Impacts not Opening Hours

Paying for Social Value: Impacts not opening hours

James Ellender explains how local government aquatic and recreation facilities can stay viable through and beyond COVID-19

As of the end of October, if you come from the 20% most deprived areas around Australian and New Zealand centres you’re 16.47% more likely to have cancelled your membership.

In the years to come the impact of COVID-19 on our local communities will not only be measured by the number who sadly lost their lives to the virus, but also the millions of people whose lives were indirectly impacted. This includes those who went from active to sedentary overnight. The forced closure of key community aquatic, fitness and recreation facilities has been widely documented, with most articles focussed on the immediate impact to the commercial sustainability of these businesses, with jobs and livelihoods at stake. What is less documented are the following three areas:

1.Older people and those from the most deprived areas have become and remain the most disengaged Reopenings have exasperated the change in the profile of use and demand for traditional community venues, with the current average age of a re-engaged member at 46, compared to 49 pre-COVID. On the surface this still presents an immediate commercial problem as on average younger members stay on average 6.33 months less than older members. This combination will inevitably lead to an even greater business viability cliff edge in the six to 12 months ahead. The average decline in membership numbers across states that are starting to plateau following reopenings is 25.3%, compared to preCOVID levels.

The ActiveXchange Data Science Team (who power the predictive models behind the SportsEye platform) are forecasting a further 10.3% decline in member numbers by 2021 due to this shift in membership profile - unless action is taken early. For a lot of facilities this will be the straw that breaks the camel’s back.

The members re-engaging are primarily the same 15 to 40 age group who we saw out doing squat thrusts in the parks through the lockdown period from March onwards, for whom activity is an ingrained and affordable part of their balanced lifestyles. But it’s this age bracket who are quick to jump between venues, have less loyalty and therefore represent a lower return on investment (ROI) for the operator. It’s this age group whose average membership length continues to decline (1.67-month decline leading up to COVID) with a further 2-8% decline expected in the months ahead.

Who we didn’t see, and still don’t see as much as we should in either the parks or back in centre are the over 70 year olds - these are the Tuesday morning aqua aerobics and Pilates generation, or those from the less affluent catchments. Juggling virus related health concerns, membership freezes and suspensions, followed by one-way systems, bottles of sanitiser on arrival, and out of bounds cafes (the café being as bigger driver for being active as the session itself), have sadly become a barrier too far for many.

For those from deprived areas, even a concession membership becomes an ‘unnecessary’ expense when your job is uncertain. For venues that have now been open for several months, the impact on these two groups is still the case, with membership suspensions gathering dust and fast becoming cancellations.

2.The health and wellbeing (Social Value) cost to local communities and government, which far outweighs any leisure subsidy As tracked by the SportsEye platform (and ActiveXchangeKPMG partnership, aligning with Federal Government published research), the average active member social value at an aquatic and recreation facilities centre has been generating a value of $1,127 per year across indicators such as mental health, diabetes, dementia, and types of cancer. However, the average member over 65 generates a value of $3,131 per year, highlighting the value of keeping this older generation engaged at this critical time. These are not intangible long-term costs, much of these are immediate burdens being absorbed by government’s current budgets.

The average sum of social value per aquatic and recreation centre (with pool and gym) per year is just over $1.6 million - far greater than any operational subsidy gap. It has never been more important to recognise the value of these critical assets in our community and put this data driven understanding behind protecting and supporting targeted services.

3.Making our communities more resilient, and not just to COVID-19, but to the health threats we live with on daily basis including future pandemics The argument for creating more active and healthy communities For people with a BMI of 35 to 40, risk of death from COVID-19 increases by 40% and with a BMI over 40 by 90%, compared to those not living with obesity. Other data found that in intensive care units, 7.9% of critically ill patients with COVID-19 had a BMI over 40 compared with 2.9% of the general population. 94% of COVID-19 deaths have at least one comorbidity present. The argument for protecting the most deprived communities 25% of critical care patients with COVID-19 are from the most socioeconomically deprived fifth of areas and 15% are from the least deprived. The age-adjusted death rate in the most deprived tenth of areas is double that of the least deprived areas. The argument for keeping the older generation engaged As of the end September 2020, 89% of COVID-19 related deaths were in those aged 70 and over. Shaping a silver lining - from leisure to health and wellbeing centres The vast majority of leisure and aquatic venues already have the data required to shift the focus of their venues from opening hours and membership sales, to health and wellbeing outcomes.

If COVID-19 is to have a silver lining for our sector we hope it will be this much needed pivot in how government interpret the value of leisure, aquatics and fitness venues and operator contracts, many of which are being examined and renegotiated at the moment.

This is the time for organisations to continue to evidence specific and planned community outcomes and societal impacts rather than just allocating subsidies to keep the lights on and plug the membership revenue gap. This should be the era of the new fully integrated health and wellbeing centre, a silver lining from this pandemic. What needs to happen next? There has never been such an abundance of statistics, opinions and politics. At a time when positive decisions need to happen quickly it’s never been more important that any organisation, no matter their size or experience with data can become more informed and connected, and implement best practice.

The SportsEye Network, which was recently backed by Federal Government’s Accelerator Programme to open up the platform for any sector organisation, is designed to empower data that is traditionally siloed and fragmented. SportsEye accounts help venue operators to use market insight and predictive modelling to make evidence-based decisions and connect with government to share this evidence and the impacts. These benefits can be summarised as follows: More recognition and influence (tracked through SportsEye Operator with options to share across into SportsEye Local Government accounts): •Health and wellbeing KPIs - tracking outcomes and impacts on a rolling basis and bring government closer to what facilities

are achieving and their growth potential; •Social Value - putting a $ value behind local impacts to protect and facilitate wider financial and non-financial support and partnerships. More targeted Interventions (SportsEye Operator): •Up to date benchmarks and forecasting - predictive modelling and market trends synced to your own data to identify potential risks and growth areas; •The venue offer - targeted programming to ensure the offer reflects trends for target demographic groups, and optimal pricing to reflect local affordability at this critical time while protecting revenue; •Targeted and tailored member re-engagement - focussed, tailored and proven communication to extend membership lifetimes; •New member acquisition - predictive modelling translated into new member campaigns that align with up lifts in short and long term revenue return forecasts.

Developed in partnership with KPMG, ActiveXchange’s research partner, the model assesses social value indicators across the reduced risk of cardiovascular disease, breast cancer, bowel cancer, type 2 diabetes and dementia as well as mental health benefits, health system savings, increased productivity, increased educational outcomes and reduced risk of drowning. ActiveXchange has reviewed and modelled member participation types across all programs and services, and built logic that assesses which members qualify for which social value contribution based on type, intensity, frequency

Case study: YMCA South Australia ActiveXchange through the SportsEye platform works with venue operators to support, protect and then grow health and wellbeing outcomes.

It’s been great to see the YMCA in South Australia continue to deliver positive outcomes last month, most notably the engagement of members from the lowest income areas around all their venues (34% compared to the industry average of 23%) and also ensure elderly members remaining active, with an average of 6.5 visits per month by those aged over 65, compared to 2.5 visits per month for the average member.

All of this has contributed to the organisation generating $10.5 million in annual savings across their communities last financial year, 29% of which was across mental health outcomes, followed by 16% on dementia, 14% on improved educational outcomes and 10% on cardiovascular disease.

Andrew Mundy, Chief Operating Officer for the YMCA South If COVID-19 is to have a silver lining, we hope it will be this much needed pivot in how government interpret the value of aquatic, fitness and recreation facilities and its contracts, many of which are being examined and renegotiated on the back of growing financial pressures. Importantly, the vast majority of facilities already have the data required to shift this focus with more than 100 facilities already using the tool across private operators, not for profits and government.

Together, our voice can be louder if connected, informed and championing the health impact of the communities we serve. James Ellender is Chief Executive of ActiveXchange. These services are available and used widely across Australia and New Zealand. For more information please visit www.ActiveXchange.org or

The Social Value Process

E: intelligence@ActiveXchange.org and regularity. When looking at facility membership data, for each specific indicator, our team look at Member participation data and age and gender to confirm the value of social savings that the member would bring based on the KPMG social values. We then look at that members visit attendance and session attendance for the past year and check whether the member qualifies for the minimum threshold that is required to bring in social value savings. ActiveXchange do this for all members and then aggregate it to a site level which calculates how value (money saved)

is generated for the community.

SportsEye Health and Wellbeing Dashboard.

Australia, explains “the YMCA in South Australia have adopted a data driven approach to align how our venues continue to meet the needs of local residents, and particularly those who are most vulnerable. SportsEye is helping us continue to plan then evidence the impact of decisions.”

Further insight within the SportsEye YMCA account helps to guide targeted operational and marketing decisions to ensure venues continue to reflect up to date market trends, tailored to meet the needs of each local community.

Enhance on the beachfront or poolside

New Lifeguard pods could help save lives on beaches this summer An innovative lifeguard tower could save swimmers from dangerous rips and even a shark attack, after being launched onto the Australian market in time for summer.

Unlike the traditional fixed observation tower, the Lifeguard Pod, it is fully portable and can be placed wherever it is needed on the beachfront or poolside.

The pod is the latest product to be released by Surveyor Lifeguard Towers, who have worked in the industry for more than 30 years.

On-duty lifeguards can now be positioned anywhere on the beach with a 2.4 metre elevation. It will assist response time in spotting swimmers in difficulty or any fins lurking too close to shore. The lifeguards are also sheltered from the blistering summer heat as well as wind and rain inside the fiberglass structure.

Ken Holloway, the Australian distributor for Surveyor, explains “one person every five hours dies of melanoma in Australia according to the Australian Cancer Council.

“Add the risk of infection from COVID-19, it makes good sense for managers of aquatic facilities to have their staff housed in a purpose-built observation tower clear of the public.”

The new tower also meets new recommendations handed down by the NSW Coroner following the inquest into the tragic death of Bronson Rhodes at Port Macquarie’s Flynn Beach in December 2017.

This includes having an appropriately qualified and experienced person being designated as an observer in an observation tower during patrol hours.

The Lifeguard Pod is a robust moveable unit which has a minimal visual impact can be easily towed into position by a 4WD or ATV. Made from moulded fiberglass, the unique cabin requires little maintenance other than a hose down after every shift and an oil rub of the stainless steel legs to prevent tea staining.

Surveyor Lifeguard Towers are common in mainland USA and the Hawaiian Islands, but are still relatively new in Australia. Among the first to install a tower was Waverley Council in Sydney which included it as part of a strategy to quicken their rescue response times.

The Lifeguard Pod provides storage for personal items and basic rescue equipment. The ergonomically designed seating position and cabin minimises back strain.

The Lifeguard Pod is a simple solution for the complex problem of minimising the risk to lifeguards and the public.

The Surveyor range of towers are also eligible for funding under the NSW Department of Primary Industries Observation Grant which is published in November each year.

The company also offers the Surveyor Lifeguard Observation Stand for commercial aquatic centres. For further information contact Ken Holloway on 0422 889 813, E: info@lifeguardtowers.com.au, www.lifeguardtowers.com.au The Lifeguard Pod from Surveyor Lifeguard Towers is now available in Australia it is needed on the beachfront or poolside. • • • • • steel legs to prevent tea staining.

on 0422 889 813,