Economic Impact of Popular Culture in Cali, Colombia’, Studies In Latin American Popular Culture, 35, pp. 104-115, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Jimnez, C 2018, ‘Sectoral networks and macroeconomic tail risks in an emerging economy’, Plos ONE, 13, 1, pp. 1-17, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Kain, J 2014, ‘Association between childhood obesity, cognitive development, physical fitness and social-emotional wellbeing in a transitional economy’, Annals Of Human Biology, 41, 2, pp. 99-104, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Katzmarzyk, H, Gledhill, I. & Shephard, K 2011, ‘Weight Training Protocol: Impact of Diverse and Organized Exercise on Certain Components of Motor Fitness and Functional Variables Amongst Males’, International Journal Of Pharmaceutical Research & Allied Sciences, 7, 2, pp. 8-14, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Kocarev, L 2016, ‘The Impact of Services on Economic Complexity: Service Sophistication as Route for Economic Growth’, Plos ONE, 11, 8, pp. 1-29, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Ready, L 2015, ‘Assessing the Public Health Impact of the mHealth App Business’, American Journal Of Public Health, 107, 11, pp. 1694-1696, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Romero, P & , López, C 2018, ‘Sectoral networks and macroeconomic tail risks in an emerging economy’, Plos ONE, 13, 1, pp. 1-17, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Rutsohn, P, & Kent, C 2010, ‘An Assessment of the Economic Impact of Local Boards of Health on West Virginia’s Economy’, Hospital Topics, 88, 3, pp. 67-74, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Sarri., A 2018, ‘Weight Training Protocol: Impact of Diverse and Organized Exercise on Certain Components of Motor Fitness and Functional Variables Amongst Males’, International Journal Of Pharmaceutical Research & Allied Sciences, 7, 2, pp. 8-14, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Scarborough, J 2011, ‘Sectoral networks and macroeconomic tail risks in an emerging economy’, Plos ONE, 13, 1, pp. 1-17, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Simmons, N, & Kutz, S 2018, ‘Diversity of gastrointestinal helminths in Dall’s sheep and the negative association of the abomasal nematode, Marshallagia marshalli, with fitness indicators’, Plos ONE, 13, 3, pp. 1-21, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Sweep, H 2009, ‘Physical fitness is associated with anxiety levels in women with fibromyalgia: the al-Ándalus project’, Quality Of Life Research, 25, 4, pp. 1053-1058, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
Wickramasinghe, K 2018, ‘The impact of poverty reduction and development interventions on non-communicable diseases and their behavioural risk factors in low and lower-middle income countries: A systematic review’, Plos ONE, 13, 2, pp. 1-27, Academic Search Premier, EBSCOhost, viewed 26 April 2018.
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