Despite popularity, clubs face difficulties making profit

A woman rock climber in a competition in Zhangxian, Gansu province, August 3, 2012. [Photo/Xinhua]

On a July weekend, Wen Jie went with 19 other people to the Bashang grassland in Hebei province to stay at a camp organized by an outdoor sports club in Beijing.

"It was cheap," said Wen, a 28-year-old woman who works in an office in Beijing. "I spent less than 300 yuan ($47) for the two-day trip."

Wen said she had been intending to drive to the grassland for two years but hesitated to go because she knew little about the place.

"The outdoor sport camp cleared up all my questions," she added.

Wen is a novice among those who have lately taken to outdoor sports. Large numbers of Chinese have only begun to take part in pastimes such as hiking and rocking climbing in the most recent decade.

According to surveys conducted by the Luye Rescue Team, one of the best-known organizations of its sort in Beijing, more than 3 million people take part in outdoor sports in Beijing every year.

In response to that increasing popularity, more and more outdoor sports clubs have opened in China.

How are they faring? Most of them say they are still far from being profitable, saying that the Chinese are not used to paying for the services the clubs offer.

"About 80 percent of participants prefer to divide the costs of hiking, mountain-climbing and camping excursions among themselves," said Tao Yongfeng, a 27-year old network engineer, who is also a part-time outdoor sports guide.

It is possible to make money in the business of arranging outdoor sports excursions. But few people in China want to pay for such a service because of the high costs and such trips can tax their abilities.

Going on outdoor excursions led by professional guides can cost hundreds of thousands of yuan. That far exceeds the cost of joining a regular tourism group.

Tao said his sports club, which employs six part-time staff members, organizes excursions for fun, not for profit. To take part in them, a person pays no more than 200 yuan for transport and accommodations, he said.

"Outdoor sport clubs can act as economy travel agencies," said an organizer for one of the clubs who declined to provide her name.

She said the club sometimes organizes excursions for commercial purposes.

"That does not mean an excursion organized for commercial purposes will always make a profit," she said. "It depends on the cost."

She said her club's greatest expense is advertising.

About a month before an excursion, the club will often post advertisements on outdoor sports websites, which typically charge from 3,000 to 8,000 yuan a month, she said.

"Some websites are free," she said. "But we want to get more exposure to draw more participants, which has a large effect on profits."

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