Medical Spas
MEDICAL SPAS ARE OPENING A CATEGORY
OF TRAVEL THAT GOES BEYOND WELLNESS
Beyond Wellness, Medical Spas are the Future
ABOUT THE AUTHOR Bernard Burt is senior editor and columnist for Spa Management Journal.
By BERNARD BURT
He authored “100 Best Spas of the World” and “Fodor's Healthy Escapes.” Updates and industry news are on his website SpaGoer.com As founding director of the International Spa Association (ISPA), Burt tracked international trends and brought together European, American, and Asian health resorts. In 2011 he became co-chair of the Washington Spa Alliance, creating a forum for health tourism and the spa community of the national capital region.
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In the not too distant past, physicians, nurses, aestheticians, and health professionals could be trusted to act ethically and nobly for the good of their patients. But the role of spas has been largely overlooked.
Data from The Global Wellness Tourism Congress (GWTC) documents this growing market. Susie Ellis, Chairman and CEO of the GWTC presented new findings at ITB Berlin last March. Yet among acres of exhibitors and buyers at the world’s largest travel trade fair, spas were not represented as Providing keys to a healthy lifestyle, spas are destinations.
opening a category of travel that goes beyond The newly released “Global Wellness Tourism wellness. Economy” report, based on research undertaken by SRI International for the GWTC, reveals that Europe WELCOME TO THE NEW WORLD OF is a wellness travel powerhouse: ranking No.1 WELLNESS TOURISM AND MEDICAL SPAS. globally for annual trips taken (203 million) and While the U.S. and Canada lag behind Europe in No.2 for expenditures ($158.4 billion USD or 115.3 development of wellness resorts, the American spa billion €). experience adds new dimensions, enhancing THE FULL REPORT COVERS 5 GLOBAL healthy lifestyles. REGIONS (WITH NATION BREAKOUTS): Overlooked is the fact that European wellness North America - and US breakout tourism has become a global market, accounting Asia Latin America for 40% of wellness-focused trips worldwide. Europe * Europe ranks #1 for wellness-focused trips taken Middle East - Africa. * Six of the top ten nations in the world for Wellness tourism is defined as “all travel associated wellness travel spend are in Europe * Germany dominates - driving one in 10 of all with enhancing one’s personal well-being,” Europeans drive nearly 2 in 5 of all trips taken - and dollars/euros spent in this travel category * Russia, Turkey and Poland ("The New Europe") euros spent - in this category every year. Six of the top ten nations for wellness tourism expenditures will grow fastest through 2017 May 2014 •
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are in Europe, ranking in order as: Germany, France, Austria, UK, Italy and Switzerland. And this wellestablished European travel market will see a 7.3% annual growth rate through 2017, with Russia, Turkey and Poland clocking the fastest growth. Speaking at the ITB Berlin Experts Forum on Wellness, Ellis noted: “Europeans are the most sophisticated, experienced wellnessand prevention-focused focused travelers on the planet. They not only take frequent trips within their own countries and across Europe, they’re also pegged as the largest source market for international wellness travel. And with so many European tourism boards – from Austria to Slovenia – now smartly promoting their unique offerings, the region will only continue to attract more health-minded travelers from all over the world.” KEY FINDINGS No. 1 in Trips: Europe leads the world in the number of wellness tourism trips taken annually (domestic and international combined). If 524 million such trips are taken worldwide each year, Europe represents 39% of the total, or 202.7 million. No. 2 for Expenditures: The global wellness tourism market is worth $439 billion, and Europe drives 36% of all expenditures ($158.4 billion USD or 115.3€ billion), ranking right behind North America, which grabs 41% of the market. SIX OF THE TOP 10 - AND 11 OF THE TOP 20 - NATIONS FOR WELLNESS TOURISM EXPENDITURES ARE IN EUROPE: Expenditures (in billions) & Global Rank for Expenditures: Germany - $42.2/30.8€ - No.2 France - $24.1/17.6€ - No.4 Austria - $14/10.2€ - No.5 UK - $12.3/8.9€ - No.7 Italy - $11.7/8.5€ - No.8 Switzerland - $11.4/8.3€ - No.9 Spain - $7.6/5.5€ - No.12 Russia - $3.8/2.8€ - No.17 Portugal - $3.4/2.5€ - No.18 Greece - $3.3/2.4€ - No.19 Turkey - $3.2/2.3€ - No. 20 www.medicalspasreview.com
Medical Spas
ANNUAL TRIPS (DOMESTIC + INTERNATIONAL, IN MILLIONS) Germany - 49.2 France - 27.3 UK - 17.8 Austria - 11.3 Switzerland - 10.1 Spain - 9.9 Russia - 9.9 Italy - 8 Turkey - 6.6 Greece - 4.5 Portugal - 3.4 GERMANY = REGIONAL LEADER The “Big Three,” Germany, France and Austria, currently account for over $80 billion USD/58 billion€ in wellness tourism spend yearly - or nearly 1 in 5 dollars spent in this global travel segment. And Germany ranks No. 1 by strong margins for both trips and expenditures in Europe: with 49.3 million trips and $42.2 billion USD (30.72€ billion) in receipts annually – trailing only the U.S. for both trips and spend. In fact, Germany drives nearly one in 10 wellness tourism dollars spent globally. German travelers also rank No. 1 among all nations for outbound/international wellness travel. Germans took 19.4 million trips abroad - more than twice as many as the far more populous No. 2 country, the United States, with its notoriously “passport-averse” population. DOMESTIC TRIPS DOMINATE – BUT LESS SO THAN GLOBALLY Worldwide, domestic wellness tourism is much larger than its international equivalent, accounting for 84% of trips. In Europe, domestic trips are slightly less dominant, at 77%, due to the ease of border-hopping across the continent. That may be why, after the U.S., four of the top five nations worldwide for international wellness tourism arrivals are in Europe: No. 2 France drives 6.9 million inbound trips; No. 3 Austria, 5.7 million; No. 4 Germany, 5.6 million; and No. 5 Switzerland, 5.1 million. And five European • May 2014
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Medical Spas
WITH NEW REGULATIONS DOCTORS ARE SEEKING
NEW PARTNERS TO EXPAND THE MEDICAL SPA MARKET
nations actually generate more international widely acknowledged “multiplier” effect that arrivals than domestic trips: Austria, Switzerland, individual industries have on overall economies, this travel segment actually has an estimated impact of Ireland, Croatia and Iceland. $451.7 billion (328.4€ billion) on the wider European economy. But Europe is, of course, also a global domestic wellness tourism leader: Seven of the top 10 – and 13 of the top 20 – nations for domestic This European breakout is the first of 5 global expenditures are in Europe. Germany and the GWTC reports. Data on the Asian, North American, United Kingdom are the standouts: the former Latin American and the Middle Eastern/African ranks No. 1 in the world for domestic wellness wellness tourism markets will be released in coming tourism expenditures ($19.4 billion, or 14.1 € months. billion), while the latter ranks No. 3 globally with “With more people embracing wellness-focused $6 billion (4.4€ billion). travel around the world, you could almost say that global tourists are waking up and ‘turning $225 BILLION MARKET BY 2017 Europe will see a strong 7.3% annual wellness European,” noted Ellis. “Because Europe has known tourism spend growth by 2017, with the market the very best – and the very longest – the true value growing from $158 billion (115.3€ billion) to of healthy travel experiences that restore and $225 billion (164€ billion). Europe’s growth rate is rejuvenate.” slightly lower than the global average of 9.9%, because it’s already such a large, mature market. ABOUT THE GLOBAL WELLNESS TOURISM And it will be developing nations like Russia, CONGRESS: Turkey and Poland that will see the biggest annual, The Global Wellness Tourism Congress (GWTC) double-digit increases. But note that current brings together public and private stakeholders to regional leader, Germany, will still add the most chart the course of the rapidly growing wellness tourism sector. Attendees include government trips through 2017 (12.7 million). ministers of tourism, health and economic The top ten fastest-growing European nations, development; CEOs of private companies; leaders identified by SRI International based on a and visionaries in related arenas such as medical combination of annual growth rate and total trips tourism; and other industry VIPs who present data, added (listed below), also rank in the top 20 engage in open dialogue and map the future of globally for total wellness tourism trips added wellness tourism. The next Congress will be held on September 10, 2014 at the Four Seasons Resort in through 2017. Marrakech, Morocco. Russia 13.1% - 8.5 mil. For more information on the “Global Wellness Turkey 12.6% - 5.4 mil. Tourism Economy” report, contact Beth McGroarty: Poland 12.4% - 4.1 mil. beth@rbicom.com or (+1) 213-300-0107. The full Switzerland 8.9% - 5.4 mil. report can be obtained for $895. Hungary 8.9% - 2.4 mil. Czech Republic 8.9% - 2.1 mil. THE GLOBAL MEDICAL RESPONSE Austria 6.9% - 4.5 mil. Faced with excessive new regulations by Spain 6.2% - 3.5 mil. governments, doctors are seeking new partners to France 5.5% - 8.3 mil. expand the wellness market. A leading advocate for Germany 4.7% - 12.7 mil. medical spas is Dr. Ronald M. Klatz, MD, DO, president/co-founder of the American Academy of EUROPEAN ECONOMY & JOB DRIVER Wellness tourism is responsible for 2.4 million Anti-Aging Medicine (A4M), who says we are DIRECT jobs across Europe. And because of the natural allies. With a global membership of 26,000, 18
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the A4M is providing a roadmap for clinicians to learn about the spa world. Bureaucrats from state and other licensing boards have in recent years discovered that the road to job security and advancement is to create layer upon layer of regulation - not law but administrative regulation - which has the power of law for the practitioner, commented Dr. Klatz at the recent Spa Marketplace in Hawaii. “Without any pushback from clinicians who are busy trying to stay in practice in an ever-shrinking economic environment, regulatory edicts limiting the practitioner threaten the wellness tourism market.” While regulatory edicts have grown like cancer, some spa-like services are covered by Obamacare. Critics, including Dr. Klatz, say U.S. medical providers must adapt and adhere to hundreds, perhaps thousands, of new regulations to make preventive medicine available to more people. TOURISM INDUSTRY ACTION PLAN Despite the double whammy of federal health insurance and new state licensing in the U.S., global medical and wellness tourism hold strong potential to become major growth industries. The first-ever wellness tourism roundtable was held in London on April 1st, gathering influential European thought leaders from Visit England, Spain Tourism, Portugal Tourism, The Travel Foundation, and Moroccan Tourism, among others. The event was organized by The World Travel & Tourism Council to discuss the varied challenges and opportunities presented by this rapidly growing tourism niche. Similar roundtables are to be scheduled in Washington, DC, and New York City. For more on the Global Wellness Tourism Congress, visit www.gsws.org ■
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Medical Spas
SPA INDUSTRY REVENUES REACH $14 BILLION IN 2013 The International SPA Association (ISPA) 2013 U.S. Spa Industry Study conducted by PricewaterhouseCoopers showed signs of positive growth for the industry. ISPA President Lynne McNees, said, “This year’s annual United States study paints a very positive picture for the spa industry and reflects what we are hearing from our members. It is encouraging to see the total number of spa visits back at its pre-recession peak and even more encouraging to see total spa industry revenue reach a record high $14 billion.” The upward momentum of the spa industry has positively impacted the overall United States economy. In addition to generating $14 billion in revenue in 2012, the industry employed more than 343,000 individuals in the United States. The total number of spa visits increased to 160 million and the average guest spent $87 per visit. "The key message reported by a wide range of spas in the US was the return to growth,” said Colin McIlheney, PricewaterhouseCoopers global research director. “All the key indicators such as number of visitors and total revenues are showing an uptick." • May 2014
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