Exploring the Resort and Spa Industry in the Australian Context

This essay provides a comprehensive analysis of the resort and spa industry in Australia, examining its historical development, economic impact, and the factors influencing its planning and growth. It delves into both internal and external influences, as well as paradigmatic shifts within the industry, and assesses the expectations of modern-day customers. The essay traces the origins of the industry, highlighting its evolution from Roman times to its current prominence in Australia. It discusses the economic benefits, the role of key organizations like SPASA, and the impact of lifestyle changes on the industry's expansion. Furthermore, it explores the various aspects of the spa workflow, including services offered, the impact of globalization, and the evolving customer preferences, including trends towards wellness, group packages, and the demand for result-oriented treatments. The essay also acknowledges the challenges faced by the industry, such as competition, and the importance of ethical practices.

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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

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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.

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Also, places in South Australia provide a favourable location for them due to the presence of
established wine industries there, hence a dual attraction for tourists and travellers have the
possibility of financial benefits for both. Besides the provision of quality services, there are
many resorts and spas in Australia which are located in exotic locations. The SPASA
(Swimming Pool and Spa Association of Australia) is a leading figures of this industry on a
national scale. Its works ranges across provisions of pool building, supply and retail,
technical service and allied trades. It ensures ethical work and business of the industry. The
Australian Academy of Beauty and Spa Therapy had a significant role to play in this regard.
It is a government accredited, privately owned company which has been engaged in the work
of producing highly efficient professionals for the spa industry in Australia. The Crown
Resorts in Australia, one of the most urban and posh members of the industry, is reported of
having a 9.9% hike in its normalised revenue, that is from 3,231.3 million dollars to 3,584.9
million dollars, in the year 2017 (Jia, Munro, & Buckby 2016). Perhaps the biggest boost to
the resort and spa industry was provided by the busy lifestyle and continued stress from
improper work-life balance, all of which has resulted from the rapid technological growth in
the recent past. The recent development of this industry can therefore be partially attributed
to the tendency of professionals to mitigate the stress in their personal lives and a search for
alternative therapeutic treatments for physical and mental well-being. The Shangri-La in
Sydney, New South Wales, is of Chinese origin and offers a provision of deep relaxation
which involves spiritual reawakening, which attracts a fairly large number of crowd.
However, since this industry runs mostly on private ownership, there is a risk of their being
severely affected by inflation or changes in tax laws. Other significant challenges to this
industry include the emotionally challenging job of reluctantly putting up a feigned intimacy
with the clients by the therapists on certain occasions. There is also the risk of negotiating the
sexual boundaries as one has to deal with the naked human body. In spite of these risks and

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drawbacks prominent names like ‘The Byron Resort and Spa’, ‘Sapphire Spas’,
‘Leisurescape Spas’ (it won two Awards of Excellence in 2017), ‘Lizard Island Resort’,
‘Maax Spa’, along with those mentioned above and many more continue to draw a significant
profit for the Resort and Spa industry in Australia.
In the modern wellness industry, there are various aspects which comprise the
workflow of the resort and spa sector. The recent developments of the spa industry in the last
fifty-years saw a development in the variety of facilities provided, which includes various
kinds of messages, facials, salon services, body treatments, water-based treatments, yoga
retreats, health assessments, spiritual services and many others, along with the sale of
products that are specific to these treatments. The recent trends of ‘baby spas’, especially
meant for toddlers, is a significant addition to this industry. While some of the resorts offer
highly decorated and technologically advanced facilities like hydrotherapy and artificially
made steam baths, some others make use of natural water from hot springs to entertain their
visitors. This is often followed up by the sale of ancillary products made from natural local
ingredients. Besides simple baths, the spa industry has come up with an array of healing
sessions, yoga sessions, nature walks, meditations, and naturopathic consultations. The food
offered is usually organic cuisine, sometimes with good quality of wine on the menu. Wine
and local flora products are also used for healing purposes, especially in the alpine areas of
the country. Two-third of the industry’s revenue goes to those resorts which offer services
related to spa, besides providing bathing and other additional recreation facilities.
Globalization seems to have a positive impact on this industry. This is clearly reflected in the
various oriental and ethnic therapeutic techniques, which are not always Australian, like the
Indian Ayurvedic methods or Chinese medicine and ‘tai chi’, are implemented by different
spa centres across the country. The industry has seen a significant rise in number of male
clients in the last few decades. This indicates a break in the gender stereotypes and growing

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interest of men in beauty and wellness treatments. Unlike women, these men are often seen
accompanied by their spouse. Male customers are seen spending more on resorts and spas as
compared to their female counterparts, the probable reason being a higher ratio of older males
possessing more disposable income taking recourse to these facilities. While some resorts
allow a free play of gluttony and debauchery to their customers, some other lay down rules
and discipline and insist the customers to follow the same for their own benefits (Han, et al.,
2017). The multicultural trends in Australia offer a favourable market for both. Spiritual
retreats like ‘Vipasana’, located in Blackheath, New South Wales attract more people every
day who are in search of relief from their daily stress of both professional as well as personal
lives (Eddy, 2014). It offers an alternative way of holistic wellness service.
A growing population of wellness-minded people are looking to integrate healthy
habits in their daily lifestyle to get rid of negativities like insomnia, excess of work-related
stress, unhealthy food habits and the like. The root of the development of the current spa
industry lies in the people’s preference of hot springs or thermal springs with high mineral
content, for the purpose of bathing, physical and mental healing, socializing and for spiritual
development (Cohen, et al., 2017). This tradition continues till today as consumers, or resort
and spa goers constantly seek natural or authentic experience based on the place of their visit,
and being close to Mother Nature, which has proved to be therapeutic since ages (Kelly, &
Smith, 2016). As a result, majority of the services are developed around thermal or mineral
springs, and has a higher share of the market in under them. The socializing aspect of spas
has gained prominence over a period of time. Taking time out of their busy schedule, a lot of
people visit spas with their friends and enjoys the treatment facilities as a means of
socializing. Modern day consumers are looking for packages which offer wellness-related
services to groups, as they prefer socializing while taking the treatments (Cloutier, 2015). The
current as well as potential consumers of the resort and spa industry look for discounts in

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both group as well as individual packages offered. An ever-growing health-conscious
population would prefer healthy cuisine in resorts and spas. There is a growing popularity for
achievement of balance between mind and body through healthy eating habits. As a results
healthy gourmets, snacks and juices are becoming increasingly popular among the spa-goers.
Statistics show that the customers of the Asia-Pacific region, including Australia, has more
demand for a better skin-care technologies over body treatments, which is preferred by
Europeans. The Australian customers are more interested in result-oriented treatments rather
than getting pampered (Moghimi, 2016). The growing demand for beauty treatments among
both among male and female customers hints at their growing curiosity about the effects of
these treatments. The results of these customised treatments must be clearly visible even after
the treatments. Thai Message, Foot Message, Stone Message, Aromatherapy constitute the
facilities most commonly offered by spas and availed by the customers. Modern innovative
treatments include therapeutic treatments especially meant for tackling office related stress.
21st century has seen the evolution of medical spas where the medical and spa industry come
together (Medhekar, 2017). They are quite different from others and require specially trained
therapists. Major demands of the consumers include pleasant behaviour from the therapist,
quick response to individual needs of the customers by service providers, and most
importantly, the ability of the therapists to explain the procedure and benefits of the
treatments.
In conclusion, it may said that the resort and spa industry has gone through a variety
of changes since its inception, and is still evolving. Australia, although a late entrant in this
particular sector, has achieved significant development in the last few decades and has a
prominent market presence in this field. The Asia Pacific region ranks high in terms of the
number of resorts and spas, and Australia ranks 6th among these countries taking into
consideration the employment in this industry and its annual turnover. New developments in

7RESORT AND SPA INDUSTRY IN AUSTRALIA
this sector has been fuelled by the growth of tourism both on the national as well as
international scale. Spa-treatments are increasingly relied upon by customers as a panacea for
their tough and hectic schedule. Significant economic growth in the country also drives
customers to spend a lot on well-being. With new investments, resorts adjacent to hot springs
have undergone significant improvement in terms of economic growth. The rising income of
the middle class citizens of Australia has been hugely responsible for the growing economy
of this sector. Several training centres therapists and management courses related to this field
has improved the quality of services offered for the last few years. In spite certain potential
challenges, the resort and spa industry in Australia is going through an upward curve in terms
of productivity and profitability, and shows signs of marked improvements in the near future.

8RESORT AND SPA INDUSTRY IN AUSTRALIA
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