THE GLOBAL WELLNESS TOURISM ECONOMY 2013

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1 ITB EXPERTS FORUM WELLNESS THE GLOBAL WELLNESS TOURISM ECONOMY 2013 Susie Ellis Chairman & CEO Global Spa & Wellness Summit

2 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!

3 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

4 1949: Rancho La Puerta Called a Cult

5 1959: Golden Door Fat Farm

6 1960 s: Jack LaLanne Fitness Guru

7 1965: La Costa Resort and Spa Opens

8 Early 1970 s: Golden Door Fat Farm

9 Late 1970 s: Golden Door

10 1980 s: Jane Fonda Workout Tapes

11 1980 s: Spas at Sea

12 1985: Brenner s Park Hotel added the word Spa

13

14 2002: Botox Approved - Cosmetic Use

15 After 2002: Explosion of Medical Spas

16 Medical Tourism on 60 Minutes

17 The Wellness Revolution

18 2010: The Term Wellness

19 The Wellness Paradigm Reactive Medical Patients Illness Prevention Wellness Guests Proactive Conventional, Medically-Oriented Approaches To solve problems Integrated, Wellness-Oriented Approaches To improve quality of life SRI International s 2010 Report, Spas & the Global Wellness Market: Synergies & Opportunities

20 Medical Cure Patients Reactive Advanced Degrees Objective Expertise Rules and Regulations Liability Authoritarian Facilitators Wellness Prevention Guests Proactive Certifications Intangible Experience Guidelines Less Liability Collaborative Travel Agents

21 Conventional, Medically-Oriented Approaches (to solve problems) Reactive The Wellness Cluster A $1.9 trillion global market Wellness Paradigm Treatment Paradigm Spa $60 Proactive Integrated, Wellness-Oriented Approaches (to improve the quality of life) Complementary & Alternative Medicine $113 (US$ billions) Healthy Eating/Nutrition & Weight Loss $276 Preventive/Personalized Health $243 $50 Medical Tourism Wellness Tourism $106 Workplace Wellness $30 Fitness & Mind-Body $390 Beauty & Anti-Aging $679 SRI International s 2010 Report, Spas & the Global Wellness Market: Synergies & Opportunities 2011, SpaFinder, Inc.

22 Organizational Structures Medical Tourism Spa or Wellness Tourism 2011, SpaFinder, Inc.

23 Current Trend Ministry of Health Ministry of Tourism Medical spas Medical Tourism Wellness Tourism Spa Mineral Springs Beauty Fitness 2011, SpaFinder, Inc.

24 1 ST RESEARCH TO SIZE & ANALYZE THIS EXPLOSIVE TRAVEL CATEGORY Executive Summary available at

25 Why Study Wellness Tourism? Global Tourism Industry $3.2 trillion Global Wellness Industry $2.0 trillion Global Wellness Tourism?

26 What Wellness Travelers Seek

27 Definition of Wellness Tourism:

28

29 The Wellness Tourism Economy $439b global market 12m direct jobs $1.3t in economic impact 14% of all tourism spending

30 Wellness Tourism: Near Half-Trillion Dollar Market

31 Domestic 83% 17% International Secondary 87% 13% Primary Purpose Wellness Tourism Dominates

32 An Extremely High-Yield Tourist 65% More 130% More

33 Wellness Tourism by Region

34 Growth Will Shift from West to Developing World

35 Synergy with Other High-Growth Niche Segments

36 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

37 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 preventionfocused traveler

38 ($ Billions) Europe: 6 of the Top 10 and 11 of Top 20 Nations Globally for Wellness Tourism Expenditures* * domestic and international combined 1. United States $ Germany $ Japan $ France $ Austria $ Canada $ UK $ Italy $ Switzerland $ Mexico $ China $ Spain $ South Korea $ Thailand $ Australia $ India $ Russia $ Portugal $ Greece $ Turkey $3.2

39 DOMESTIC Wellness Tourism Crucial for Region 77% of Trips 13 of top 20 nations for domestic expenditures worldwide are in Europe! (Millions) 1. Germany United States United Kingdom Canada France Austria Switzerland Russia Italy Hong Kong Netherlands Japan Sweden Spain S. Korea Belgium Singapore China Turkey Denmark 0.8

40 Growth Leaders Thru 2017 Russia #1 percentage gainer Germany #1 trip gainer Annual Growth Trips/Arrivals 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 Global Rank Trips Added* *Among Top 34 nations globally

41 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

42 Executive Summary available at:

43 Thank You! Susie Ellis

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