Geothermal Conference - Update on Spa Projects February 2014 Francis Pauwels

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1 Geothermal Conference - Update on Spa Projects February 2014 Francis Pauwels

2 Spas and Hot Springs Major Trends Opportunities Global Hot Springs Research 8 Examples of successful models Iwi Opportunities Reposition Rotorua's Brand Next Steps

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4 Spa & Wellness: Globally wellness is a US$1.9 trillion industry Spas $60bn, Hot Springs $50bn Global Hot Springs Best Practice Research Project Japan, China, NZ, Australia, US, Canada, India, Europe, Middle East

5 Demographics: >65 growth dominates change from here on Source: Stats NZ

6 Older people cost a lot of money annual healthcare expenditure by age Source: NZ Treasury

7 Health blowing out before the >65 s impact hits Source: NZ Treasury

8 Who s paying?

9 World Economic Forum 2014: An Unprecedented Focus on Wellness When 2,500 CEOs, heads of state, academics and Nobel laureates recently gathered in Davos, Switzerland, preventative health approaches, stressreduction, mental health and the power of meditation were - for the first time - a significant part of the agenda. A powerful affirmation that the wellness industry is no longer perceived as soft or on the sidelines, but as critical to solving the world s most difficult issues and a key to global economic growth

10 Rotorua Spa s by type and market Luxury Tree Tops Opportunity luxury resort / rehab centre Waiora / Mokoia Polynesian Pools Cultural / experience Tikitere / Hells Gate Basic Opportunity for current QE QE Opportunity for a theme based family spa? Waikiite Rehabilitation Health maintenance Social interaction Family Fun

11 Hot Springs that are hot business: The hot pools Cross cultural bathing adventure Absorbing nature Wellness workshops Recreational activities Food and beverage Entertainment Health and rehabilitation

12 The Hot Pools Cross cultural Multi-generational Multi-sectarian Egalitarian No pre-requisites Destination Primary activity Day time / night time spread

13 Hanmer Springs 500,000 / annum) $10 - $20m Capex Rock pools, Rainbow pools Sulphur pools (damn hot!) Hexagonal pools Aqua therapy (adults only) Super bowl and water slide Aqua Play and picnic area (BYO) Private thermal pools, Private sauna and steam rooms Freshwater pool and lazy river Café, photos, shop Massage and spa therapy Some geothermal heating with large coal boiler

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15 Ngai Tahu Tourism Queenstown $25m capex 300,000 pax 12 hot pools Leverage summer / winter clientele No geothermal?

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17 Cross Cultural Bathing experience ($15 - $25m) Multiple pools Multiple experiences Multiple cultural experiences Maori element Accommodation models Nearby Within complex Specialist options (medi, family, group)

18 Peninsula Hot Springs Australia $25m revenue 350,000 pax 40 pools One third through capital program (wetlands, 125 rooms) Charles Davidson

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20 Nature ($5 - $10m) Clever landscape design (master Japanese rock placers) Architecture paramount (local vernacular) Location grandeur / vistas Journey in and around setting Just pools / walkways Eco focus Primary and secondary destination

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23 Wellness workshops 2-3 day courses up to 1 week Mainstream / edgy Social, meditative, lap, exercise pools Camp, glam tents, cabins, luxury Spirituality away from religion Ayurveda, organic Aro Ha Glenorchy $6250 / week Booked out for 3 courses and not yet open

24 Recreational activities (e.g. Noosa Springs) Biking Golf Walking Fishing Chalets, units, studios (4 5 star) Bathing, spa 10-15%

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26 Food and Beverage ($3 - $7m) Geothermal cooking and brewing Specialist local ingredients Restaurant / destination Bathing option Feature experiences (e.g. foot soak in mineral water) Nature location Local, Domestic, FIT target markets

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28 Entertainment Hoshino Resort (USD160m / annum) 1.2m pax Shopping Amusements Food court type eating Entertainment / buskers Lake with experiences around Onsen / spa

29 Health and Rehabilitation ($5 - $10m) 2014 World Economic Forum (25 papers) Treasury / MOH (Private capital, service provider) Australia health insurer discounts scheme Healthy / proactive Rehab, minor aches & pains Men (and women) in white coats Professional resilience (e.g. Middlemore, dentists)

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31 Iwi opportunities: Land and geothermal resources Investors Employment and training

32 Next steps 2014: Global research completed by April (Japan, China, NZ, Australia, US, Canada, India, Europe, Middle East) Continue discussions with interested landowners Rotorua opportunities developed Investment Memorandum Investor database Work with local, NZ, overseas investors to attract investment capital into projects

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36 Thank You

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