Spa industry goes into "refining stage"

CEBU, Philippines – The Cebu Spa and wellness industry is now experiencing a “refining stage” after a series of closures of spa outlets hounded the industry for the last two years.

Spa and Wellness Association of Cebu (SWAC) president Johnie Lim revealed that around 20 members of the organization folded up their spa businesses and diversified to other ventures.

Lim said that the industry is anticipating a “zero” growth this year in Cebu, as the market is already saturated, and consumers’ interest have slowed down.

However, as the industry enters the “survival of the fittest” stage, Lim said serious players have reported good revenue performance, although not as robust as before.

The Spa and wellness industry boom in Cebu started in 2006, wherein one or two new spa outlets open every week. However, for the last three years, some spa joints started to crash and most shops have closed down due to less profitability as some resorted to dropping their rates just to survive the competition.

Originally, SWAC had over 50 members, now it went down to 35, including supplier-members like sauna manufacturer Sawo, massage oil distributors, and others.

While Cebu is pushed as the “Wellness or Spa Destination” in the Philippines, Lim said it is important that the industry will also go through the “refining stage” in order to provide only the “cream of the crop” players, and this will bring the industry into maturity.

Through the Cebu Health and Wellness Council (CHWC), Lim said the surviving industry players will be re-oriented on its vision to make Cebu as the ultimate “Spa Destination” in the country.

“We should be one in our aim to put Cebu in the realm,” Lim said adding that some just entered the industry because of business gains, especially when the industry was in “booming stage.” Now, that it experienced a slowdown, this is the time that Cebu will see who are the serious players in the Spa and wellness sector.

Lim, who also owns the largest Spa chain in the country, Body & Sole said that his business even experience a slowdown, although business is still sustained.

“Serious players are even investing now, while the market is weak,” he said expressing confidence that this industry hiccup is just temporary and will only run for short term.

He said surviving players in the Spa and Wellness industry is Cebu are called to re-visit their vision through led by CHWC, not only to push higher profit gains, but also to sustain and pursue Cebu’s goal becoming a Spa Destination.

Currently, SWAC is working closely with CHWC along with other organizations in the health and wellness sector, to provide a sound package for the Medical Tourism market.

Together, making CHWC as facilitator, sectors that will be involved in the Medical Tourism package, like hospitals, travel operators, Spa owners, resorts and hotels will improve the existing package, in order to attract the Medical Tourism market in the world.

Spa operators, through SWAC vowed to promote the Filipino massage called “Hilot” as the banner service especially for medical tourists. This means, that every Spa outlet should provide its own “Hilot” service, instead of foreign-inspired massage like for instance Thai or Swedish.