Magazine Jul/Aug 2016

GENERAL MANAGER FROM THE

The Club then...

Our thriving community is about to experience the most significant change since the late 80’s when the Claymore Building was added to the total Clubhouse offering. With work already begun shifting services out of the Scotts Road building, shutting down the Pool and Poolside restaurant, and redeploying staff throughout the operation, a significant amount of communications would already be evident; thank you for taking the time to keep yourself and your families informed of all these operational shifts. While the recent transformation process has become apparent, I thought I’d take this opportunity to highlight the fact that operationally, there have been significant advancements and new business trends in place for many years. Although these changes have been periodically shared with the membership, it seems appropriate to revisit a few of these key factors with the objective of underlining the fact that our club business is very different today than what it was just 10 years ago; in fact, you could benchmark these developments against an even shorter period of time. Membership continues to be the lifeblood of our business, and joining fees as well as monthly dues contribute significantly to The Club’s reserves and cash flow. However, many are now aware (and have personally experienced) that the “Expat Package” is on a steady decline, and the communities and facilities offered by condominiums and schools are becoming strong alternatives. Other clubs are providing enticing cost-efficient membership options. In FY05-06 we had 463 new memberships compared to just 364 at the end of FY14-15. Though it may not seem like a significant difference, this shortfall translates to a gap of millions of dollars in joining fees, monthly dues and Member spending each month. As just mentioned, the market now provides substantial alternatives, but has also become increasingly competitive – in every facet of our business. When I first arrived in Singapore in 1999, I can remember a single gym brand dominating Orchard Road. Now, there are a multitude of fitness and wellness organizations with studios and gyms island-wide catering to every segment of the market. The food and beverage industry has grown incredibly vibrant, as have children’s summer camps and birthday party venues, health and beauty service options – the list

3

THE AMERICAN CLUB JUL / AUG 2016