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Based on 2018. According to a study conducted by the World Institute of Health, 10.1 percent in Lithuania all adults participate in the health market. According to the same study, the average annual cost per participant in the sector is € 330. Calculating the size of the sector, the health sector in Lithuania before the pandemic amounted to 93 million. Around 270,000 people attended.
“We are still facing the misunderstanding by the Lithuanian government that world health and sports is a huge industry that generates public benefits and reduces financial pressure on the healthcare sector in an aging society.” In Lithuania, this sector has also grown significantly over the last decade and has contributed to the economy. The growing habit of a healthy lifestyle also encourages other related activities, from clothing to inventory, ”says Vidmantas Šiugždinis, President of LSKA.
According to LSKA calculations, the Lithuanian health segment before the pandemic accounted for 7.8 percent. The turnover of Lithuanian service companies grew by around 15 percent. by year.
“As of 2020. we are closed on November 7. In the last 12 months, services have not been provided for half a year and services have been restricted for the rest of the period. In addition, the activity of the sector is very seasonal and The main sales of the year take place in October-March. 2021 Neither the visitor flow nor the revenue stream will be able to recover yet, regardless of the opening date of the clubs; it is possible to return to the slopes in 2022 at the earliest. end of the year, but until then we have to survive ”, says V. Šiugždinis.
Although LSKA positively appreciates the 2021 efforts of the state to provide relief measures in the second aid package to compensate for the loss of more than 60% of GPM or business costs. revenue, but a third urgent support package is already needed for the worst hit companies. The income of sports and health clubs has been reduced by 90-100% during quarantines, and the GPM subsidy is not a complete way to finance the sector, as rents and utilities are the most important costs for a lot of freelance coaches. .
“We do not understand why the proposed reimbursement of rental or utility costs is limited to 2021. February-April: Sports clubs have been closed since November. And considering the first quarantine and the special seasonality of the business, the only way to Saving the sector is compensating for the loss of income. Only in this way will it be possible to finance activities during the deficit summer season and continue into autumn, “said V. Šiugždinis.
In a survey conducted in 2021. conducted by the association in January, up to 90 percent. respondents indicated that they were at risk of bankruptcy without emergency assistance.
ECONOMIC RESCUE PLAN FOR THE SECTOR PROPOSED TO THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA
1. Refund for 6 months. health club turnover, based on 2019 average. income through lump sum payment to continuing businesses
2. Acquire health sector services for workers in the social sector. After the opening of the clubs, the services could be used for 12 months. strengthen health and immunity and recover from the negative effects of quarantine and coronavirus. The amount proposed for services per person is up to 200 euros. A total of at least € 20 million will be allocated to the measure. euros.
In order to strengthen the sector in the long term and comply with the EU indicators in the field of preventive public health, and thus save public funds for the protection of long-term health, we propose to initiate amendments to the laws and acts relevant legal:
3. Apply 5 percent. reducing the VAT rate for sports and health services as one of the state’s key priorities.
4. Allow the inclusion of sports and health services in company costs, thus encouraging employers to invest in the health of their own employees and save state funds for health.
LSKA calls on the Government to take immediate action and make a concerted effort to ensure that sports and health clubs are not only opened as soon as possible, but also receive a financial support package as one of the most affected business sectors. Furthermore, many global and European studies have shown that the incidence of Covid-19 health club infections is particularly low.
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