Asia Pacific Roars! The Latest Spa Research Data And Predictions

Panel Leader: Ingo Schweder, Managing Director, Spatality Inc.

Panelists: Jeff Matthews - Mandara SpaJoy Menzies - Chiva-SomShirin Navab - SpatalitySamir Patel - Taj Hotels & Resorts

ASIA SPA INDUSTRYMALAYSIA AND INDONESIA

Jeff MatthewsPresident and Chief Operating officer

Julie Garrow of Intelligent Spas

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Number of spasIndonesia• Bali 240 -spas• Java 77 -spas• Other locations -87 spas• 52% in hotels -42% day spas

Malaysia• Kuala Lumpur -104 spas• East Malaysia -32 spas• Other locations -49 spas• 40% in hotels -54% day spas

Spa Demographics of GuestsMalaysia

• Russian 2%• Singapore 4%• Hong Kong 6% • Malaysia 6%• Mixed Asian 12%• Australian 16%• Japan 17%• Middle East 18%• Europe 19%

Indonesia

• Middle East 2% • Indonesia 3% • Russian 4%• Hong Kong- 7%• Singapore 8 %• Mixed Asian 15%• Europe 16%• Japan 20%• Australia 23%

RETAIL SALES• Retail sales in Asia is comparatively lower than in the west do to the main

reason of language. With the staff’s weaker skills in English this makes it difficult to instill confidence on getting guests to spend money.

• Resort spas – 7-12% of sales • City spas – 9-18% of sales

Indigenous TRADITIONS Indonesia• Javanese Lulur•Balinese Boreh•Jamu Traditions

Malaysia • Tongkat Ali • Traditional midwife care• Malay, Chinese and

Ayurvedic Treatments

S.W.O.T.Indonesia(S)-Rich Heritage(S)-Good Resources(staff/stuff)(W)-Overseas Recruitment(W)-Diluting the labor pool(O)-Education(O)-Destination Spa(T)-Overseas Recruitment(T)-Saturated Market

Malaysia(S)-Public desire for spas(S)-Rich beauty culture(W)-Government perception(W)-Labor force(O)-Opportunity for growth(O)-Excellent pool of Managers(T)-Public Perception (T)- Work Visa’s

Various statistics Indonesia Malaysia

Single Rm size 200 sf 160sf Double Rm size 600 sf 450 sf

Avg. indoor space 8000 sf 4000 sf Retail space 500 sf 400 sf Avg.spa check $68 $71 Avg. retail Check $44 $34 Capture rates 8-15 % 6-15% # Staff per spa 17 14 Therapist salary $150 $400 Manager Salary $800 $1,200 Profits GOP 55-65% 45-55%