Web viewCurrently, the tourism industry is developing in many different ways and follows several tendencies. In this paper, further information about the international trend

Multinational tourism groups

Hot Springs in China

Students : Severien D’Hondt, Sally O’Brien, Ramona Sigg and Cindy Voide

Professor : Kate Varini

Submitted on : 12th November 2014

Severien D’Hondt, Sally O’Brien, Ramona Sigg and Cindy Voide

Sources of visuals on the title pageChina Fact Tours. (2010, November 9). Retrieved November 1, 2014, from China Fact

Tours: http://chinafacttours360.blogspot.ch/

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AbstractCurrently, the tourism industry is developing in many different ways and follows

several tendencies. In this paper, further information about the international trend of hot springs in China will be given. First, the term “hot spring” is defined by a pool of hot water that has seeped through an opening in Earth's surface. Chinese people used and use them to relax and for therapeutic reasons. Therefore hot springs were and are an important part of China. Moreover, this paper focuses on today’s Chinese and global hot spring market and its increase in revenue from 2005 until 2013 onwards. The customer segments are especially middle aged to seniors from a mid to high class level. Finally, a comparison between the spa market in China and Switzerland can be found at the end of the paper and some advice will be given in order to improve Switzerland’s hot spring popularity.

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Table of contentsSources of visuals on the title page....................................................................................iiAbstract............................................................................................................................. iiiIntroduction........................................................................................................................11. History and locations of hot springs in China..................................................................22. Todays market................................................................................................................2

2.1 China.........................................................................................................................22.2 Global........................................................................................................................3

3. Trends............................................................................................................................34. Customer segments........................................................................................................55. Hot springs SWOT analysis.............................................................................................66. Results and analysis.......................................................................................................6Conclusion..........................................................................................................................7References..........................................................................................................................9

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Source:http://usa.chinadaily.com.cn/weekly/2013-01/04/


IntroductionIn this paper we want to introduce you to a new

trend in spa tourism. More specifically we will take you to China that has a lot of hot springs.

There are many different definitions for hot springs. Hot springs are a sort of pools with hot water in it. This hot water is a natural phenomenon which arises when water goes through the earth’s crustal. The water warms up and comes to the surface of the earth. There exist hot springs in volcanic areas, where the water heats up when it is in contact with the magma of the volcano. We can conclude this with the following definition from Science Clarified:

‘A hot spring is a pool of hot water that has seeped through an opening in Earth's surface.’ (Science Clarified, 2014)

Furthermore, this paper will discuss the history of the hot springs and where are they located.

It talks about the new trends in the hot spring industry, its future and it compares the today’s market of China and Switzerland, and it looks at the customer segments. This paper will also give you answers to the following questions. Who goes to hot springs? Where do they come from? How do they attract people and what are the guest’s characteristics?

We conclude this paper with a conclusion about the hot springs in Switzerland. Are there already hot springs, where are they located and how do they differentiate themselves from others? What about the future? And what can Switzerland applicate from China’s hot spring industry.

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1. History and locations of hot springs in ChinaFor centuries, China has been a suitable place for hot springs. Indeed, there are some

written evidences that Chinese people used hot spring to enjoy the mineral benefits of the water. They would go into hot springs to warm up during the cold season, to relax and of course for therapeutic reasons. In addition to cure chronic illnesses and skin problems. Springs were favoured for their ability to suppress pain and soothe tense nerves, increase blood circulation and detoxify the body. (Erfurt-Cooper & Cooper, 2009, p.91)

An interesting aspect is the fact that emperors enjoyed bathing and many had their own favourite spot. For instance, the most powerful man during the Zhou Dynasty used to spend so much of his time at the Huanqing hot springs that he tried to ruin his country. He built a palace next to them. The Tang Dynasty also enjoyed this particular place and benefited from five pools for the imperial family. Moreover, the first Emperor to use the Tangshan hot springs was Kangxi, during the Qing Dynasty. Later emperors added an imperial lodge, pavilions, villas and temples in order to create a heaven of tranquillity and seclusion (Erfurt-Cooper & Cooper, 2009, p.90). Finally, the hot springs of Xiaotangshan have welcomed visits from the most important people such as royals, aristocrats and officials during the Ming and Qing Dynasties since the 13th century.

However, many more springs exist all around China. Tourists can also choose between famous ones such as the Seven-Fairy-Maiden Hot Springs in Baoting County, the Xinglong Hot Springs in Wanning-Hainan, the Baoquantang Hot Spring in the Jinan Province or even the Badaling Great Wall Hot Spring in the Sanlihe District.

2. Todays market

2.1. ChinaAccording to a recent study conducted by Global Wellness Institute, Global Spa, and

Wellness Economy in 2014, China lies on the first rank of the thermal/mineral spring markets in 2013 with a hot spring market revenue of US$14’078.3 millions, although they have less establishments than Japan. (Global Wellness Institute, Global Spa, Wellness Economy, 2014) “Together with Japan, China comprises a staggering 51% of the hot spring industry.” (McGroarty, 2014)

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2.2. Global“It is estimated that there are 26’847 facilities built around thermal/mineral springs

around the world, across 103 countries. These businesses collectively earned more than $50 billion in revenue in 2013.” (Global Wellness Institute, Global Spa, Wellness Economy, 2014)

“Thermal and minerals springs resorts, which offer spa services, earn significant higher revenue” than resorts without spa services. “Their revenue amounts to $32.0 billion which accounts for 64% of the industry’s revenue of the global market” (Global Wellness Institute, Global Spa, Wellness Economy, 2014)

3. TrendsHot spring tourism is not a new invention, but it experiences an enormous resurgence

especially in China. (Global Wellness Institute, Global Spa, Wellness Economy, 2014) According to a recent study conducted by Global Wellness Institute, Global Spa, and

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Wellness Economy in 2014, the investment in hot springs resort has annually grown by 10% from 2010 to 2013. This trend can be explained by the fact that people nowadays pay more attention to their appearance and their health than in earlier days (Erfurt-Cooper & Cooper, 2009, p. 48). Therefore, a trend of going to a hot spring for leisure, health, wellness, or recreation has come up. (Erfurt-Cooper & Cooper, 2009, p. 290)

Thanks to this renewed public interest, new customer segments and clients who were already devotees of this industry, will be attracted again by hot springs. Therefore, the local economy increases and they will continue to invest host spring tourism and develop new products and services (Lee & King, 2007). Hot spring tourism became now one of the ten pillars where the national tourism organization focuses on besides hotels, transport, souvenirs and scenic spots (Spafinder Wellness, Inc., 2014).

Data from the statistics records of Longsheng Tourism bureau shows the evolution of the hot spring resort’s revenues from year 2000 until 2006. (Zhang, 2008)

2000 2001 2002 2003 2004 2005 20060

1000

2000

3000

4000

5000

6000

7000

8000

9000

12901810 2050

2625 2720

7196

8177

Revenue 2000-2006

Revenue (in ten thousand yuan)

From 2010 until 2011 the Chinese hot spring market revenue increased from US$7.51 billions to US$11.52 billion which corresponds to almost 4’591’614 (in ten thousand yuan) in 2011 and 7’043’328 (in ten thousand yuan) in 2012 (exchange rate of the 5 th

November 2014: 1 US-Dollar ≈ 6.114 Yuan). (Davidson, 2013) The following revenue in 2013 of US$14’078.3 millions, which equals 8’611’696 (in ten thousand yuan), clearly shows that the hot spring industry is booming since 2005.

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2011 2012 20130

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

4,591,614

7,043,328

8,611,696

Revenue 2011-2013

Revenue (in ten thousand yuan)

Furthermore, China plans an ongoing investment in hot spring resorts in order to meet the market’s needs. “560 hot springs resorts are currently investing $19.5 billion each year and 200 new resorts are supposed to open in the next several years which will bring an additional 48.9$ billion in investment.” (Global Wellness Institute, Global Spa, Wellness Economy, 2014)

4. Customer segmentsIn a demand driven economy, the key to success is to have a good marketing strategy

which involves numerous steps and one of these important steps is target marketing. The Chinese hot spring market has grown considerable over the number of years and this is due to a strategic target market strategy. To grow a business or company you must find a market which will appreciate most the value of your offer. The Chinese hot spring market has developed its unique selling positions to define the core essence of what the business is all about in order to effectively communicate its advantages to the most profitable market opportunities currently available. China’s main target market is for middle aged to seniors from a mid to high class level. (Samantha Foster, Spa business trends in Asia, Destination Spa Management Ltd, 2014) According to reports, the majority of hot spring users are from Baby Boomer generation (BioAnalogics, 2001) The largest part of the hot spring consumers in China come from China itself, Russia, Japan, Middle East, Hong Kong, Taiwan and Korea. (Samantha Foster, Spa business trends in Asia, Destination Spa Management Ltd, 2014)

The main drivers for the growth of hot springs in China are China’s rapidly growing economic development, its rapidly growing mid-upper and upper classes, globalisation,

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urbanisation, environmental degradation and health concerns such as stress and chronic disease. (Samantha Foster, Spa business trends in Asia, Destination Spa Management Ltd, 2014) Local, national, and global competition is increasing in the health and spa industry. Strategic marketing is the key to any spa’s or hot spring’s success. China’s main marketing strategy is using a unique selling proposition (USP) to entice foreign spa lovers to China. China’s USP is its natural and healthy hot springs that have been around for centuries. Chinas hot springs are unique as they are not man made and contain minerals which are good for the skin. China markets its hot springs in the category of health and well-being due to the hot springs therapeutic nature.

5. Hot springs SWOT analysis

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StrenghtsUnique and is an

inexpensive way to relax.Brings people closer to

nature and is proven to help in the healing of sore

muscles. Growing trend.

Weaknesses

People with heart problems should not use hot springs

Hight maintanance cost

Opportunities

Repackage and develop new

offerings to define the spa market as a wellness

necessity.Help consumers understand and select the spa’s wellness

offerings.

Threats

Competition from european hot spring

market.Natural resource depletion


6. Results and analysisThe Global market includes an estimated number of 26’847 facilities built around hot

springs. China represents 2’160 of them, whereas Switzerland only has 61. This can be explained by the size of the two countries. Nevertheless, the growth in the host spring tourism is a trend in both countries. In order to make use of this growth, China offers its unique selling proposition and promotes it very well by targeting a well-defined customer segment. China focuses on middle aged to seniors from a mid to high class level because the Baby Boomers is the generation that uses hot springs the most often at the moment. Switzerland should do the same to become even more successful. China’s customers come most frequently from China, Russia, Japan, Middle East, Hong Kong, Taiwan and Korea. Therefore, Switzerland, which receives most of its clients from inbound international tourist, has the opportunity to focus on the European market (Global Wellness Institute, SRI International, 2013), without having to compete with the big market of China. Nevertheless, local, national and global competition is increasing in the spa tourism.

ConclusionSo we can conclude that the hot springs have quite a history behind them and also the

future offers a multitude of opportunities for them.

In our view Switzerland seems to be the ideal country for spas by considering its places in green nature and in the mountains. Especially the alpine area, where hot springs are located, can benefit from the skiers who can enjoy the hot springs after skiing. Pure relaxation in a unique location!

Various studies have shown that not only we but also many people in the Swiss tourism industry and beyond find spas and hot springs an important aspect of tourism. We can deduce this on the basis of the various hot springs which exist at unique sites in Switzerland:

The south of Switzerland is well-known for its hot springs and other spa treatments like massages and beauty treatments. We can recommend the following places to families: Leukerbad, Aquaparc and Vitamparc.

Leukerbad is the biggest hot spring resort in the Alps of Switzerland. It is situated 1400 meters above the sea level. They have public baths but also the hotels offer this service. Hereby they possess over around 30 pools. They are very family friendly and their hot springs are equipped with water slides. This activity can easily be combined in winter with the ski facilities and the hiking routes.

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A second place is the Thermalp in Ovronnaz which is situated 1350 meters above the Rhone in Valais. In winter, visitors can combine the hot springs with the sport facilities. In Valais in the Alps there is the hot spring called Les Bains de Saillon. Beside the hot spring, visitors can go to the gyms or go clubbing in the evening.

Les Bains de Lavey have the hottest mineral water in Switzerland.

Furthermore, the Centre Therminal in Yverdon and Vitamparc are both located at the border between Geneva and France. The Yverdon’s Centre Thermal has three hot springs and other spa facilities inside as well as outside. Vitamparc is another water and sport park like Aquaparc which has slides and toboggans but also a tennis court, a climbing wall and a shopping centre. (Lake Geneva Switzerland, 2014)

In conclusion, the concept of hot springs is not really new in Switzerland and it is also very popular by the inhabitants. They are located at unique places like in the mountains and they are easily accessible.

Scientific articles and places where hot springs are situated tell us that hot springs are an important segment in the tourism industry and that it will be even more important in the future. Nevertheless, Switzerland has to try to search for new ways to make it even more attractive for local people and national as well as international tourists, by promoting them even better in other countries.

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References

Davidson, C. (2013). Global Hot Springs Forum. Australia: Global Spa & Wellness summit.

Erfurt-Cooper, P., & Cooper, M. (2009). Health and wellness tourism - Spas and hot springs. UK: Channel View Publications.

Euromonitor (December 2013). Health and Wellness Tourism in Switzerland. Retrieved on 5 November 2014, from http://www.euromonitor.com/health-and-wellness-tourism-in-switzerland/report

Foster, S. (2014) Spa business trends in Asia, Destination Spa Management Ltd

Global spa summit, Spas and the Global Wellness Market: Synergies and Opportunities, (2010).New York,US

Global Wellness Institute, SRI International. (2013). The Global Wellness Tourism Economy. New Delhi: Global Wellness Tourism Congress.

Global Wellness Institute, Global Spa, Wellness Economy. (2014, September). Global Spa & Wellness Economy Monitor. New York, USA.

Lake Geneva Switzerland (2014). Top Hot Water Spring Resorts and Spas in the Lake Geneva Region. Retrieved on 5 November 2014, from http://www.lake-geneva-switzerland.com/outdoors-fun-activities-on-lake-geneva/top-hot-water-spring-resorts-and-spas-in-the-lake-geneva-region/

Lee, C.-F., & King, B. (2007). Assessing Destination Competitiveness. An Application to the Hot Springs Tourism Sector. Melbourne: Victoria University.

McGroarty, B. (2014, September 18). Global Spa and Wellness summit. Retrieved November 4, 2014, from http://www.globalspaandwellnesssummit.org/index.php/press-releases/press-release-global-spa-industry-now-valued-at-94-billion-thermal-mineral-springs-market-at-50-billion-wellness-tourism-rises-to-494-billion

Science Clarified (2014). Geyser and hot spring. Retrieved on 5 November 2014, from http://www.scienceclarified.com/landforms/Faults-to-Mountains/Geyser-and-Hot-Spring.html

Spafinder Wellness, Inc. (2014). 2014 Trends Repor- Top 10 Global Spa and Wellness Trends Forecast. Retrieved from http://www.globalspaandwellnesssummit.org/images/stories/pdf/2014-trends-report.pdf.pagespeed.ce.IAosO_yL7m.pdf

Switzerland Tourism (2014). Largest thermal baths and wellness resort – Leukerbad. Retrieved on 5 November 2014, from http://www.myswitzerland.com/en-ch/largest-thermal-baths-and-wellness-resort-leukerbad.html

Zhang, J. (2008). The Market Orientation and 4P Strategies of Ailing River. Guilin, China: CCSE.

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Documents

Web viewCurrently, the tourism industry is developing in many different ways and follows several tendencies. In this paper, further information about the international trend