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Spa and the Wellness Lifestyle: Focus on the Growth of Spa and Wellness in the Philippine Market
What is it about wellness that drives people the extra miles to achieve it? Nowadays, the idea of going to the gym to have the perfect body; of selecting organic food as opposed to junk food; of undergoing aging reversal surgeries- all these have become all too common that 10 years ago, were not deemed necessary for people. Well times have changed. People's orientation are now geared towards achieving the lifestyle balance. On the one end, you have the stressful work milled around one's neck; and on the other is the constant search for relaxation.
Spa
It is in this very reason that the Spas have become pertinent
cultural force influencing not only how consumers manage their health,
appearance, and stress, but also how consumers socialize, spiritualize, travel
and work. Rising levels of income, education and sophistication among
travellers and consumers worldwide have dramatically elevated the consciousness
and desirability of spa treatments.
Secondly, spas of course, actually help improve health. For example, having a massage results in increased blood circulation, increased flexibility of muscles, detoxification of the body through the lymphatic system, decreased production of the stress hormone cortisol, and the release of endorphins, also known as the happiness hormones.
And then thirdly, there's
the socializing aspect of spa going - some facilities even have grouped
services, such as spa parties or sparties.
Spa Lifestyle
People go to a spa to
relax, rejuvenate, restore, one of the other or for all these reasons. There
are massages for those who want to get rid of muscle tightness and aches, and
also to get some pampering and relaxation. Others come for the body treatments
like scrubs and wraps to get rid of dead skin cells and acquire more nourished
skin. For some people, the visit is for relaxing facials. But generally, the
trip to the spa is for the purpose of looking good and feeling good.
And this is where the spa lifestyle comes in. It means
wellness is more important than just being pampered. The approach is being
promoted by destination spas. It was found that escape, relaxation and novelty are the most important travel motives and that pursuing health as a motive is not as important to experienced travelers as they are to less experienced travelers, hence the importance of health as a motive factor diminishes as one gains more travel experience.
Further, it was found that safety and security is the most important characteristic of a destination that tourists consider when planning to visit countries. Despite the general positive view about spas, there continue to be
concerns on perspectives about spas, of course as many still see it as a mainly
elitist past time.
Wellness Industry
Spas are already providing
wellness, even if they don't recognize it or claim it. The tradition of spa as
a place for healing , renewal, relaxation and feeling well positions the spa
industry as one of the most logical
sectors to take advantage of the wellness movement. Wellness also provides an
opportunity to reshape the image of spa and to position spa as an investment or
an essential element in maintaining a healthy lifestyle.
As a tourism product, health and wellness are popular contemporary tourism experiences. There is a consensus among thinkers in many disciplines and specialisms that a wellness industry exists. The trend of combining the benefits of a spa visit with a holiday has increased. Awareness regarding the benefits of healthy eating, nutrition, exercise, beauty, relaxation and pampering is increasing and people love to include those elements in their holidays or purposefully travel to achieve wellness. Either it is visiting local spa or traveling overseas, more and more people are opting to take break from their speedy life to pamper themselves, relax, and rejuvenate.
As interest in physical
well-being increases, spa therapy continues to be popular among consumers/travelers and has
been recommended by many medical specialists.
Market Potential
The market potential of spa
development is being captured by global and premium brand spas that have
expanded their service menus. At the same time, establishments that offer
traditional bathing, healing, herbal and therapeutic treatments derived from
centuries old practices also recognized the potential of branding themselves as
spas and some are investing in new services, equipment, facilities, as well as
modifying their ambiance.
Quite remarkably, the spa industry is growing
at a breakneck pace but its diversity and scope have always made it difficult
to quantify its size and financial strength, as well as to harness the full
power of its collaborative voice. The growth, admittedly
tremendous, shouldn't come as a surprise. For one, especially when times are
hard, and people want to feel good - if not with the situation, then at least
with themselves - and spa facilities can help make this happen.
Potential and Opportunities
There are a number of business
opportunities for the spa industry to pursue along the wellness continuum.
While some opportunities will require long term effort and investments, others
simply require spa owners and investors to make small adjustments to their
service offerings and reexamine their marketing approaches and customers with a
new, wellness oriented viewpoint.
An increasing number of
people are seeking an escape from the stresses of urban living, and a day spa
is an accessible sanctuary where they can relax and recharge. Spas
found outside the city are becoming popular destinations, serving as an oasis where travelers can forget their cares
and be pampered. Indeed, as this industry grows, consumers are becoming more
accustomed to this affordablee luxury, which in turn gives entrepreneurs the
opportunity to capitalize on different segments of the market.
The relatively lower prices
in the Philippines help make the country competitive . According to the University of Asia and
the Pacific, compared to local rates, visits to spas in Singapore ($81),
Malaysia ($51), and Thailand ($48), also adding to its growth potential.
Figures
According to the Global Spa
Economy Report, done by the Stanford Research Institute and released at the
Global Spa Summit in New York in the US at the end of May 2008, the global spa
industry is estimated to be worth over $250 billion (approximate worth of
$254.8 billion in 2007) - an amount including $60.3 billion in core spa
industry revenues (such as capital investments, spa facilities, education and
consulting, associations, and events), and $194 billion in global tourism,
hospitality, and real estate "enabled" by the spa industry.
The massive wellness
industry is fragmented by various global sectors. The highest generatimg sector
is beauty and anti-aging ($679.1 million), mind and body fitness ($390.1
million), nutrition and weight loss ($276.5 million) and preventive health
($243 million) are also identified as huge profit-generating sectors of the
wellness industry.
In the Philippines as of
end 2006, there were an estimated 87 spas operating in Metro Manila alone, a
figure 74% higher since 2003; and with those offering spa services varying, as
hotels and resorts jumped on the bandwagon, with 20% spas located in hotels and resorts and 76% of
spas stand-alone day spas. This according to Intelligent Spas which released
the Spa Industry Profile Philippines 2003-2007 that also noted the growing size
of spa facilities (averaging 609 square meters), with an average of 10.9
treatment rooms, making them the largest across the Asia-Pacific region.
The growth in the
Philippines is not just limited to Metro Manila. Cebu City already has 160 spa
centers, more than in Metro Manila and up from only 90 in 2006. In the Queen
City of the South, Cebu City for example the local health and wellness industry
is expected to grow further as more people seek out spa services. More people
have realized the benefits of going to a spa, even those in the lower middle
income bracket. The trend can be seen even among people who have never been to
a spa before. However, even with the growth many small spas will close and
those who will survive are those that have captured their own markets.
A mid-priced spa will cost
5 million for a 220 square meter space with a full water facility. One must
have enough capital to run the business for a year. While mass-market and
mid-priced spas go for volume to profit, posh spas have greater profit because
of their higher margins. To generate more income some spas open their doors to
functions and events.
Massages at midrange
category spas costing around P500 to P800 already covers the use of wet floors
and room. Treatments at luxury spas on the other hand are typically priced at
P800 and above depending on the exclusivity and extent of service.
Target Market
The first step to open up a
spa business is to identify the target market. Spas can cater to low, mid-range
and high-end clientele. A typical mid-priced spa has treatment and shower
rooms, and offers complimentary use of steam or sauna facilities. Some outlets
even have pools and jacuzzis. The ambiance is serene, with piped-in soft music
and simple interiors. The most important element, however, is water because spa
s healing through water.
The demographics of spa
goers have also changed in the last 20 years. A generational shift in the spa
industry has become more apparent; from a traditionally baby boomer industry,
the modern spas are now shaped by savvy spa goers who include members from
Generation X and Y.
Spas are not exclusive to
females. It is reported that while women make up the bulk of spa-goers, men
also go to spas for relaxation. This is underpinned by the ISPA's (2007b) study
which showed that men accounted for more than 40% of spa goers in Australia,
Austria, Germany, Japan, Singapore, Spain and Thailand.
Furthermore, savvy
spa-goers are shaping the trends. Spa professionals want to create the best
experience possible, so it's a buyers' market for consumers who express their
wants and needs. The spa lifestyle is in fashion, though it's also timeless. As
a leading leisure industry, spas have the staying power similar to that of
cruise lines, skiing and golf.
The changing demographics
in the spa industry can be linked to the changing lifestyles of spa-goers. Spa
going activity has presumably grown as a result of the busy and fast paced
lifestyle of people in many urban areas by becoming a form of preventive care
and stress management. In fact, ISPA's (2008b) Global Consumer Study reports
that "to relax and reduce stress" has become the core motive of many
spa goers. In addition, customized spa experiences which fit one's need have
become available in many spas (e.g. Wifi Internet). Indeed, spa going is no
longer about luxury but has increasingly become a necessity; it has become more
about the notion of health and the spa lifestyle.
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