Despite popularity, clubs face difficulties making profit

A rock climer in Qingdao, Shandong province. A guided excursion led by professionals can cost thousands of yuan. [Photo/China Daily]

It's not only small, private outdoor sports clubs that have trouble making profits. China's largest outdoor sports club, measured by its number of members, is also not bringing in enough income.

"Our revenues can only cover 40 to 50 percent of our costs," said Zhang Chaohui, director of Sanfo Outdoor Club.

The club, founded in 1998, has eight branches in China and has enrolled more than 70,000 members.

Sanfo has hired more than 200 part-time guides and spends substantial sums to train and pay them, Zhang said.

At a minimum, they can make from 300 yuan to 400 yuan a day to lead excursions, she said. Sanfo places guides into four groups according to their abilities.

The Beijing club has begun to follow a practice that is common in Shanghai and now charges those who take part in an excursion a service fee ranging from 10 yuan to 20 yuan, Zhang said.

"I believe these fees will help support the business in the future," she said.

Some industry insiders say outdoor sports clubs should place a priority on improving themselves rather on than making money.

"The industry and these sorts of pastimes are just starting to take hold in China, and business insiders should pay more attention to making the industry better," said Tao.

The outdoor sports industry is now held to few, if any, official standards.

By 2011, only 2,000 outdoor sports clubs in China had obtained official registrations, Zhang Chaohui said. In all likelihood, there are many more unregistered clubs.

"These clubs' identities are another question," said Zhang, who has registered her club as a sports company. "Do they have to do with sports or tourism?"

Likewise, guides aren't required to meet particular standards before they lead outdoor sports excursions. Many accidents result from mistakes by guides.

wangwen@chinadaily.com.cn