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Opposite (clockwise from top left): Bali was an apt setting; GSS host Susie Ellis; a packed-out general session; and summit co-chairs Jeff Matthews and Anne McCall Wilson This page (clockwise from top left): The board and sponsors; discussions at a networking lunch; debating industry issues in a breakout session; and Dave McCaughan on China


A CHINESE PERSPECTIVE


Because of the location, there was a strong contingent from across Asia (46 per cent) – the fastest growing spa, hotel and tourism market in the world – and Mandarin trans- lations were provided for the fi rst time. China was a popular topic in confer-


ence sessions and conversations. Delegates heard about the importance of learning and embracing the country’s culture, ways of doing business and building trusting relationships. T ey also heard about how success in business depends on under- standing government regulations and legal structures. Dave McCaughan, executive vice-presi-


dent at McCann Worldgroup, Asia-Pacifi c and James Kaplan, senior vice-president at Fairmont Raffl es, both gave insightful talks on China. Kaplan who has worked in south-east Asia for many years spoke about its tourism – China has 56 million visitors annually and is the third in the world for international tourist arrivals. Interestingly, it also has around 56 million outbound travel- lers and numbers are projected to rise to 100 million by 2015. Global players, he says, need to have a presence in China so that when people travel abroad they will choose those brands they recognise. Chinese people con- sider Holiday Inn to be a Chinese brand, for


SPA BUSINESS 3 2011 ©Cybertrek 2011


example, as the chain has been established there for a number of years. He also pre- dicted that there will be at least another 25 years’ growth in China as its infrastructure continues to increase and improve. A panel of Chinese spa delegates also gave


an insider’s view on running spa businesses in China and their top tip was to “focus on quality and you will be successful”. T e ses-


82 per cent of delegates expect their gross revenue


in 2011 will be ‘signifi cantly greater’ or ‘somewhat


greater’ than in 2010. 74 per cent also expect their profi ts to outweigh those in 2010


sion was chaired and translated by Tony Cheung, managing director of PA Well- ness Consultancy.


BUSINESS AND NUMBERS


Another highlight was a focus on franchis- ing as a new business model, put together and chaired by GSS board member Pete Ellis, on day two. Four panellists from three coun- tries gave insights including CG Funk from


Massage Envy, which has 679 day spas in the US. Delegates heard that the company oper- ates on a membership model and topped 1 million members this April. Perhaps even more signifi cantly, 22 per cent of Massage Envy customers had never had a massage before. We explore what this panel had to say further on p22. As ever, new industry research grabbed the


attention of delegates, including performance fi gures for the Asia hotel spa sector presented by Darlena Zhai, consultant at Horwath Asia- Pacifi c. Zhai disclosed that in 2010, urban hotel spas in Bangkok and Shanghai had the highest annual revenue per treatment room (RevPATH), while the highest annual Rev- PATH for resorts spas was recorded in Phuket and Koh Samui. In China, the highest yearly revenue per treatment room of us$46,000 (€32,000, £28,250) came from hotel spas based in Sanya, with the lowest being Bei- jing at us$33,000 (€22,950, £20,250). Yet these fi gures still fell below the leaders in the rest of the Asia-Pacifi c region. New customer trends were the focus of


the talk by Yulia Fransisca, from Eurom- onitor Singapore, who predicted that the youth, or anti-ageing, and wellbeing mar- ket is one to watch. T is sector grew from us$1.3bn (€904m, £798m) in 2006 in the US, to us$2.8bn (€1.9bn, £1.7bn) in 2010.


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