Spa and wellness sector experienced a flat 2012

CEBU, Philippines - Despite its big potential for growth, the wellness and spa sector in Cebu was tested by a unique battle in competence and internal concerns that almost brought the industry players into total surrender.

Thus, the industry described the year 2012 as a “flat year” (in terms of growth) and a phase that measured the seriousness of the players, while the sector faced several exhausting concerns, in competition, government policies, among others.

External pressures, such as the conflict between the Philippines and China contributed to the slack of customer traffic from the tourists’ market in the wellness and spa business in Cebu. Significantly, the overwhelming competition has affected the industry’s bid to provide only “quality” service and ultimately make Cebu as a preferred wellness and spa destination in Asia.

“Decline of customer traffic was substantial. Competition was tougher, and quality of service was threatened. We could only wish that the government should implement a clear regulation in our industry,” said Spa and Wellness Association in Cebu (SWAC) president Johny Siao.

Siao, who is one of the pioneering players in the Spa and wellness industry in Cebu, whose company operates the chain of “The Spa at Cebu,” said that because of these difficulties encountered by the major and serious players, the year 2012 turned out to be a memorable one, as it has awakened the sectors’ interest to fight and take on the challenge.

According to Siao, the entry of more players in the market has diluted the industry’s ability to make Cebu as a major spa and wellness destination in Asia, while some are making wellness service cheaper—compromising the quality of service given to customers.

Because of this, SWAC decided to re-activate and gather the few serious players in the industry to save its potential, and started to make advocacy, and called the government’s hand for help.

The local government unit (LGU) in Cebu was called to re-visit the ordinance which required spa operators to pay for the amelioration tax, of which players are required to pay as much as P100 thousand a year, because the Spa industry is included in the “entertainment’ category, not in the health and wellness sector.

Significantly, SWAC also encouraged other players in the wellness sector to join the organization to make its voice stronger, and hit the goal of making Cebu a world class wellness destination.

In the middle of this year, the Dutch government sent an expert to help the sector in taking advantage its potential, through the developmental support program of Netherlands called PUM.

As an outside observer, PUM senior expert on beauty and wellness, Janny Beeuwkes-Berends said that Cebu has a lot of things to change if it were to attract Spa and wellness tourists specifically from Europe and other countries.

Berends observed that  Cebu has “a bad name”  in Europe, because of the easy availability of women that targets “foreigner” visitors.

Although, “prostitution” is not isolated in Cebu, as it is common in every destination, Cebu has to act on putting a good name in its Spa and wellness sector, defining the good spa and wellness service from “un-wholesome” service.

Because of the diluted industry make up of the Spa and wellness industry, it has created a “not so good” impression from the foreign market perspective, thereby pulling down its potential for growth and attract wholesome and family visitors that could have been a good tourists’ market for Cebu.

“You miss so many things, only because of the bad impression Cebu has in other countries, like in Europe,” said Berends.

She suggested that Cebu wellness private sector players should work closely with the concerned government agencies like the Department of Tourism (DOT), or the Department of Health (DOH), and even the Local Government Units (LGUs) to change the impression it has created in terms of attracting wellness customers from Europe and other countries.

A good standard in terms of policy and regulations should be implemented, separating “un-wholesome” services that are hiding under the umbrella of Spa and wellness sector.

She mentioned that the existence of “Linggam” massage has clouded the wellness and spa industry in Cebu. Although, this particular service, which claimed to be therapeutic specially for “men” it should not be put under the Spa and wellness umbrella.

Seeing Cebu’s potential to become one of the world’s wellness and spa destination of choice in the world, Berends said “I feel bad that some people in Europe have a bad impression of Cebu.”

She emphasized that Spa is for wellness, and health, it should not be linked to other unwholesome impressions.

As long as standard is there, price is not an issue specifically for European travelers. She said European, Russians, among others are so rich, “we know the price for quality.”

SWAC past president Johnie Lim believes that Cebu can reach its goal as a world class wellness destination, if regulation is in place, and that the industry will be given the utmost attention from both local and national government agencies.

Lim, who owns one of the largest spa chains in the Philippines, the Body & Sole, said that serious players should set aside the competition this time, and establish a “good” brand for the wellness sector in Cebu.

This time, SWAC will not only invite Spa operators to join the organization, but the entire wellness sector in Cebu, including fitness centers, wellness centers and beauty salons, wellness suppliers, professional licensed individuals in the medical and para-medical fields as well as wellness advocacies.

For the Spa service alone, there are approximately over a hundred players in Metro Cebu, of which only 54 are registered as SWAC members.

Despite the slow growing year in 2012, Siao said serious players are up in the hands to strengthen the industry’s potential, and look forward to a promising future ahead, while working hard to fix the pressing concerns, and push for solutions.