Senior Reporter
jesse.ramdeo@cnc3.co.tt
The increasing weight of operational costs and other factors has forced major commercial gyms to flex their financial muscles by increasing membership fees.
Gym owners say as the fitness industry evolves, timely steps to sustain the services have become necessary.
The people who have made New Year’s resolutions, promising themselves “New Year, New Me” will, in some cases, now have to pay up to $50 additional to sculpt their improved physique or obtain six-pack abs that have been elusive for years.
From as far back as last month to as recent as Tuesday popular gyms including Evolution Fitness, Raw Fitness and Health club, Health and Fitness gyms, Central Athletic Club, CLX Gyms and the Bar By The Beast gym have all pushed up their prices.
Managing director of the Bar By The Beast gym in Grand Bazaar, Kahlil Ramsubhag explained that absorbing operational costs have been weighing them down.
As such, the move to adjust membership fees had to be taken, Ramsubhag said during an interview with Guardian Media on Tuesday.
“Using our standard membership prices, right now we are at $399 and our increase will take us to $445. A lot of comments that we’re seeing on social media have made it seem as though this was a decision that was taken lightly, that it was a decision just to increase profits but that is not the case.”
Based on the statements issued, increases in operational costs appeared to be the biggest factor behind the membership fee adjustment, according to a notice shared by Central Athletic Club.
The membership increase which took effect on Monday was as a result of “an escalation in prices in our materials and overhead costs over the last few years”.
A statement from CLX Gym providing an update to customers indicated that “despite our ongoing efforts which include absorbing the mentioned increases, the current circumstances indicate that we cannot sustain our existing operational cost structure.”
Ramsubhag said the decision to increase membership fees were not solely linked to the “gains” and that it reflected the investments required for the fitness industry.
He said, “Post COVID, what happened is we saw an increase in our general maintenance. General maintenance would be the cleaning of the facility and maintenance of it. However, post COVID we had to institute a lot of more stringent cleaning systems and it meant that there was an increased cost coupled with it.
“We also had a lot of consumables that were being utilised. It’s also the same with gym equipment and the maintenance of gym equipment, which include commercial pieces. They aren’t the treadmills you have in your house; this is commercial equipment that require specialised parts and services.”
But even with the traditional surge for those seeking to get their bodies in Carnival shape, Ramsubhag said he expected to see shifts in turnout.
“We expect there to be a little bit of uncertainty in terms of the increase in price. We try to be as transparent as we could with our clientèle in terms of explaining the reasons for the increases. It is not only gym facilities faced with this burden, a lot of businesses have to restructure their prices to be economically viable.”
Business groups had previously warned that a tough new year awaited the public, as some say they will have no choice but to pass the electricity rate increase onto their customers.
While “Commercial B1 Customers” will see the percentage increase in their bills reduced from the previous range of around 51 per cent to 63 per cent to a range of 37 per cent to 51 per cent, other commercial customers will see an increase between 10 per cent to 11 per cent.
The Regulated Industries Commission (RIC) explained last year that B1 customers are usually small to mid-size enterprises (SMEs) with a lower consumption than larger businesses, however, San Juan Business Association (SJBA) president Ibrahim Ali said any additional increases in operational costs will have a serious effect on businesses that are already reeling from other external pressures.
Tobago Chamber of Industry and Commerce (TCIC) chairman Curtis Williams, said there were concerns that landlords will be raising rent for business tenants.
Williams questioned the timing of the increase and if it will have the desired impact.
Some gym owners and operators also attributed the increase in membership fees to increases in their rental fees, and with property tax set to roll out there were concerns about its impact on operating costs.
Finance Minister Colm Imbert had previously assured that Property Tax will commence from January 1, 2024.
“We do intend to collect property tax in 2024…I want people to understand that property tax is applicable from January 1, 2024.”
Last week Imbert issued a statement clarifying Property Tax “misinformation”.
“It is to be noted that by law, only the Board of Inland Revenue can notify taxpayers regarding the amount of property tax they are required to pay, while the Valuation Division is solely responsible for determining the annual rental value of properties to allow the BIR to calculate the property tax,” he said.
“The Property Tax payable is, in fact, only 2.7 per cent of the Annual Rental Value stated in the Notices of Valuation. So, if a residential property has been assessed at an annual rental value of $60,000, the tax payable is $1,620 per year or $135 per month. If a property has been assessed at an annual rental value of $18,000, the tax payable is $486 or $40.50 per month,” Minister Imbert explained. He also pointed out that the property tax for more than 60 per cent of all properties in T&T will be between $486.00 per year ($40.50 per month) and $1,620 per year ($135 per month).
