ITB EXPERTS FORUM WELLNESS THE GLOBAL WELLNESS TOURISM ECONOMY 2013

Susie Ellis Chairman & CEO Global Spa & Wellness Summit

Why You Should Care about Wellness Tourism?

1.   Huge Marketing Support

2.   More Business and Revenue for Spas

3. More Jobs & Careers 4. Will Lower Health Care Costs 5. It is the Future!

What We Will Cover

•  Spa: A Walk down Memory Lane

•  Evolution of Wellness and Wellness Tourism

•  First Wellness Tourism Economy Research Report

•  How to Support the Growth of Wellness Tourism

1949: Rancho La Puerta Called a Cult

1959: Golden Door Fat Farm

1960’s: Jack LaLanne Fitness Guru

1965: La Costa Resort and Spa Opens

Early 1970’s: Golden Door Fat Farm

Late 1970’s: Golden Door

1980’s: Jane Fonda Workout Tapes

1980’s: Spas at Sea

1985: Brenner’s Park Hotel added the word Spa

2002: Botox Approved - Cosmetic Use

After 2002: Explosion of Medical Spas

Medical Tourism on ‘60 Minutes’

The Wellness Revolution 2007 2002

2010: The Term Wellness

Conventional, Medically-Oriented

Approaches

To solve problems

Integrated, Wellness-Oriented

Approaches

To improve quality of life

Patients

Reactive Proactive Illness – Prevention

Guests

The Wellness Paradigm

Medical Wellness

SRI International’s 2010 Report, Spas & the Global Wellness Market: Synergies & Opportunities

Medical Wellness Cure Prevention

Patients Guests

Reactive Proactive

Advanced Degrees Certifications

Objective Intangible

Expertise Experience

Rules and Regulations Guidelines

Liability Less Liability

Authoritarian Collaborative

Facilitators Travel Agents

Fitness & Mind-Body

Spa

Healthy Eating/Nutrition & Weight Loss

Preventive/Personalized Health

Complementary & Alternative Medicine

Beauty & Anti-Aging

Treatment Paradigm

Wellness Paradigm

Reactive Proactive

The Wellness Cluster

Workplace Wellness

Medical Tourism Wellness Tourism

$276

$390

$679

$113

$243

$50 $106

$60

$30

(US$ billions)

SRI International’s 2010 Report, Spas & the Global Wellness Market: Synergies & Opportunities

Conventional, Medically-Oriented Approaches (to solve problems)

Integrated, Wellness-Oriented

Approaches (to improve the quality

of life)

A $1.9 trillion global market

© 2011, SpaFinder, Inc.

Organizational Structures

Spa or Wellness Tourism

Medical Tourism

© 2011, SpaFinder, Inc.

Current Trend

Ministry of Health

Ministry of Tourism

Medical Tourism Wellness Tourism

Spa Mineral Springs

Fitness

Medical spas

Beauty

© 2011, SpaFinder, Inc.

Executive Summary available at www.gsws.org

1ST RESEARCH TO SIZE & ANALYZE THIS EXPLOSIVE TRAVEL CATEGORY

Why Study Wellness Tourism?

Global Tourism Industry

$3.2 trillion

Global Wellness Industry

$2.0 trillion

Global Wellness Tourism?

What Wellness Travelers Seek

Definition of Wellness Tourism:

The Wellness Tourism Economy

$439b global market

12m direct jobs

$1.3t in economic impact

14% of all tourism spending

Wellness Tourism: Near Half-Trillion Dollar Market

Domestic 83% 17% International Secondary 87% 13% Primary

Purpose Wellness Tourism Dominates

An Extremely High-Yield Tourist

65% More

130% More

Wellness Tourism by Region

Growth Will Shift from West to Developing World

Synergy with Other High-Growth Niche Segments

Experts Identify 5 Best Ways Forward

•  Focus on a unique, indigenous offering

•  Don’t confuse wellness and medical tourism

•  Don’t forget the domestic wellness tourist

•  Package wellness tourism and emphasize the “feel good” factor

•  “Eco” message is key to wellness tourists

The European Wellness Tourism Market

•  #1 Global Region for Wellness Tourism Trips: 203 million  

•  #2 Global Region for Expenditures: $158.4 billion USD 

•  A VERY sophisticated wellness and prevention-focused traveler

Europe: 6 of the Top 10 – and 11 of Top 20 – Nations Globally for Wellness Tourism Expenditures*

1. United States $167.1

2. Germany $42.2

3. Japan $28.6

4. France $24.1

5. Austria $14.0

6. Canada $13.8

7. UK $12.3

8. Italy $11.7

9. Switzerland $11.4

10. Mexico $8.9

11. China $7.8

12. Spain $7.6

13. South Korea $5.6

14. Thailand $5.6

15. Australia $5.0

16. India $4.7

17. Russia $3.8

18. Portugal $3.4

19. Greece $3.3

20. Turkey $3.2

($ Billions)

* domestic and international combined

DOMESTIC Wellness Tourism Crucial for Region

•  77% of Trips

•  13 of top 20 nations for domestic expenditures worldwide are in Europe!

1. Germany 19.4

2. United States 8.0

3. United Kingdom 6.0

4. Canada 5.9

5. France 5.3

6. Austria 4.1

7. Switzerland 4.1

8. Russia 3.9

9. Italy 1.8

10. Hong Kong 1.7

11. Netherlands 1.6

12. Japan 1.5

13. Sweden 1.2

14. Spain 1.1

15. S. Korea 1.0

16. Belgium 1.0

17. Singapore 0.9

18. China 0.8

19. Turkey 0.8

20. Denmark 0.8

(Millions)

Growth Leaders – Thru 2017

Annual Growth Trips/Arrivals Added Global Rank – Trips Added*

Russia 13.1% 8.5 mil. #6

Turkey 12.6% 5.4 mil. #13

Poland 12.4% 4.1 mil. #16

Switzerland 8.9% 5.4 mil. #12

Hungary 8.9% 2.4 mil. #20

Czech Republic 8.9% 2.1 mil. #21

Austria 6.9% 4.5 mil. #14

Spain 6.2% 3.5 mil. #18

France 5.5% 8.3 mil. #7

Germany 4.7% 12.7 mil. #5

*Among Top 34 nations globally

Russia #1 percentage gainer – Germany #1 trip gainer

Other Key European Wellness Tourism Facts

•  Projected annual spend growth for region thru 2017: 7.3%  

•  Responsible for 2.4 million DIRECT jobs across Europe 

•  Total regional economic impact: $451.7 billion USD

•  Numerous nations’ tourism ministries actively promoting wellness travel

–  Notably, Austria, Germany, Finland, Hungary, Lithuania, Switzerland, Slovenia

www.gsws.org

Executive Summary available at:

Susie Ellis susie@gsws.org

Thank You!