Once the underlying business model for operating public swimming pools is examined (specifically, the factors that drive demand and those that drive costs), it becomes apparent that the prevailing service model is structurally challenged over the long term.
Demand Drivers
Demand for public pools is largely shaped by external and often inflexible factors, including population size and composition, seasonal conditions, household behaviour, affordability, and competing recreation options. In many regional and rural communities, demand is constrained by limited or declining catchments, ageing populations and changing lifestyle patterns. While targeted programming can influence participation at the margins, councils have limited ability to materially increase long-term demand beyond what the local community will support.
Cost Drivers
By contrast, the cost base of operating a public pool is dominated by high fixed and semi-fixed costs. These include staffing and supervision, energy and water, chemical treatment, compliance obligations, insurance, and ongoing maintenance of ageing assets. Importantly, these costs do not reduce proportionally when utilisation is low and often increase over time as assets age and regulatory requirements evolve.
Business Model
This creates a structural imbalance: demand is capped or declining in many locations, while costs are relatively inflexible and trending upward. Under this model, even well-managed facilities can experience growing operating deficits and increasing capital risk, regardless of local effort or efficiency improvements.
As a result, the sustainability challenge facing public pools is not primarily one of operational performance, but of business model design. Without changes to service models, funding arrangements, regional planning approaches or shared responsibility across levels of government, the current business model relies on councils absorbing increasing financial responsibility and risk burden over time.
Recognising this reality is critical. It shifts the discussion from short-term budget management or asset condition responses toward the need for structural reform, including alternative service models, regional approaches and clearer alignment between who pays for aquatic services and who benefits from the outcomes they deliver.
About Ravim RBC
Ravim RBC is a strategic consultancy assisting councils around Australia with service planning and conducting service reviews. Since 2014 our consultants have been shaping council services to align with community needs and expectations and preparedness to pay.
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