RESEARCH REPORT: GLOBAL SPA SUMMIT 2011 …

1 RESEARCH report : GLOBAL SPA SUMMIT 2011 wellness tourism and medical tourism : Where Do Spas Fit?We gratefully acknowledge the support of our sponsors who made the RESEARCH and this report possible:Fairmont Raffles Hotels International, Canada Murad Inclusive Health Centers, United States Red Door Spas, United States ResortSuite, Canada SpaFinder, Inc., United States SpaSoft, United States Westin Hotels and Resorts Worldwide, United States YeloSpa, United StatesWellness tourism and medical tourism : Where Do Spas Fit? About GLOBAL Spa SUMMIT The GLOBAL Spa SUMMIT (GSS) is an international organization that brings together leaders and visionaries to positively impact and shape the future of the GLOBAL spa and wellness industry. Founded in 2006, the organization hosts an annual invitation-only GLOBAL Spa SUMMIT where top industry executives gather to exchange ideas and advance industry goals.

2 For more information on the GLOBAL Spa SUMMIT , please visit: About the RESEARCH Team Katherine Johnston: Katherine Johnston, independent consultant, was the lead author and researcher for two major industry studies commissioned by the GLOBAL Spa SUMMIT : Spas and the GLOBAL wellness Market (2010) and the GLOBAL Spa Economy study (2008). Also serving as a Senior Economist at SRI International, Ms. Johnston has extensive experience in industry cluster analysis, regional competitiveness assessments, economic modeling, and economic strategy development. Since joining SRI over 11 years ago she has conducted economic and industry RESEARCH projects in over two dozen countries and many states and cities. She has also conducted studies for numerous corporations, nonprofits, and international organizations, including the FedEx Corporation, the Ford Foundation, the International Finance Corporation, and the UN s International Trade Centre.

3 L szl Puczk : Dr. L szl Puczk is a managing director and head of the tourism section at Xellum Ltd. He has served as a Board Member of the Travel and tourism RESEARCH Association Europe Chapter Board (2008-2010), Professor at Corvinus University Budapest ( tourism Competence Centre), and President of the Association of tourism Consultants (Hungary). He is also co-author of the book Health and wellness tourism . Dr. Puczk s main areas of expertise are in tourism RESEARCH , strategy preparation, planning, and management in the following areas: health/ wellness /spa tourism , heritage and cultural tourism , national/regional/local planning, and product and project development. He has led over 100 regional and international consultancy and RESEARCH projects in these areas.

4 Melanie Smith: Melanie Smith (PhD) is a lecturer, researcher, and consultant from Corvinus University of Budapest, specializing in wellness tourism and medical tourism . She is chair of The Association for tourism and Leisure Education (ATLAS) and founder of the ATLAS Spa and wellness Special Interest RESEARCH Group. She is also co-author of the book Health and wellness tourism , as well as several journal articles and book chapters on this theme. Dr. Smith has undertaken RESEARCH studies on holistic tourism worldwide, wellness tourism in Europe, and Muslim wellness traditions, and she is currently establishing a project on the role of thalassotherapy in seaside (re)development. Susie Ellis: Susie Ellis (MBA) is president of SpaFinder, Inc., the leading GLOBAL spa/ wellness media and marketing company.

5 Author of SpaFinder s annual Spa Trend report , now in its eighth year, she is a recognized industry analyst and speaker and a regular contributor to NewBeauty magazine. Ms. Ellis is a founder and board member of the GLOBAL Spa SUMMIT , and a member of the board of the Center for medical tourism RESEARCH (CMTR) and the Spa Advisory Board for the University California-Irvine s Spa and Hospitality Management Program. Her articles are featured in leading industry publications, and she is frequently quoted in media including The New York Times, USA Today, and The Daily Telegraph. wellness tourism and medical tourism : Where Do Spas Fit? GLOBAL Spa SUMMIT LLC 2011 Table of Contents Introduction .. i Executive Summary .. iii Part I: wellness tourism and medical tourism : Where Do Spas Fit?

6 Key Findings and Analysis .. 1 A. Definitions .. 3 B. Data .. 21 C. Organizational Structures .. 27 D. Promotion and Development .. 30 Part II: Case Studies on wellness tourism and medical tourism .. 37 Australia .. 41 Austria .. 44 Brazil .. 47 Canada .. 50 Hungary .. 54 India .. 57 Indonesia .. 60 Jordan .. 63 Morocco .. 66 Philippines .. 69 South Africa .. 73 Thailand .. 76 Other Emerging Concepts, Products, and Regional Initiatives Related to wellness tourism and medical tourism .. 80 Part III: Spa Industry Survey on wellness tourism and medical tourism .. 86 Part IV: wellness tourism and medical tourism : Where Do Spas Fit? Recommendations .. 104 Bibliography .. 108 121 Copyright This report is the property of the GLOBAL Spa SUMMIT LLC. None of its content in part or in whole may be copied or reproduced without the express written permission from the GLOBAL Spa SUMMIT .

7 Quotation of, citation from, and reference to any of the data, findings, and RESEARCH methodology from the report must be referenced as follows: GLOBAL Spa SUMMIT , wellness tourism and medical tourism : Where Do Spas Fit?, May 2011 . To obtain permission for copying and reproduction, or to obtain a copy of the report , please contact the GLOBAL Spa SUMMIT by email: or through: wellness tourism and medical tourism : Where Do Spas Fit? GLOBAL Spa SUMMIT LLC 2011 wellness tourism and medical tourism : Where Do Spas Fit? GLOBAL Spa SUMMIT LLC 2011 i Introduction As medical tourism and wellness tourism are growing and garnering increasing attention in countries around the world, both businesses and governments are grappling with how to define, organize, and promote these sectors.

8 This conundrum is especially challenging for the spa industry, because spas can and do offer services and products that cut across both the wellness tourism and medical tourism realms, and the integration of spas into these markets varies widely across different countries and regions. This report aims to synthesize the key trends, developments, and challenges emerging with the growth of medical tourism and wellness tourism , and to present a number of considerations and recommendations for the spa industry to take full advantage of medical tourism and wellness tourism opportunities moving forward. While there is a growing archive of medical tourism RESEARCH , the focus on the newer concept/market of wellness tourism in this report is a crucial industry first.

9 Governments, tourism associations and the press may have devoted more attention to the more established medical tourism , but SRI International, in their landmark report Spas and the GLOBAL wellness Market (released at the 2010 GLOBAL Spa SUMMIT ), found that wellness tourism already represents a $106 billion GLOBAL industry generating more than double the revenues of the $50 billion medical tourism market. Analyzing the emerging opportunities for spas and how they can best position themselves within wellness tourism , is an idea whose time has come. The analysis and recommendations presented here are based on three core pieces of RESEARCH , conducted during February-March 2011 : 1) In-depth case study RESEARCH on 12 countries that are considered to be leaders or emerging players in medical tourism and/or wellness tourism .

10 The 12 countries were selected to showcase the variety of ways in which countries are looking at (or not looking at) medical tourism or wellness tourism , and special effort was made to select countries representing all regions of the world. The RESEARCH methodology included both primary and secondary (web-based) approaches, including telephone interviews with 40 individuals who play leading roles in developing, promoting, and/or analyzing medical tourism and wellness tourism in the 12 selected countries. These case studies represent probably the first attempt at compiling and presenting comparable, in-depth, country-specific analysis and data about medical tourism and wellness tourism developments in countries around the world. 2) A web-based survey of spa industry leaders around the world (as represented by delegates of the GLOBAL Spa SUMMIT and their colleagues and associates), collecting industry insights and opinions on the opportunities and challenges presented by medical and wellness -related tourism developments.