India ? the spa destination

 Medical, wellness and health tourism are three segments that have seen growth of varying levels across countries of the world. Spas form an integral part of the wellness tourism industry. The definition of wellness tourism as per Global Spa Summit is: Wellness Tourism involves people who travel to a different place to proactively pursue activities that maintain or enhance their personal health and wellbeing, and who are seeking unique, authentic or location-based experiences/therapies not available at home.
As per Global Spa & Wellness Summit and SRI International report, there is an upward movement in growth of the global spa industry. It has grown from USD 60 billion in 2007 to an estimated USD 73 billion in 2012. Asia has fast-growing markets with revenues increasing at the rate of 20 per cent annually. SRI International has estimated that 22 per cent increase has taken place in the total number of spas across the world from 71,600 in 2007 to 87,000 plus in 2012.
Success and growth of global spa industry is also a reflection of fast-growing spa markets in developing nations. India has been one of the major countries in the world offering wellness tourism — given its rich traditions of Ayurveda, meditation, yoga and other spiritual and healing practices. As per the ministry of tourism, department of AYUSH1 and NABH2, wellness centres include spas, ayurveda centres, yoga and naturopathy centres, fitness centres, and skin care centres, etc. Accreditation of wellness centres is under NABH as per quality standards defined for evaluation. The ministry of tourism has also devised incentives for accredited wellness centres and ayurveda hospitals to promote this segment.
As per Spa Association of India (SAI), there are over 2,300 spas in the country generating revenues of about USD 400 million per annum. A double-digit growth rate is estimated in the wellness industry over the next five years, with sectors like spa and beauty treatments, forecasted to grow at 35 to 40 per cent.
About 30 per cent growth in the inventory of spas is expected over the coming 2 — 5 years. The factors driving the surge in spas in India are growing annual disposable incomes, increasing health awareness and high potential of good returns on investment for existing as well as new entrants.
Given India’s strong ayurvedic and yoga background, the country receives increased attention from foreign travellers for wellness treatments. India’s spa industry is witnessing increase in demand of the indigenous spa facilities which have modern designs and a combination of western and traditional therapies. Currently, India has roughly 20 — 25 major spa centres, majority of them being in South India, the main states being Kerala and Karnataka. Kerala is considered to be the centre of ayurveda and wellness tourism with many other states witnessing growth due to investment in services, products and promotions. Kerala is already offering destination spa packages all year round. However, the world’s top spa destination namely Ananda Spa — Ananda in the Himalayas is located in North India in Uttaranchal as per ranking given by the Conde Nast Traveller Readers Spa Awards of 2012. Although, destination spa is an even smaller market as compared to day spas and resort spas, however, it does direct in innovation in providing an inclusive mind-body-spirit experience. Globally, destination spas comprise only two per cent of the total number of spas but contribute about 13 per cent of the industry revenue and 9 per cent of the industry employment.
Vana Retreats will launch a wellness resort namely Vana, Malsi Estate in Dehradun in late 2013 which is going to be another example of destination spa in India for holistic wellness, ayurveda and yoga. Also, another destination spa under planning is Bodhi Dhama by GOCO, in Dharamshala. The renowned hotel chain Banyan Tree Hotels & Resorts is also planning to further expand its portfolio with two more properties in India with Angsana Club & Spa in Ludhiana and Goa.
Recently, Banyan Tree has opened an all-pool villas retreat in Kerala with a dedicated ayurvedic centre and variety of wellness therapies. Also, Hilton Shillim Estate Retreat & Spa, the first leisure property by Hilton Hotels & Resorts, has started its operations in village Shillim in Pune in January this year. We are witnessing a number of international players investing in the wellness industry in India due to the expanding spa consumer base along with a growing preference for treatments and services that are supported by international brands including skincare and beauty products.
There are various known domestic and international hotel brands offering specialised spa services across India. Some of them are Jiva Spa by Taj Group, Quan Spa by JW Marriott, Heavenly Spa by Westin, Shamana Spa by Grand Hyatt, Sereno Spa by Park Hyatt, Wildflower Hall Spa and Amarvillas Spa by Oberoi, Kaya-Kalp-The Royal Spa by ITC, Maya Spa by Zuri Group, Sohum Spa by Movenpick Hotels & Resorts, etc.
The newly-opened resort, Fairmont in Jaipur is also likely to introduce Willow Stream Spa in India in the near future. Also, Accor group has tied up with Indonesia-based Mandara Spa for its Novotel and Pullman brands in few upcoming locations. Though, Accor already has an In Balance by Novotel Spa operating to target business travellers. Also, YOO Spa by Six Senses Spa in Pune Trump Towers alongside luxurious residential apartments by Panchshil realty is yet to open in 2014. This is another stepping stone by spa operators in targeting luxury domestic demand. Thus, awareness of spa among tourists/ day visitors and brand associations for quality services are showing positive sentiments in the growing spa market.
Various state tourism governments are also making efforts to revamp tourism, announcing facilities such as wellness and recreational club through public private partnership (PPP) mode. Majority of tourists travelling to India for wellness tourism are high-end travellers from North America, the Middle East, and Europe, as well as affluent Asian countries. Key metro cities are also witnessing incremental spa facilities, mainly day spas and resort spas, by branded hotels to target a wider segment and improve revenue contribution by this stream. Spas in hotels are no more just an “add on” feature but a profit centre in its own right.
Spa is gaining significance for the various benefits and are often packaged with beauty and salon services to enhance the experience of the clients.
India is rising towards the concept of spa destinations and with its increasing clientele from various countries across the world, it certainly is stepping ahead towards one of the sought after options for spa destinations.