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THE AMERICAN CLUB
JUL / AUG 2016
GENERAL
MANAGER
FROM THE
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
The Club then...