‘THE CHANGE IN ATTITUDE HAS ESCALATED THE GROWTH O

The Indian spa market is on an upward growth trend with spas spread across the country generating around US$ 400 million annually. Thailand-based spa and hospitality management consultant GOCO Hospitality is upbeat about the growth in the spa segment in India, and feels that the rise in annual disposable incomes of individuals coupled with the growing level of health awareness has created opportunities for existing spas and new entrants in this industry. “The spa industry in India stands at around Rs 1,500 crore and is fast growing at around 20-30 per cent annually. Various regions of the country are showing good response to spas. North India is showing the largest potential for development of spas in the country, while Kerala is witnessing a substantial increase in Ayurveda centres,” said Ingo Schweder, CEO, GOCO Hospitality. According to Schweder, the phenomenal rise in spa clientele in India could be viewed from a larger perspective as a natural extension of today’s stressful lifestyle. This booming industry is being nurtured by the various stressful situations that people are facing in this part of the world. “The recent trends show that more and more people now believe in the ‘look good feel good’ theory. Also, the rise in the metrosexual attitude of the urban youth has escalated the growth of the spa industry,” opined Schweder. In Schweder’s opinion, the spa industry for the next three years will show tremendous growth, not only in the number of spas, but also in the diversity of spas and spa therapies available. The spa market in India is still a modest sliver of the overall US$60-billion-plus global spa economy. India is poised to attract significantly more western tourists as well as continue to develop its own vibrant, indigenous spa market at a heady pace. Indian spas will also continue to expand their Ayurvedic menus, for both their passionate overseas clientele who want to experience authentic Ayurvedic therapies, as well as for local enthusiasts who are either already familiar with the benefits, or who wish to adopt their own Indian healing traditions for the first time. “The size of India’s Ayurvedic industry is forecasted to grow at a CAGR of around 22 per cent within the next three years in view of rising demand for Ayurvedic therapy and products,” Schweder said. However, there are still many hurdles that the spa industry faces in the country. According to Schweder, the Indian spa market is considered a niche investment area, while internationally the spa industry is well established and more organised, as spa culture is considered a regular part of social life. “Availability of proper space and skilled manpower are the biggest challenges in India. Supply of quality spa products at affordable rates and the unorganised nature of this industry is also a concern. There are only around 1,000 trained therapists to fulfill the demand of around 3,000 day spas and approximately 1,200 resort spas. Though there are great opportunities, many operators including hotel and resort owners lack the expertise and skills needed to run a successful spa,” he added. Schweder believes that though the government has yet to take dynamic steps in the promotion of the spa industry in the country, there are many energetic, go-getter entrepreneurs who are investing in this sector. He stated, “Though the industry’s history does not exist for more than a decade in the country, the scenario is quite positive. The southern states especially are looking forward to take the lead in ushering the spa phenomenon in India. Many traditional forms of treatment such as Ayurveda are now being blended with the western concept of a spa. The current approach by the government needs to be transformed into a vibrant and supporting model to ensure the ultimate success of the industry in the country.” Commenting on GOCO’s expansion plans in India, Schweder said, “We are currently managing The Claridges Spa Surajkund and also developing a wellness destination resort under one of GOCO’s own brands, the Bhodi Dhama Alibaug, situated within the premises of the luxurious 400-room Annanya Resort & Residences. It is expected to open in 2013. In addition to this, GOCO is developing a destination spa for the Mövenpick Dharamsala Resort & Spa. The Mövenpick Dharamsala is expected to open in the second quarter of 2013.”