Map of Spas in Europe > What is the future of “wellness tourism”?

The turn of the century has produced concern about the future of the spa industry in its classic form as a component of a comprehensive health system; on the other hand, there is talk of a renaissance in which the spa industry becomes a fixed component of the hotel trade. Spa hotels, which up till now shared highly similar operational and business conditions, are worried about heretofore lucrative long-term stays, the loss of interest from the health care sphere, the loss of the possibility to generalize the results of spa treatment, as well as the loss of motivation by qualified health care providers. This trend concerns all traditional spa industry leaders. On the other hand, the spa industry is becoming a component of hotel services on a global scale. Wellness or spa operations are not missing from any newly opened “full-service/upscale” hotel, hotel lines are adding spa facilities, and “spa brands” are being franchised. On one hand traditional spa hotels fear sophisticated competition, while on the other they could capitalize on the fact that consumers already consider spa services to be standard offerings and that these consumers have become accustomed to them and are familiar with individual procedures. The traditional facilities are attempting to set themselves apart from the competition and maintain a hallmark of exclusivity in various manners such as employing the appellation of “medical wellness,” certificates, and so on.

Nevertheless, they need to be careful. Following this unprecedented boom the market appears to be saturated and the tide of services and new ideas is slowing; many trends in tourism are going in a single or opposite direction.

The first warnings are appearing in the press in Germany, a country that experienced a highly effective wellness campaign. In comparison with previous research the so-called Wellness Sensor indicated significantly critical tones among respondents. "Curiosity” about wellness is on the rise. Many services and products are used very seldom. Nevertheless, the number of providers, especially in Eastern Europe, continues to grow. Low-cost providers force further price reductions. However, the largest wellness market - Germany – is sceptical about future development on traditional markets.

The Austrian market appears to be full. According to estimates from the Institut für Freizeitwirtschaft (The Leisure Time Institute) there has been a reduction in the demand for wellness products by German visitors. At the same time Austria has the highest number of per capita providers. In 2004 and 2005 a total of 80 new “wellness” hotels were opened in Austria; the number of these facilities in the country is now around 750. The trend reached its zenith during this boom and now the first worry lines are appearing on the faces of hotel owners.

While many experts cannot resist the impression that Italy (with the exception of several regions and exceptional projects) has missed this wellness trend, according to institute research South Tyrol providers have gained an impressive ten percent share of the market.

Poland has built up a large wellness structure over the last two to three years. Many wellness centres and facilities for health holidays have been created with the use of EU development funds. The Poles were able to convince many tourists (and not just domestic) with the philosophy of “a lot of music for a little money." Germans, who make up more than 60% of visitors in many hotels, also take advantage of the offer from these budget providers for free transfers from the airport to the hotel. Even traditional spas, the majority of which are in private hands these days, have performed significant modernizations. It is estimated that there will be annual growth of 45 - 50 providers over the next few years.

Several smaller countries appear on the list of winners. Slovakia is highly praised for professional marketing and favourable prices. Thanks to this the country recorded an increase in demand from Germany of 12% in 2005, compared to only 8% in the Czech Republic for the same period. The Slovenian government acknowledged the economic significance of wellness tourism and provided substantial support to the development of infrastructure related to the industry. Budapest took advantage of its position and profited from the attractiveness of “Wellness in the City," especially with the advantages of having a nearby major airport. Avian flu fears resulted in a drop in the solid nine percent German share in the Cyprus wellness market. The situation was similar in Turkey, were in addition to the avian flu visitors were also put off by an intense construction boom.

Switzerland, one of the countries with the highest prices, recorded a surprisingly positive trend. The country experienced 3% growth over 2002 and an 11% share of German guests, even despite the fact that their extensive wellness catalogue resembles a train timetable. This is a signal that services and their quality are the most important factor. Switzerland has added a new “Luxury Catalogue” to their spa treatment offer.

Even the Irish and British are getting on board the search for future clients. One of the premier facilities is the Spa at Pennyhill Park; with an area of over 9,000 it is probably the largest spa hotel in Europe. Spas in Ireland and Great Britain are typically five-star resorts. In addition to a high level of luxury they are accompanied by extraordinary professionalism and proven treatment concepts. The rapid development of the market forced the British Spa Association to strengthen its quality criteria. Corresponding criteria are always processed in a pilot project in cooperation with ten facilities from four various segments.

Under the “power in numbers” motto (which we also know) the Public Private Partnership Gran Canaria Spa & Wellness project was launched; this initiative includes 14 facilities and is financed in part by the EU. A similar association of 16 wellness hotels was also created under the common name of “body.mind.madeira” on the blossoming island of Madeira. Experts from the German organization Deutscher Wellness Verand were invited to serve as advisors. This organization promotes unified quality standards for wellness products. The group has already helped create standards in neighbouring Poland, Russia, and Slovenia. These German experts are convinced that quality standards will help the current atmosphere of growing competition in the field and in the offer of cheap stays in faraway destinations, not only for customers, but also hotel owners in becoming oriented in the wide selection of wellness products.

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