Guanyin Sports Center Contract Terminated After Two Years Amid Audit Findings

The Guanyin National Sports Center in Taiwan has terminated its 5-year operating contract prematurely, with the agreement ending after just two years. The operating company cited insufficient local population, remote location, and inconvenient transportation as reasons for continuous losses.

An audit report revealed significant issues with the operator's performance. The company was required to invest NT$9.98 million within 30 days of winning the bid, but had only invested NT$6.13 million by the contract's termination, falling short by NT$3.85 million. The audit also identified shortcomings in profit contribution and financial reporting, indicating problems with the city's oversight.

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Guanyin District's population is only over 70,000, with severe outward migration and an aging population.

Specifically, the operator failed to adequately contribute to public welfare funds and provide verifiable financial statements. Issues also included delayed website launch, unrepaired facilities, and unmaintained grounds. The Sports Bureau attributed the poor performance to Guanyin District's small, aging population and a nascent market for paid fitness activities.

To improve the center's viability, officials plan to introduce diverse paid courses for seniors, such as fitness and yoga, and guide existing free-access users towards advanced programs. They also aim to partner with local tech park companies for employee wellness programs and coordinate with schools for swimming and sports training. Efforts are underway to improve public transport to the center, including potentially adding new bus routes and a dedicated shuttle service.

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The leisure and sports market in Guanyin District is not yet mature, and the public's habit of paying for exercise still needs to be cultivated, leading to a low average spending per person and overall operating revenue performance that is lower than expected.