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Is wellness tourism the next wave investors should look to ride?

February 26, 2020

February 26, 2020

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Is wellness tourism the next wave investors should look to ride?

The intersection of two booming, multi-billion dollar industries, wellness and tourism has created an even larger industry which is attracting the eyes of investors. This holistically-focused sub-sector of tourism has steadily grown by 6.5% annually since 2015, compared to 3.2% for general tourism. It’s projected to be worth USD$919 billion by 2022. 

The intersection of two booming, multi-billion dollar industries, wellness and tourism has created an even larger industry which is attracting the eyes of investors. This holistically-focused sub-sector of tourism has steadily grown by 6.5% annually since 2015, compared to 3.2% for general tourism. It’s projected to be worth USD$919 billion by 2022. 

The growth can be explained by two factors. The travel industry continues to be incredibly popular. Worldwide, the tourism industry has experienced steady growth almost every year. In 2015, global international tourism revenue reached approximately 1.26 trillion U.S. dollars, having almost doubled since 2005. But with popularity comes people yearning to stray from the ‘one size fits all’ approach that causes such stress for many travellers. In the age of catered experiences and personal celebrity, the market is increasingly favouring holistic travel experiences that serve to rejuvenate the mind and body as tourists from around the globe don’t merely yearn for a tourism experience they can see, and point and shoot their camera at a location. Today’s travellers are searching for an all consuming, sensory, often environmentally conscious experience that they can feel, touch and smell . Today’s  tourists also expect to be able to bring their at-home wellness practices like mindfulness, plant-based diets, and functional fitness routines along with them on holiday. 

Wellness travellers are willing to pay more for this type of holiday. An international wellness traveller spends, on average, 53% more than the typical tourist. On economics alone, the opportunities for investment in wellness tourism for properties  that are able to cater to this emerging market are vast. 

 

Lombok, Indonesia: The ultimate wellness destination

While Bali has positioned itself as a wellness destination over the years, the congestion, pollution, and it’s party scene have taken away from its appeal as a place for a rest and relaxation holiday. 

Meanwhile, nearby Lombok offers the opposite experience. It’s the perfect place for Indonesia to further develop its wellness tourism industry.  Lombok has direct flight connections with countries like Australia and Singapore where most of Indonesia’s incoming tourists come from. That said, it’s off the beaten track enough to mean there is no crowding and the environment remains pristine.

The religious sensitivities of the island also mean the wellness sector is unlikely to be overtaken by the backpacker party scene as has occurred in Bali and there are much more opportunities to develop a holistic travel experience that offers a blend of outdoor activities and wellness.

SIWA: A boutique retreat for wellness travellers 

Despite it being the perfect place to develop wellness tourism, wellness-focused resorts are still relatively scarce on the island. 

Lombok Property Group (LPG) is a company looking to tap into the massive potential of wellness tourism. They’re in the business of property acquisition, development and management in South Lombok, Indonesia and the surrounding bays.

LPG’s SIWA resort project will be one of the first resorts to offer the ultimate wellness experience. It is the right thing, at the right time, in the right place. LPG is focusing on developing options for SIWA that reflect the market shift to wellness tourism including Crossfit-inspired fitness classes, gastronomic experiences, spa treatments, and outdoor experiences. 

In the wellness philosophy, there is equal importance placed on the body, mind, and the connection between the two. Wellness tourism serves to benefit this concept and any wellness resort should include facilities that enable guests to explore and improve their health and wellbeing goals. As a 4 to 5-star luxury boutique resort with a focus on wellness, SIWA will offer : 

 

Fitness facilities: 

  • Air-conditioned functional training spaces: Fitness trends have seen people move away from expensive gym equipment to focus on functional fitness such as Crossfit and F45. 
  • Outdoor callisthenics and Crossfit set-up for those who prefer to exercise in the fresh air.

Mind-body exercises: 

  • A yoga deck where guests can practise yoga, PIlates, and meditation in group classes

Food and beverage: 

  • A wellness-inspired deli that offers organic, seasonal, and well-balanced menu that includes plant-based options. 

Spa experiences: 

  • A spa and sauna 
  • Spa salon treatments such as massage and facials 

These wellness facilities and experiences will not only contribute to the guest satisfaction of those who stay at SIWA, they’ll also generate their own revenue in ways that include:

  • Fitness and wellness centre memberships, classes and personal training 
  • Meal plans and catering 
  • Cooking classes 
  • Spa treatments 
  • Wellness bundles 

 

What’s essential in a wellness retreat? 

These facilities reflect almost everything that research shows a wellness tourist expects to find in a resort. The must-haves are spa and salon experiences, air-conditioned gym space, a place to practise group mindful meditation and/or yoga, as well as healthy eating options. While some may see a lap pool, a cycle, track, and a climbing wall as a nice addition, Lombok offers something even better: opportunities for rock climbing, hiking, swimming, and cycling in the idyllic local environment. 

 

To stay up-to-date with Lombok Property Group company news and announcements, please register your details on their Investor Centre.

Reach Markets have been engaged by LPG to assist with private investor management. Lombok Property Group has recently launched a brand new website detailing development updates and more information for its unique SIWA Cliffs project. You can see more at https://www.siwacliffs.com/

 

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