ITALIAN SPA INDUSTRY:ITALIAN SPA INDUSTRY:

• The spa industry represents one of the main growth engines of The spa industry represents one of the main growth engines of the Italian economy.the Italian economy.

• Italy boasts an extraordinary number of baths: 378 - located in Italy boasts an extraordinary number of baths: 378 - located in 169 thermal municipalities, in every region of the country and 169 thermal municipalities, in every region of the country and equally distributed in the North (46.7%), in the centre (14.8%) equally distributed in the North (46.7%), in the centre (14.8%) and in the South (38.5%).and in the South (38.5%).

• Campania (29.9%) and Veneto (28.8) have the highest Campania (29.9%) and Veneto (28.8) have the highest concentration of baths.concentration of baths.

DIMENSIONAL PROFILEDIMENSIONAL PROFILE• Bath industry employees, Bath industry employees,

including seasonal workers, range including seasonal workers, range from around 16,000 units of direct from around 16,000 units of direct employees to about 60,000 employees to about 60,000 “indirect” employees.“indirect” employees.

• Most of the baths are medium-Most of the baths are medium-sized companies (about 65% of sized companies (about 65% of them employ between 25 and 100 them employ between 25 and 100 people). people). 10 are larger companies with more 10 are larger companies with more than 200 employees.than 200 employees.

• Legal status: LTD, Government-Legal status: LTD, Government-owned companies, cooperatives, owned companies, cooperatives, sole proprietorshipssole proprietorships

• Bath regional presence : Veneto Bath regional presence : Veneto (85), Campania (55) , Tuscany (85), Campania (55) , Tuscany (23), Emilia-Romagna (19), (23), Emilia-Romagna (19), Lombardy (16), Lazio (15).Lombardy (16), Lazio (15).

SPA TRENDSSPA TRENDS• In 2008, total gross revenues In 2008, total gross revenues

reached around € 774 million reached around € 774 million corresponding to an average corresponding to an average of just under 3 million euro of just under 3 million euro per company. In 2009, total per company. In 2009, total revenues almost reached € revenues almost reached € 788 million.788 million.

• In term of added value, after In term of added value, after a +3,3% in 2008, a decrease a +3,3% in 2008, a decrease of 1,3% was recorded in 2009.of 1,3% was recorded in 2009.Therefore, compared to the Therefore, compared to the other related sectors (eg hotel other related sectors (eg hotel business and complementary business and complementary - 6.9 %), the reduction was - 6.9 %), the reduction was much lower.much lower.

• This confirms that bath This confirms that bath companies have better companies have better reacted to the economic reacted to the economic downturn.downturn.

SPA DEMAND SPA DEMAND IN ECONOMIC DOWNTURNIN ECONOMIC DOWNTURN

• The demand of traditional thermal The demand of traditional thermal treatments has remained steady.treatments has remained steady. In In 2009, in contrast with the previous 2009, in contrast with the previous three months, the main contributor to three months, the main contributor to the revenue growth came from the the revenue growth came from the traditional treatment sale (+2 %).traditional treatment sale (+2 %).

• On the contrary, the demand of beauty On the contrary, the demand of beauty services has showed flexibility with services has showed flexibility with respect to the income, although many respect to the income, although many companies have reduced prices and companies have reduced prices and increased promotion strategies to increased promotion strategies to support the demand.support the demand.

• Revenues from the well-being and Revenues from the well-being and beauty services, in fact, have beauty services, in fact, have dramatically decreased. Their growth dramatically decreased. Their growth rate went down from 5.1% in 2008 to rate went down from 5.1% in 2008 to 1, 8% in 20091, 8% in 2009

FLUCTUATION IN TOURIST FLUCTUATION IN TOURIST FLOWSFLOWS

• Fortunately, tourist flows from abroad have not affected the Fortunately, tourist flows from abroad have not affected the spa industry, not even those from the non-EU countries (the spa industry, not even those from the non-EU countries (the highest rate is represented by Italian guests).highest rate is represented by Italian guests).

• The downsize of foreign guests (especially American) did not The downsize of foreign guests (especially American) did not dramatically affect the spa industry.dramatically affect the spa industry.

• In those spas with a high rate of foreign guests, the fall of the In those spas with a high rate of foreign guests, the fall of the demand was partially offset by the domestic demand increase.demand was partially offset by the domestic demand increase.

HEALTHHEALTH

HISTORY AND CULTUREHISTORY AND CULTURE

Local development and Local development and TourismTourism