New research from Portuguese fitness industry trade body AGAP has revealed green shoots of recovery in the embattled Portuguese fitness industry.

Health and fitness operators across Portugal were struck by the two-fold challenge of recession and a huge rise in VAT on fitness membership over recent years, with a dramatic impact on membership figures as gym fees increasingly became seen as an unaffordable luxury by many.

But new research unveiled last month – said to be the largest study of the fitness sector in Portugal to date, conducted by an independent research company on behalf of AGAP and with 395 brands participating, representing 477 private facilities – showed a second consecutive year of growth.

According to the report, member numbers grew by 24 per cent in 2013, to 236,811, and by a further 19 per cent in 2014 to 280,866. However, although more people joined than left in 2014 – 187,000 people joined a private facility and 149,000 left – the proximity of these two figures proves that Portugal is not immune to the retention challenge faced by the entire global fitness industry.

Nevertheless, there were other indicators of an upwards trend. In spite of average monthly fees falling as the Portuguese market migrates towards more low-cost clubs – the average price has dropped from €46 to €36.70 over three years (although it was even lower in 2013, at just €35.68) – revenues are broadly improving. In 2012, 85 per cent of clubs reported decreased revenues, with 40 per cent at risk of closure. In Q1 2013, 76 per cent reported decreased revenues, and 36 per cent in the second half of the year. In 2014, just 28 per cent reported decreased revenues; 40 per cent grew revenues in 2014 (compared to 37 per cent in 2013), while 32 per cent remained stable. The study indicates that 80 per cent of clubs have revenues below €25,000 a month.

It seems to be the larger clubs that are leading the upswing. Sixty-four per cent of clubs measuring at least 1,000sq m are growing in revenue; it's the smaller clubs that are reporting economic and financial pressure. In addition, all operators with two or more clubs without exception reported revenue growth or maintenance of performance.

AGAP president Jose Julio Castro says: "The sector has been growing strongly, after the crisis generated by the brutal increase in VAT and country bailout. This is evidence of the growing understanding among the Portuguese population of the importance of being physically active."