Resort and Spa Industry in Australia: History, Development, and Current Scenario

Running head: RESORT AND SPA INDUSTRY IN AUSTRALIA
RESORT AND SPA INDUSTRY IN AUSTRALIA
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1RESORT AND SPA INDUSTRY IN AUSTRALIA
The rapid growth of the Resort and Spa Industry across the globe has increased the
demand for highly skilled business and management personnel who excels in educating as
well as empowering their clients and staff alike. As the manager of a resort or spa, one holds
the responsibility of managing the overall operations and providing quality customer
experience. The manager is also expected to achieve financial targets and deal with the
feedback from the customer. This essay aims to explore the workflow of this wellness service
industry in Australia. In the beginning, it attempts to examine the history and development of
resort and spa industry in Australia and what impact it had on the Australian economy since
then. Then some of the internal and external factors which affect the planning process of this
industry have been discussed, followed by an evaluation of the major paradigmatic shifts in
the industry and its current scenario. This will be followed by an assessment of the
expectations of modern day customers from this industry.
The beginning of resorts and spas dates back to the Roman Empire of 2nd century BCE
when there was a proliferation of public baths in Rome. The first significant resort was made
in Belgium in the year 1326 at a place named Spa, by an ironmaster named Colin le Loup
(Podpěra, 2014). The word ‘spa’ originally meant fountain. However, in modern parlance it
has come to represent a holistic concept of physical and mental recreation or well-being. This
trend came to Australia in the 19th century through the hands of European immigrants and
carved a niche in the springs of Hepburn and Daylesford in Victoria (Goulding, R., Horan, &
Tozzi, 2014). However, it was not before the latter half of the 20th century that this industry
gained prominence in Australia. Today, some of the world’s best resorts and spas are located
in Australia like the ‘Park Hyatt, Sydney’ which offers a wonderful view of the Sydney
Opera House, or the ‘Hayman One & Only’ which has in its repository a spa facility in the
middle of the Great Barrier Reef. The wellness industry in Australia is therefore experiencing
a rapid growth in terms of economy as well. The rising popularity of this industry both

2RESORT AND SPA INDUSTRY IN AUSTRALIA
among foreign tourists as well as the residents of Australia has significantly boosted its
economy (van den Eynde, 2017). The rising demand for services offered by this industry can
be attributed to growing concern of the people about their appearance and health issues. A
realization of the medical costs resulting from unhealthy modern lifestyle has pushed the
modern man more towards the relaxation and rejuvenation offered by the wellness industry.
The impact of the services offered by the resort and spa industry extends beyond the borders
of the resorts and spa centres and has a direct impact on people’s home as well as work
environment. With an ever widening client base, which includes single men, single women,
couples, families and corporate users as well, the revenue outcome of this industry is
expected to rise at a rate of around 3% per year for over the next five years, reaching up to an
annual turnover of approximately $440 million (van den Eynde, 2017). In spite of the
growing productivity of the industry as a whole, the profitability of each of the resorts and
spas has slightly gone down due to a constantly rising competition. However, such challenges
could neither keep new entrants in this sector at bay, nor could it prevent existing units from
make a good profit.
As a result of the huge competition for a better market share, there are several factors
that professionals take into consideration for the planning and development of a resort or spa.
An ever-growing population of middle-class citizens results in a constant expansion of the
consumer base for the resort and spa sector of the wellness industry. The rise in income of
these citizens beyond the level of their basic needs results in the expenditure of this extra
fund for travel and well-being, making way for the economic growth of resorts and spas (Lai,
& Hitchcock, 2016). The business of the resort and spa industry is directly dependent on the
size and distribution of population in the country. They are therefore more abundantly found
in places like New South Wales, Queensland and Victoria. Besides the larger cities, smaller
regional locations also provide adequate means for the establishment of resorts and spas.