victoria’s geothermal and natural mineral water tourism investment opportunities
september 2007 contents
1 Executive Summary...... 4 2 Tourism Opportunities...... 6 Domestic and international market positioning...... 6 Who is investing in natural spa tourism?...... 6 Why invest in natural tourism?...... 7 International development...... 7 What’s on offer in Victoria – Potential for growth...... 7 3 Existing Spa Tourism Market Nationally...... 9 Age...... 9 Gender...... 10 Geographic profile...... 10 Visitation...... 10 Accommodation and travel preferences...... 11 Potential for market growth...... 11 4 Victoria’s Geothermal Water Resources...... 12 History of geothermal water use...... 12 Current and potential use...... 13 Victoria’s geothermal provinces...... 13 5 Victoria’s Natural Mineral Water Resources...... 19 History of mineral water use...... 19 Current and potential use...... 20 Victoria’s natural mineral water provinces...... 22 6 International Development Examples...... 26 Europe...... 26 Japan...... 30 USA...... 31 South East Asia...... 31 New Zealand...... 32 7 References...... 34 Further reading...... 34 Footnotes...... 34 Maps and figures...... 34 Key organisations...... 35 8 Terms and Definitions...... 36 Appendix A Statutory considerations...... 37 Appendix B Planning and design...... 39
Disclaimer This document has been created as a source of information on tourism development potential in Victoria. Parties investigating these opportunities must seek specialist hydrogeological advice on natural mineral and geothermal water occurrences. In relation to mineral water proposals, it is important that investors also work closely with the Victorian Mineral Water’s Ministerial Advisory Committee and the Department of Sustainability and Environment (DSE) which have responsibility for the protection and management of these valuable and naturally occurring assets. Further technical data on specific sites can be found on the Victorian Mineral Water Committee and DSE website. Tourism Victoria is available to assist investors with development and research inquiries.
Cover image: Peninsula Hot Springs
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victoria’s geothermal and natural mineral water tourism investment opportunities MESSAGE FROM THE MINISTEr
Victoria is very fortunate to have ready access to natural mineral springs and geothermal waters.
These springs and water reserves present Victoria with a fantastic opportunity to further develop as an international destination for natural spa tourism.
Geothermal water and mineral springs have long been associated with improving mental and physical health through therapeutic bathing, relaxation and drinking enjoyment.
Internationally there are many popular tourism developments built around these natural resources, as demand for lifestyle destinations and experiences grow.
These guidelines have been developed at a time when the spa and wellness industry is experiencing rapid growth. In Victoria, this sector has the potential to provide significant economic and social benefits.
They describe the key characteristics of Victoria’s geothermal water and mineral spring resources, providing an insight into the demand for services and the development potential of new and existing facilities in regional communities.
It is hoped they will increase awareness of Victoria’s geothermal water and mineral spring resources and help to better coordinate investor inquiries to state and local government.
The Victorian Government has a keen interest in this sector, and is committed to working with local government, community groups and investors who wish to explore the exciting opportunities presented by Victoria’s natural advantages.
TIM HOLDING MP Minister for Tourism and Major Events
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victoria’s geothermal and natural mineral water tourism investment opportunities 1. Executive Summary
Victoria’s geothermal and natural mineral water resources are naturally pure products. Formed by hydro-geological processes, they contain varied and unique concentrations of minerals that cannot be artificially replicated by heating or treating normal ‘fresh’ surface or reticulated water.
Geothermal water and natural mineral water have long been associated with mental and physical health benefits whether for therapeutic bathing or enjoyment from drinking. Around the world there are many popular tourism developments built around these natural resources, which are experiencing increasing demand from people for improved health and as lifestyle destinations and experiences.
Figure 1 Victoria’s geothermal and natural mineral water occurrences
Portsea
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victoria’s geothermal and natural mineral water tourism investment opportunities 1. executive summary
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Spa visitation in Australia is growing at a rapid rate; nationally there were 225,000 domestic overnight visitors to health spas in year ending June 20061, an average annual increase of 12.7% since year ending June 2004. This outperformed the annual average growth rate of total domestic overnight visitation. Victoria’s market share of Australian domestic spa visitors is 27% making it the third largest market after Queensland and New South Wales. In the year ending June 2006 there were 100,600 international spa visitors2, an average annual increase of 25.4% since year ending June 2004. It must be noted however that due to the lack of existing product, most of these statistics are based on spa experiences that do not necessarily involve natural geothermal or mineral water.
Victoria is uniquely positioned in Australia with significant geothermal and natural mineral water resources with the potential for greater development to attract local, interstate and overseas visitors. With a population of more than 3.6 million, Melbourne is Australia’s second most populated city and gateway to a variety of popular regional destinations within 1.5 hours by road. In the year ending June 2006 Victoria attracted 1.4 million international overnight visitors, 17.3 million domestic overnight visitors and 31.8 million domestic daytrip visitors.3
Increasing demand for authentic health and lifestyle experiences based around geothermal and natural mineral water resources such as hydrotherapy, massage, mud packs and natural saunas provide attractive tourism and economic opportunities in regional Victoria, particularly when complemented by the provision of ancillary accommodation, restaurants and conference centres.
Based on their strong popularity, the development of a geothermal complex on the Mornington Peninsula with a Japanese theme and the popular natural mineral water at the Hepburn Mineral Springs Bathhouse (currently undergoing redevelopment), provide evidence of the potential demand and profitability of authentic facilities. A new mineral water spa facility at the Lake House, Daylesford known as Salus Spa is also proving popular. Overseas resort comparisons demonstrate the potential to expand and establish a greater number of these facilities throughout Victoria which will provide wider economic and social benefits to local communities.
This paper provides a broad insight into the demand for services and facilities, location and characteristics of Victoria’s geothermal and natural mineral water resources, the opportunities available to expand and establish new facilities and an indication of the success of overseas developments with the potential to be replicated in Victoria.
Lake Daylesford Salus Spa, Daylesford
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victoria’s geothermal and natural mineral water tourism investment opportunities 2. Tourism Opportunities
Geothermal and natural mineral water has long been associated with mental and physical health benefits, be it by bathing or consumption, and there are many examples where major tourism attractions and resorts have been built around these resources.
Victoria’s opportunities from a tourism perspective lie in several areas.
Domestic and international market positioning In 2005, Tourism Victoria launched Victoria’s Spa and Wellness Tourism Action Plan 2005–2010 aimed at enhancing the offering of Victoria’s spa product for the domestic and international markets.
Tourism Victoria’s marketing programs are intended to position Victoria as Australia’s preferred destination for high yielding major sporting and business events, food and wine, and road touring. Road touring takes advantage of Victoria’s relative compactness and landscape diversity across 11 tourism product regions.
Geothermal water and natural mineral water resources Victoria’s geothermal water and mineral spring resources are widespread, largely accessible for tourism purposes, and under developed. In several instances, these groundwater resources are already recognised for their therapeutic values, thus providing further opportunity to build on an established destination or brand.
Increasing demand for health and lifestyle destinations and experiences There appears to be increasing demand for authentic health and lifestyle products such as hydrotherapy and associated therapies (eg: massage, mud wraps, saunas) as well as complementary services including accommodation, cafes, restaurants, and conference centres that are built around natural groundwater sources. Wider opportunities also arise in terms of natural mineral water bottling, merchandising and sales.
Who is investing in natural spa tourism? Investors in the natural spa tourism industry are varied. In Australia it is a relatively new industry, and the current track record shows that State and Local Governments are commonly involved with spa developments, such as the Hepburn Mineral Springs Bathhouse and the potential development at Geelong’s Eastern Beach. The Hepburn Mineral Springs Bathhouse is owned by Local Government and will be leased to a private operator (following the current redevelopment).
There are some private investors actively pursuing potential spa development sites in Victoria, and it is expected that a number of private businesses will open in the near future on private land.
Currently, the only geothermal spa facility in operation in Victoria is the Peninsula Hot Springs. Private developers who owned land on the Mornington Peninsula financed this venture. A geothermal bore was installed to provide water to the spa facility. Another geothermal resort facility is currently under construction on Victoria’s west coast in Warrnambool.
Overseas the investor base is similar but more widespread and on a much larger scale. There are the private owner/operators of smaller scale spas, and large scale developments where investors include local governments, private/public joint ventures, health and wellness companies and large hotel chains. Hanmer Springs in New Zealand is a successful example of a local government solely owning, operating and expanding a geothermal spa facility.
In Europe, spa developments have often been supported by governments that recognise their contribution to the tourism industry. In the United Kingdom there are coordinated efforts to promote spa heritage towns and ensure that the United Kingdom remains on the list of spa locations to visit.
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victoria’s geothermal and natural mineral water tourism investment opportunities 2. tourism opportunities
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Why invest in natural spa tourism? In Australia, spa tourism is in its infancy and enjoys an expanding market. Upcoming years will provide a window of opportunity for astute investors to gain a significant share in the market and a long-term foothold. Being early days, market research figures for existing and potential natural spa visitor statistics are limited. Recent research has been completed by Tourism Victoria into the spa industry in Australia.
Further information on tourism statistics is available from the Australasian Spa Association and Tourism Victoria.
International development Spa tourism is flourishing on the world-wide stage. Internationally there are hundreds of successful spa developments, based on both geothermal and natural mineral water supply, and the market continues to gain momentum.
Renowned spa development areas are featured in Chapter 6, of this paper.
What’s on offer in Victoria – Potential for growth Since the early 1980s a renewal of interest in natural healing and relaxation has bought hydrotherapy to the forefront, and rejuvenated the tourism industry in central Victoria. The Hepburn Mineral Springs Bathhouse was renovated and re-opened in 1986 to meet the renewed tourism demand for spa therapy. Currently there are developments underway that will double the size of the complex, which reflects increased demand in the last decade for mineral springs tourism in the region. Prior to its recent closure (for redevelopment) the bathhouse was servicing around 90,000 visitors per annum. In addition to this development there are over 25 recognised mineral springs in central Victoria that are visited on a regular basis and natural mineral water has been bottled commercially in a number of locations.
Despite Victoria’s relatively small size it offers a range of tourism attractions that more than rival its neighbouring states. The results of the International and National Visitor Surveys, undertaken by Tourism Research Australia, indicated that in the year ending June 2006, 17.3 million domestic overnight visitors and 1.4 million international tourists visited Victoria, of these 62% visited regional locations. Victoria’s abundance of natural and historic attractions and major events ensure a range of activities to meet a variety of visitor’s needs.
The Australian spa market has not taken full advantage of this growing trend to date. Relative to Australia’s major tourism competitors its share of the market is small, which is primarily attributable to the lack of high quality facilities and awareness.
Victoria’s share of Australia’s domestic overnight spa market is strong, having four of the top ten spa regions representing 24% of Australia’s total spa market.4 Victoria’s market share of domestic daytrip spa visitors (67%) is significantly higher than its market share of total domestic visitors (24%).5
Four of the top ten destinations for domestic overnight spa visitation in Australia are in Victoria, these are the:
• Daylesford and the Macedon Ranges region (received 8% of total national spa visitors and 30% of Victorian domestic spa visitors.6 It is important to note that in this same period, 5.6% (65,000) of domestic daytrip visitors to the Daylesford and the Macedon Ranges region visited a health spa (this represents 69.9% of domestic daytrip spa visitors to Victoria).7 • Melbourne region (received 7% of total national spa visitors and 18% of Victorian domestic spa visitors).8 • Great Ocean Road region (received 5% of total national spa visitors and 18% of Victorian domestic spa visitors for year ending June 2006).9 • Murray region (received 4% of total national spa visitors and 15% of Victorian domestic spa visitors).10
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victoria’s geothermal and natural mineral water tourism investment opportunities 2. tourism opportunities
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There is significant potential for additional domestic spa customer growth. A potential spa tourist is classified as a person who has paid for personal services to increase their wellbeing and include health services (e.g. massages, naturopathy), grooming services (e.g. facials, manicures) and personal fitness training.
Peninsula Hot Springs The Peninsula Hot Springs represents a case study of a successful new tourism investment built to meet spa tourism opportunities. The facility is set on a 42 acre site in Melbourne’s Mornington Peninsula. It offers a Japanese spa experience with geothermal waters providing spa temperatures of up to 50°C. The spa was opened in 2005, and has directly generated around 70 jobs in the region, ranging from catering staff to massage and beauty therapists. In its first year of operating it attracted around 4,500 visitors. Guests have the option of selecting from a range of indoor and outdoor hot geothermal water spas in either a public or private setting.
Figure 2 Peninsula Hot Springs
Private Pools Spa Dreaming
Public Pools
Public Pools
Indoor Public Cafe Pools
Therapies on offer include a range of traditional massages, steam rooms, and salt or mud baths. To keep up with visitor demand, Peninsula Hot Springs is already developing expansion plans that will see the facility more than double in size.
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victoria’s geothermal and natural mineral water tourism investment opportunities 3. Existing Spa Tourism Market Nationally
The nature and number of visitors to spa facilities, on a global level is growing. Underpinned by the increasing affluence of western society, the spa phenomenon is making its presence felt in every westernised nation and in many non-western countries, particularly those with a strong tourism industry and a culture of health and wellbeing.
The following data has been gathered from a Holiday Tracking Survey conducted by Roy Morgan Research between 2003 and 2006.
Age The comparative age profiles of the total population, total domestic visitors and domestic spa tourists reveals that interest in spas is wide spread amongst all age groups and in particular younger people.
Figure 3 Age profile of domestic spa tourists in Australia
0ERCENTAGE
4O T A L 4OTAL DOMESTIC $OMESTIC POPULATION LEISURE VISITORS SPA VISITORS
n n n n AND OVER
Source: Holiday Tracking Survey, Roy Morgan Research, Wilsons Promontory National Park year ending June 2003–06
Peninsula Hot Springs
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victoria’s geothermal and natural mineral water tourism investment opportunities 3. Existing Spa Tourism Market Nationally
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Gender Further analysis indicates that the majority of domestic spa visitors within Australia are female, comprising 62% of visitation.
Figure 4 Gender profile of domestic spa tourists in Australia
0ERCENTAGE
4O T A L 4OTAL DOMESTIC $OMESTIC POPULATION LEISURE VISITORS SPA VISITORS
-EN 7OMEN
Source: Holiday Tracking Survey, Roy Morgan Research, Peninsula Hot Springs year ending June 2003–06
Geographic profile While no specific data has been collected regarding the geographical dispersion of spa visitors, there is an awareness of the general catchment size of such facilities. A spa visitor is typically prepared to travel up to 150 kilometres for a treatment at a high quality spa complex. A Victorian development, within 150 kilometres of Melbourne’s CBD, could expect to appeal to a domestic visitor market of 3.8 million people.11
It is expected that domestic spa visitors and local residents would make up a significantly larger proportion of the spa tourists market than international visitors. Domestic tourists and local residents are expected to make up 25% and 65% of all spa visitors respectively.12
Visitation Local residents are more commonly repeat visitors to spa complexes. They normally would attend twice per year compared with non-locals who rarely visit more than once a year.
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victoria’s geothermal and natural mineral water tourism investment opportunities 3. Existing Spa Tourism Market Nationally
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Accommodation and travel preferences Fifty-two percent of domestic spa tourists to Victoria stayed at a hotel or motel on their last trip. A relatively high proportion of spa tourists to Victoria stayed at a bed & breakfast (26% compared with 12% of overall domestic spa tourists and only 3% of overall tourists).13 The largest proportion of total domestic tourists stayed with friends or relatives, highlighting the potential of word-of-mouth to generate greater awareness and conversion.
The general transport preference of spa visitors is by car, caravan or campervan indicating mobility to travel to spa destinations (87%).14
Fifty-three percent of domestic spa visitors are classified as Big Spenders15, defined as undertaking significant personal expenditure. On average the domestic spa visitor spent $120 per person per night on their last spa trip.
Potential for market growth Since 2004 the Australian spa market has experienced above average growth, both from domestic and international visitors. Spa visitation in Australia is growing at a rapid rate of 12.7% p.a. for domestic overnight visitors and 25.4% among international visitors over the period June 2004–2006, considerably outperforming the national average tourism growth in both markets.
Figure 5 Growth in domestic spa visitation in Australia
0ERCENTAGE
!NNUAL AVERAGE GROWTH RATE *UNE n
$OMESTIC )NTERNATIONAL
4OTAL VISITORS 3PA VISITORS
Source: International and National Visitor Surveys, Peninsula Hot Springs Tourism Research Australia, year ending June 2004–06
If these growth rates can be sustained in the coming years through increased development and investment in spa facilities, the Victorian spa market has the potential to become a significant international attraction.
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victoria’s geothermal and natural mineral water tourism investment opportunities 4. Victoria’s Geothermal Water resources
High geothermal temperature reservoirs contain naturally pressurised steam and hot or boiling water, stored in porous rock or sand, which has been heated by energy associated with recent volcanism.
In some areas of the world, hot rocks exist very close to the surface and hot water or super heated steam can be conveyed to the surface through fissures or vents. In this terrain hot springs, boiling mud pools or geysers may be present. They can only be found in certain areas of the world, for example Japan, New Zealand and other countries in which there are active volcanoes and magma that is relatively close to the surface. There are also geothermal ‘hotspots’ in places like Hawaii, Iceland, Italy, Yellow Stone (USA) and the Rift Valley of East Africa.
Victoria’s geothermal waters are of much lower temperature and have been formed by the circulation of groundwater in deep sedimentary basins where temperatures of up to 60°C are present as the result of normal thermal gradients in the earth’s crust. These resources can be sourced by drilling into saturated porous sand aquifers lying within the sedimentary basins (this is also the case for many of New Zealand’s geothermal resorts).
History of geothermal water use The utilisation of geothermal water dates back many thousands of years. There is evidence that the Japanese used hot springs for bathing and cooking from 11,000 BC, and also that the Native American Indians settled near hot springs in North America around 7,000 BC and that they used them for bathing and medicinal purposes.
The Roman Empire’s use of geothermal water for bathing spread across most of Europe and was well established by the first century BC.
Electricity generation from geothermal resources dates back to the early Twentieth Century when the first small scale facility was developed in Tuscany, Italy. Since then, geothermal power stations have been constructed in many countries including New Zealand, Japan, the USA, Indonesia and Kenya. In Australia a small geothermal plant has been operating since 1992 at Birdsville in Queensland. This plant uses water at about 100°C from the Great Artesian Basin and generates about a third of the town’s energy needs.
Despite the size and potential of Victoria’s geothermal groundwater resources, to date their use has been limited. The popular Peninsula Hot Springs provide a wide range of bathing and treatment options which have been developed with a Japanese theme.
A new hotel development under construction in Warrnambool will include a new bore and geothermal day spa and is due to open September 2007. The Deep Water Geothermal Baths will include a large indoor pool and hydrotherapy spas on the Warrnambool waterfront.
Deep Water Geothermal Baths, Warrnambool 12
victoria’s geothermal and natural mineral water tourism investment opportunities 4. Victoria’s Geothermal Water resources
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More recently, Local Governments have commissioned studies to examine the potential viability of new hot spring bathhouse facilities in Metung and Port Fairy.
To facilitate the harnessing of this potential green energy resource, the Victorian Government has introduced legislation to support investment in geothermal energy. The Geothermal Energy Resources Act 2005 puts in place a framework that: • gives secure title to the resource, • provides efficient and effective allocation processes, and • establishes transparent, fair and efficient land use and environment planning and land access processes. The legislation ensures that health, safety and environmental issues are considered as part of geothermal operations.
The new legislation is designed to encourage major energy investment projects. Projects that involve bores at temperatures less than 70°C or where the heat source is less than one kilometre below the earth’s surface, will not require an exploration permit. The developer will however be required to obtain a licence from the controlling water authority approving installation of the geothermal bore and authorising extraction of water from the bore.
Current and potential use Geothermal energy has several advantages over water that has been heated by the burning of fossil fuels. It can provide a sustainable supply of energy and water over long periods of time, and compared with most other energy sources, is safe and has minimal environmental impact. The operating costs of geothermal energy are relatively inexpensive compared with other energy sources, particularly after the initial capital outlay for infrastructure has been recovered.
While high temperature geothermal resources can be used to generate electricity, the lower temperature resources commonly found in Victoria (typically between 35–60°C) are often used in spas, and in the heating of buildings, swimming pools, greenhouses, and fish farms. Other uses include the washing of wool, pasteurising milk, dehydrating fruit, production of paper and various industrial processes.
Sometimes, geothermal water is piped to a number of buildings in a suburb or town where it is used for space heating. This is called a ‘district heating scheme’ and the best current example is the city of Reykjavik, capital of Iceland, where most homes are heated using piped hot water. Until recently, geothermal water was used to heat a number of public buildings and a swimming pool in Portland, Victoria. The bore has been decommissioned for repair.
Victoria’s geothermal provinces Victoria has three geothermal basins. The coastal region is underlain by two major sedimentary basins: the Otway and Gippsland Basins. The basins contain thick layers of unconsolidated sediments and highly productive aquifers that possess waters at elevated temperatures. Inland Victoria is underlain by the Murray Basin which extends into South Australia and New South Wales.
Lakes Entrance Beauchamp Falls 13
victoria’s geothermal and natural mineral water tourism investment opportunities 4. Victoria’s Geothermal Water resources
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Otway Basin The Otway Basin is one of a series of margin basins straddling the southern Australian continent. Several major structural units have been recognised within the Basin consisting of uplifted regions, such as the Dundas Highlands (south of the Grampians) and Otway Ranges. The sedimentary pile reaches a maximum thickness of some 2,500m along the coastal strip and in excess of 3,000m offshore where some 60% of the basin lies.
The Otway Basin’s sand aquifers are highly transmissive and bore yields of up to 140L/sec have been attained in many areas across the basin. Groundwater salinity is lowest at locations flanking the Otway Ranges to the west and south of Hamilton.
Groundwater temperature across the basin is variable, but mostly ranges between 30–70°C. Between Portland and Anglesea, temperatures vary 40–60°C. As a general rule temperatures are found to increase with depth. In the Otway Basin maximum depth of the sediments is about 2,000m at Portland and temperatures of 60°C are obtained. Figure 6 provides a summary of the geothermal temperature gradients throughout the Otway Basin.
Stretching from the South Australian border, the Otway Basin covers approximately half of Victoria’s coast line, and contains a number of significant tourist destinations. Some of the major attractions include the greater Melbourne area, Mornington Peninsula and the Great Ocean Road.
Portsea Twelve Apostles
Just over an hour from Melbourne on the eastern side of Port Phillip Bay, Mornington Peninsula is one of Victoria’s premium wine regions. The region is also well known as a golfing haven featuring a number of world-class courses. The Mornington Peninsula is serviced by many stylish towns located along the coastline, many featuring established eateries, boutiques, markets and galleries.
Victoria’s west coast is home to the Great Ocean Road. Known as one of Australia’s most spectacular coastal drives, the Great Ocean Road is visited by a large number of the State’s international visitors and culminates at the Twelve Apostles, a series of striking rock stacks that rise out of the Southern Ocean. The nearby Otway Ranges feature some of the best rainforest scenery in Australia and is home to an emerging nature-based tourism industry.
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victoria’s geothermal and natural mineral water tourism investment opportunities 4. Victoria’s Geothermal Water resources
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For the year ending June 2006, 10.0 million domestic overnight visitors, 18.3 million domestic daytrip visitors and 1.5 million international overnight visitors collectively visited the Otway Basin region.16
Figure 6 Average geothermal temperature gradients in the Otway Basin
Degrees Celcius per 100m of bore depth 15 14 13 12 11 10 9 8 7 6 5 4 3 2
Table 1 Otway Basin geothermal characteristics
Site Depth to Aquifer m Groundwater temp °C Salinity mg/LTDS Estimated Yield L/sec * Altona 120–200 20 3,000 10–20 Anglesea 300 38 420 20–40 Curdie Vale 600 41 3,500 75 Geelong 50–100 21–26 7,500–11,000 2–10 Mornington 500 50 3,700 20–40 Narrawong 900–1,400 53–60 710 140 Peterborough 1,400 63 <1,000 60–100 Port Campbell 500 40 250 75 Port Fairy 500 41 1,060 140 Portland 800–1,500 45–60 600–100 140 Princetown 800–1,200 71 Brackish (2,000) Unknown Warrnambool 500 44.5 3,500 50 Werribee 300 26–28 3,500 10–20
* Bore yields are indicative, and will vary depending on bore construction.
In the Otway Basin the town of Portland has used geothermal water for heating, while geothermal water is cooled for domestic supply at Port Fairy, Curdie Vale and Port Campbell.
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Gippsland Basin The sedimentary Gippsland Basin covers a large portion of coastal South-east Victoria extending as far north as the Eastern Highlands. The basin reaches a maximum onshore thickness of 2,000m and almost 80% of the basin lies offshore. The basin contains thick beds of sand and gravel that form highly permeable aquifers that are separated by low permeability coal, clay and marl. The aquifers of interest for geothermal water are located in basal formations that extend over most of the Gippsland Basin. Groundwater temperatures are mostly in the range of 40–65°C with the highest on shore temperatures along the middle of the Latrobe Valley around Lake Wellington and along the coastal section between Seaspray and Metung. The highest temperature is recorded around Lake Wellington (70°C at 500m to 1,200m).
At little over two hours from Melbourne, the Gippsland Basin includes a number of significant tourist locations, and attracts 1.6 million domestic overnight visitors, 2.2 million domestic daytrip visitors and 50,000 international overnight visitors annually.17
The Gippsland region hosts many natural attractions, mountain adventures and spectacular coastlines. Wilsons Promontory is one of Victoria’s best-known attractions. The 50,000 hectare national park features unspoilt beaches, cool fern gullies, spectacular rock formations, an abundance of wildlife and impressive views. Some of the other major attractions of the region include the Gippsland Lakes, 90 Mile Beach, Sale wetlands, East Gippsland Rail Trail, and Lakes Entrance coastal park. These locations provide visitors with the opportunity to partake in numerous activities including boating, fishing, resort relaxation, bushwalking and hiking. The popular Sydney to Melbourne coastal touring route cuts through this region and provides a wonderful opportunity to capture the growing road touring market. The potential development of a car ferry service from Cowes to Stony Point could extend the coastal touring route through to the Great Ocean Road.
Figure 7 Gippsland Basin geothermal temperature gradients
Degrees Celcius per 100m of bore depth 15 14 13 12 11 10 9 8 7 6 5 4 3 2
Table 2 Gippsland Basin geothermal characteristics
Site Depth to Aquifer m Groundwater temp °C Salinity mg/LTDS Estimated Yield L/sec * Golden Beach 750 45 1,200 50 Loch Sport 1,080 59 1,300 75 Metung 500 44 2,000 15 Paynesville 600 59 1,597 10 Sale 980 65 491 60
*Bore yields are indicative, and will vary depending on bore construction.
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Murray Basin The Murray Geothermal Basin stretches from the west of Echuca to the South Australian border and covers a significant proportion of the State. Only a small amount of existing bore information is currently available for this region.
Groundwater temperatures are mostly in the range of 35–50°C with the highest temperatures being in the Mallee region to the west of Mildura. The highest recorded temperature is at Gunamalary (near Jeparit), (60°C at 718m).
Figure 8 Murray Basin geothermal temperature gradients
Degrees Celcius per 100m of bore depth 50
45
40
35
30
25
20
15
Table 3 Murray Basin geothermal characteristics
Site Depth to Aquifer m Groundwater temp °C Salinity mg/LTDS Estimated Yield L/sec * Big Desert 1,250 42 Gunamalary 718 60 1,180 50 Mildura West 598 50 Echuca 150 23 Unknown 30
*Bore yields are indicative, and will vary depending on bore construction.
The Murray Basin covers a significant portion of Victoria’s north western region, and many existing tourist attractions. For the year ending June 2006, the region attracted 1.4 million domestic overnight visitors, 1.1 million domestic daytrip visitors and 29,300 international overnight visitors.18 Visitors to the region enjoy wine and food based activities and national parks.
The Murray River itself forms the border between New South Wales and Victoria and attracts significant visitation, with house boating and paddle steamers among the more popular activities. The Murray region enjoys great climate, historic towns, superb food and wine and endless opportunities for outdoor activities. The region boasts an abundance of Aboriginal art and heritage, as well as picturesque camping, fishing and camping grounds.
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Paddle Steamer Emmylou, Echuca. Photographer: Holger Leue Mildura
Mildura is serviced by regular flights from Melbourne and is known for its fresh local produce, wineries and the World Heritage listed Mungo National Park with its spectacular sculpted sand hills and ancient Aboriginal history. Further along the Murray River is the historic town of Echuca with its rich riverboat history, it is home to the largest paddle steamer fleet in Australia.
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victoria’s geothermal and natural mineral water tourism investment opportunities 5. Victoria’s Natural Mineral Water Resources
Virtually all the natural mineral water resources in Australia are found in Victoria with the majority found in the Hepburn and Daylesford region. A surprising number of historic springs have been documented in other locations throughout the State – from Geelong and Clifton Springs in the south to Yea and Mansfield in the north. The Geelong site at Eastern Beach however is the only site outside of central Victoria that has a working spring and hand pump that is accessible for tasting.
The natural mineral waters of central Victoria evolve as groundwater moves through deep persistent fractures and faults in bedrock. Rainfall infiltrates the fractures along the elevated ridges of the Great Dividing Range. Groundwater may circulate to great depths of up to 5 kilometres before returning to the ground surface. Natural mineral water discharges at springs in low-lying areas. Compared with Victoria’s geothermal waters, Victoria’s natural mineral waters have higher mineral concentrations.
The flow rate from individual mineral springs is generally low, in the order of 0.01 to 0.4L/sec. Natural mineral water is generally crystal clear and effervescent. The water chemistry is variable; the total dissolved solids content of Victoria’s natural mineral water resources falls in the range 380 to 10,000 mg/L. The surface discharge of mineral water in Victoria is generally cool.
There are over 100 recognised natural mineral springs in Victoria, by far the highest number of mineral springs in Australia. The Victorian Mineral Water Committee (VMWC) has the responsibility for the protection and management of the State’s natural mineral water assets.
Mineralised groundwater is typically many thousands of years old and formed by the infiltration of rain and surface water into the ground and its subsequent percolation and accumulation in permeable geological units known as ‘aquifers’. During the groundwater migration, minerals are absorbed from the aquifer giving the water distinct chemical characteristics for which geothermal and particularly natural mineral waters are renowned. Different flow paths and geology produces variations in groundwater temperature and chemical composition, which may have a bearing on its potential therapeutic properties.
History of mineral water use Mineral water has been used for therapeutic purposes around the world for many thousands of years, there is archaeological evidence of mineral springs in Asia during the Bronze Age (circa 3,000 BC), and biblical references allude to the practice of bathing and drinking.
In ancient Greece, springs were believed to have supernatural powers, and to be the dwelling places of gods. Therapeutic centres called Asclepieia, after Asclepius the mythological God of Health, were built at mineral springs throughout the Greek realm. The Romans followed the practice, establishing baths across their empire, perhaps the most well known of those being in Bath, England, still operating today and profiled in a later chapter.
The natural mineral springs and mineral waters of Victoria were recognised from the early to mid 1800s and their commercial development followed soon after European settlement. The history of the discovery of natural mineral springs pre-dates the discovery of gold. In 1836 Captain Hepburn found and named the Hepburn Mineral Spring. During the 1850s gold rushes, many natural springs were found in Central Victoria as the forests, creeks and gullies were explored and dug over for gold. Gold seekers, many of whom were familiar with the mineral springs of their European homelands, relied on the pure spring waters for drinking. It wasn’t until the early 1900s however, when gold had all but disappeared, that the therapeutic qualities of natural mineral water was popularised.
The commercial development of Victoria’s natural mineral water resources has followed several different paths including bottling, carbonation, recreational facilities and bathhouses.
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victoria’s geothermal and natural mineral water tourism investment opportunities 5. Victoria’s Natural Mineral Water Resources
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The period from the 1890s to the 1930s was the golden era of natural mineral water in Victoria. The bathhouse at Hepburn Springs was developed, and although bathing and consumption of the water was the main attraction of the springs, socialising formed an integral part of the attraction of the area. Since this period the Central Victorian Spring Region has been referred to as the ‘Spa Centre of Australia’.
A similar history occurred at Clifton Springs located along the Bellarine Peninsula. A grand hotel was constructed at the springs in the 1880s to provide a range of treatments, as well as providing public baths on the foreshore. Later, the spring water was piped directly into the hotel to twelve bathing rooms from which a range of therapies, including massage and electro-hydro baths, were provided. The water was bottled at the site with over 32,000 bottles sold in 1888 in a profitable operation. Sadly, little evidence remains of the hotel or the springs at this site.
While some of Victoria’s natural mineral springs are located on private land, many are protected by public land reserves. Reserves were declared at Hepburn Springs in 1865, at Blackwood in 1879 and at Kyneton in 1913.
Current and potential use Today, Daylesford and Hepburn are the most popular natural mineral water destinations where several quality resorts provide a wide range of hydrotherapy treatments. Demand for balneotherapy (treatment of injuries and physical ailments by bathing and consuming natural mineral waters), at the Hepburn Mineral Springs Bathhouse, continues to exceed the capacity of the existing facility at peak times. In response to growing demand, a $10 million redevelopment of the Bathhouse is underway.
The Hepburn Mineral Springs Bathhouse redevelopment, will include the refurbishment of the existing heritage building to include relaxation, therapy, and massage rooms, and the development a new building to replace the existing pools facility. The Bathhouse is due to be reopened in early 2008.
Mineral Spring Rotunda, Kyneton Lake Daylesford
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victoria’s geothermal and natural mineral water tourism investment opportunities 5. Victoria’s Natural Mineral Water Resources
Continued
Hepburn Mineral Springs Bathhouse Redevelopment Plan
Extraction of natural mineral water for beverage production at Hepburn peaked in 1988 at 63ML. The commercial extraction of natural mineral water for drinking has since declined to 18.5ML (2003–04) reflecting the rise in popularity of heavily marketed bottled still water products.
There has been a renewed interest in natural healing and relaxation, which has brought hydrotherapy to the forefront, and increased interest in other areas of Victoria. Currently, the City of Greater Geelong is undertaking an appraisal of the merits of establishing a bathhouse facility at Eastern Beach on the shoreline of Corio Bay.
Geelong Mineral Springs Bathhouse concept
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victoria’s geothermal and natural mineral water tourism investment opportunities 5. Victoria’s Natural Mineral Water Resources
Continued
Victoria’s natural mineral water provinces The Central Highlands of Victoria hosts a high concentration of natural mineral water resources.
Figure 9 Location of Victoria’s Mineral Springs
Sturt Street, Ballarat
Central Victoria There are 141 recorded natural mineral springs in Central Victoria, each with differing mineral constituents. The majority of the recorded springs are on public land. Figure 9 shows the location of mineral spring reserves in Central Victoria.
The Central Victorian region offers a well established spa and mineral spring tourism market. Located only one hour north-west of Melbourne, Daylesford and the Macedon Ranges include the towns of Daylesford and Hepburn Springs. In the year ending June 2006 the region attracted 1.2 million domestic daytrip visitors, 412,000 domestic overnight visitors and 9,600 international overnight visitors.19
Daylesford is known as Australia’s premier spa and wellness centre where visitors can rejuvenate in the natural mineral water, explore antique shops and galleries and relax at one of the many cafés and restaurants. The historic town of Hepburn Springs is located only a few kilometres from Daylesford and is home to the Hepburn Mineral Springs Bathhouse and is located amidst the largest concentration of natural mineral springs in Australia.
Dining in Daylesford Relaxing in Daylesford
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victoria’s geothermal and natural mineral water tourism investment opportunities 5. Victoria’s Natural Mineral Water Resources
Continued
Figure 10 Natural Mineral Water Resources of Central Victoria
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victoria’s geothermal and natural mineral water tourism investment opportunities 5. Victoria’s Natural Mineral Water Resources
Continued
Vaughan-Glenluce Mineral Springs Reserve is a Crown Land reserve situated about ten kilometres south of Castlemaine on the Loddon River and adjoining the Chewton Castlemaine Historic Reserve. The reserve contains many natural mineral springs and has been a popular recreational site for about 100 years. The reserve was expanded several times after 1914 and now at almost 100 hectares is the largest natural mineral water reserve in Victoria. It contains numerous natural mineral springs, most of them in their natural state but several with hand pumps. Visitors can try at least three different types of natural mineral water. Although the reserve has undergone many changes in the last 140 years, it has a more natural feel than other larger mineral spring reserves. Its picturesque setting in the steep-sided Loddon River Valley creates a shady and refreshing haven in the hot summer months.
The natural mineral springs at Kyneton, once known as the Boggy Creek mineral springs, are located in the Kyneton Mineral Springs Reserve. The reserve dates back to 1887 and features an Edwardian rotunda that was built over the springs in 1913. There are also several documented springs on private land in the Kyneton area.
The Blackwood Reserve has two natural mineral springs approximately 50 metres apart. Surprisingly, the mineral content taste of each one is different. A rotunda was built over the iron spring in 1891 and another over the soda spring in 1914. The reserve was extended by nearly three acres in 1933 and again by 14 acres in 1940. A public caravan park was constructed in the reserve in 1955.
Geelong and Clifton Springs There are eight known natural mineral springs in the Geelong region including three in Corio. The discovery of Clifton Springs in 1804 is attributed to the escaped convict William Buckley. In the 1870’s a resort and bottling works (to replace inferior imports) was developed. Local Government has recently commissioned a feasibility study into the development of a natural mineral springs bathhouse on Geelong’s Eastern Beach foreshore.
Western Beach Baths, 1954, Geelong Historic Records
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victoria’s geothermal and natural mineral water tourism investment opportunities 5. Victoria’s Natural Mineral Water Resources
Continued
Geelong Eastern Beach
Geelong is Victoria’s largest regional centre and also one of the closest natural mineral spring locations to Melbourne. This waterfront city offers a diverse range of food, wine, cultural and recreation attractions and colonial history evident in the city’s 100 National Trust listed buildings. It is the gateway to the Great Ocean Road, and a number of popular coastal tourist destinations such as Torquay, Lorne and Apollo Bay.
In the year ending June 2006 the Geelong region attracted 970,000 domestic overnight visitors, 2.2 million domestic daytrip visitors and nearly 34,000 international overnight visitors.20
The Geelong Mineral Spring Bathhouse Feasibility Study (completed in May 2006), identified that a bathhouse at the Eastern Beach site had the potential to attract between 200,000 and 250,000 visitors per year and potentially generate revenues of between $1.85m and $2.9m per annum.
The City of Greater Geelong is currently undertaking further work on the concept design of the facility. Further information regarding this development opportunity can be obtained by contacting the City of Greater Geelong (details in reference section).
Geelong Waterfront Cunningham Pier, Geelong
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victoria’s geothermal and natural mineral water tourism investment opportunities 6. International Development Examples
The following section provides an overview of a variety of international natural spa developments, offering an insight into the range of development opportunities available, and the varying level of market maturity globally.
Europe
Baden-Baden – Germany
Baden-Baden is an internationally famous health resort town, 180 kilometres south of Frankfurt. The history of the mineral water at the town dates back to 213AD when the Roman Emperor Caracalla visited the town to ‘take the waters’ and bathhouses were subsequently built. There are two main spa complexes in Baden-Baden (Caracalla Spa and Friedrichsbad), each with a different theme and are aimed at different market segments. Both are operated by Carasana Baderbetriebe GMB.
The Caracalla Spa was opened in 1985. This spa offers something for everyone from general indoor thermal baths to outdoor whirlpools. The visitor can start in the cooler thermal pools at 28°C and move up to the hottest pool at 38°C before jumping into the cool immersion pool. The complex’s wide variety of baths and spas covers a water area of more than 900m2. Under cover is a number of bathing pools, a rock grotto with hot and cold water, a regenerated aroma steam bath, a saltwater inhalation pool and neck showers. Outside are two marble pools, a counter-current pool, a waterfall and two whirlpools. There are manicured gardens and an area for sunbathing, as well as a children’s play area.
Complementary services include the Roman Saunascape, which consists of 11 different saunas, varying from the sauna of silence to the fire sauna. The Blue Space liquid relaxation room is a new technology, utilising pale blue colours and soft vibrating beds for physical and mental relaxation. There is a bistro and bath shop in the complex. The cost for a single adult entry is €12–16, for a 2–4 hour session.
The second major spa complex in the town is the Friedrichsbad, referred to as the Roman-Irish bath. Originally constructed 125 years ago, the building retains striking architecture whilst incorporating modern spa facilities. These baths are aimed at the higher end of the market with numerous health and beauty services offered. There is a 16 step ritual bathing sequence aimed at regenerating the mind, body and soul. Increasing water temperatures are experienced in the thermal pool, the kinotheraputic pool and the whirlpool, followed by immersion in the cool water bath. This is followed by massage and relaxation. A single admission ticket costs €21. There is an extensive range of health and beauty treatments offered at the wellness centre based at Friedrichsbad. A speciality is the Thalasso-Thermal Therapy, which involves body peeling with seaweed products followed by thermal water baths and hydro massage. There is also a range of packages on offer combining the thermal baths and the health and beauty treatments.
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victoria’s geothermal and natural mineral water tourism investment opportunities 6. International Development Examples
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Bath – England
Much like the rest of Europe the spas of England date back to the Roman Empire. The town of Bath, built around the original Roman baths, Thermae Bath Spa is about an hour and a half out of London and is the only location in Britain where hot mineral water can be found.
Despite the abundance of mineral water resources and historical bathhouse facilities, until recently, the town was without any mineral spa facilities for over twenty years. The restoration costs associated with the heritage listed buildings in the spa precinct had been too costly and severely delayed redevelopments. In 1997 the town received £7.7 million in lottery funded charity money to develop a new facility. The total development cost came to approximately £45 million when the Thermae Bath Spa opened to the public in 7 August 2006.
The new facility offers a wider variety of state of the art wellness services. The new spa development has been structured around a design that combines the rich historical character of the site with new spa technology and modern architecture. The facility offers a wide range of bath and treatment options that are reasonably priced. A patron has the option of booking either an all day spa entry pass or a two or four hour entry ticket, at a cost of £50, £20 and £30 respectively. The bathing options on offer include thermal baths, steam rooms, an open-air roof pool, four aroma steam rooms, and a waterfall shower. Spa treatments available include vichy showering, hot stone massage, kraxen stove, body cocoons, facials, body care, and a wide range of massage options.
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victoria’s geothermal and natural mineral water tourism investment opportunities 6. International Development Examples
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Karlovy Vary – Czech Republic
Karlovy Vary, SKM
More than 30 spa towns are dotted throughout the Czech Republic. These towns and their bathhouses hold a reputation for outstanding service, beauty, elegance, curative properties and value for money. One of the most popular and well developed spa towns is Karlovy Vary. The curative properties of the hundreds of springs which service these spa towns were first discovered by monks in 1528. However they were difficult to access and not developed until the early 1800s.
The Nove Lazne is an iconic 5 star spa hotel, providing the benchmark for the spa industry in the Republic. It is located in the town of Marienbad which is surrounded by forested hills, and retains the 19th century spa atmosphere through its historical architecture. Created in 1896, and recently re-opened after upgrading in 2005, the hotel is famous for its health treatments although the grand architecture, peaceful surroundings and value for money are attracting increasing numbers of tourists from around the world. The upgrade included a conference centre as well as the introduction of new treatments and pools including sauna, steam bath, hot spring bath and underwater massages.
The Nove Lazne Spa Hotel has a grand Roman Spa complex including Jacuzzi pools, mineral baths with or without additives (including Dead Sea salt), whirling baths, and a range of hydrotherapies. The Royal and Imperial Cabins provide specialist bath experiences with the total water area of the complex being 1,660m2. The spa treatments are focused on treating motor system disorders and improving blood circulation.
A holistic approach to health is of significant importance at the spa hotel, with an emphasis on diet and complementary treatments. A new client will undertake medical examination by in-house doctors and specialists if required before an individual cure plan is developed.
Nove Lazne offers numerous spa packages either to provide relaxation or relief for a particular medical condition. A daily classical package involving four cure treatments and the use of pools in addition to accommodation, meals and medical examinations range from €144 – €250 per day (entry only for a mineral springs visit is €13. Guests are recommended to stay a minimum of seven days in order to enjoy the health benefits of the therapies although three week stays are common. Additionally, there are one or two week ‘wellness and beauty’ programs aimed at relaxation and holistic healing.
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victoria’s geothermal and natural mineral water tourism investment opportunities 6. International Development Examples
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Adler Thermae – Italy
The Adler Spa Resort is a family owned resort in Tuscany, that’s been in operation for almost 200 years, and has recently been registered as a UNESCO World Cultural Heritage site. The facility offers a range of services, that use globally accepted techniques whilst leveraging off a unique range of traditional Tuscan products including red grape, olive oil, sheep’s milk and honey. The facility employs a full time doctor, who offers a range of medical assessment packages and self improvement programs for visitors. The geothermal mineral waters used at the facility range in temperature from 28°C for the sports and activity pool, up to 36°C for the thermal pools. The range of pools on offer include a whirlpool, wild river, children’s play pool, herbal steam room, Etruscan salty steam bath, sauna on the travertine lake, steam baths, Rasul mud baths, and underground salt baths. Entry is typically via a package deal; however entry to use a mineral spa costs €36 for 20 minutes.
Blue Lagoon – Iceland
The Blue Lagoon in Iceland is a unique facility offering warm geothermal seawater, where patrons can bath in pools of hot water in a setting surrounded by snow. The facility’s unique services are not limited to its geothermal seawater, guests are able to swim in a geothermal beach, lava caves, silica mud baths and a geothermal steam bath. The facilities on offer at the Blue Lagoon include an indoor lagoon pool, a conference centre, and a restaurant with spectacular views overlooking the lagoon and premises. The geothermal water is pumped from a 2,000m deep bore, at 160°C, it is then cooled to a comfortable bathing temperature of 36–39°C. Admission is charged at €15. The facilities were first developed in 1992 and attract 350,000 visitors annually (70% international).
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victoria’s geothermal and natural mineral water tourism investment opportunities 6. International Development Examples
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Japan The mineral spa market in Japan is among the most mature markets in the world. Visitation to hot mineral baths, known as Onsen, is a very popular practice given the large number of low cost, high quality facilities. There are currently over 3,000 spas and 5,000 bathhouses using geothermal waters (according to 1998 data from Japan). There are both indoor and outdoor facilities that are either publicly run by a municipality, or privately owned often by a local inn or bed and breakfast. Entry fees for spas range from free for public facilities such as Kakujusen, up to ¥2,000 at Suginoi Palace the most expensive onsen in Japan. The average entry fee for a mineral spa in Japan is ¥200.
Onsens are typically found away from major cities, in the countryside, and are major tourist attractions for Japanese couples, families, or corporate groups. Traditional onsens are located outdoors, and use only naturally hot water from geothermally-heated springs. These should be differentiated from sentos, which are indoor public bathhouses in the major cities filled with heated tap water. Much like European cultures, the Japanese believe that the natural mineral waters have healing powers, which are derived from the mineral content.
Onsens are a part of everyday life in Japan, and deeply entrenched in the culture. It is not unusual for television celebrities to interview onsen owners and discuss the history and developments of their facilities. There is even a certification program run by the Tourism Bureau for ‘Hot Spring Masters,’ which is achieved after an individual has had their ‘Spa-port’ stamped at 88 different onsen.
Whilst accommodation, food, massages and therapies do play an important role in the Japanese bathhouse experience, the primary reason for local visitation is to enjoy the baths. Unlike Europeans whose typical spa visit occurs annually and lasts for several days (or several weeks in some cases) the Japanese prefer to visit more regularly and partake in a quick soak. Usually these quick soaks last for only an hour and do not involve any other therapeutic services.
There is a unique etiquette one must follow when entering a Japanese mineral spa. Prior to entering the hot pools a guest must first wash and rinse themselves thoroughly. Swimsuits are not allowed at traditional onsen, found in the countryside, rather guests are given a towel to wear when walking between the wash areas and the baths. With the exception of some of the more traditional facilities, most have gender-based pool separation, or at the very least offer a female only pool option. Modern onsen facilities found in larger towns have adopted a water park atmosphere and actively encourage the use of swimsuits.
Kannawa-en Inn
Kannawaen is a traditional Ryokan style bathhouse with eleven guest rooms in two main buildings. There are also six private guest residences. Kannawaen is by no means the largest of Japan’s bathhouses, as some of these are able to cater for up to 1,600 guests, but is regularly referred to as one of Japan’s most authentic. Kannawaen provides a traditional, and private experience, with decorative gardens, and a rare colour-changing outdoor bath. There are also indoor pools and an excellent assortment of traditional Japanese cuisine available to guests.
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victoria’s geothermal and natural mineral water tourism investment opportunities 6. International Development Examples
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USA The mineral waters of North America have been a point of much interest to scientific researchers since they were discovered in 1807. Much of today’s modern understanding of the chemical makeup of mineral waters, and their geological behaviour was derived from research undertaken from the springs of Saratoga, and their comparative qualities to the traditional European springs. Significant research was also undertaken to replicate this natural occurrence in a laboratory setting to develop a ‘make at home’ mineral water supplement.
The city of Saratoga is the focus point of much of North America’s geothermal water interest. Saratoga is 48 kilometres north of Albany, New York. At its peak in 1910, there were 163 springs and wells spread over an area of 1,000 acres. This land was fully acquired by the State of New York by 1912 who subsequently closed all but 19 springs in an attempt to preserve the resource from depletion. The Saratoga Springs area has the only active spouting geyser east of the Mississippi River in the United States. Two of the most visited springs today are Island Spouter and Orenda Spring, along Geyser Creek. Island Spouter, which sends a narrow plume of water 3–5 metres into the air, first emerged in the early 1900s.
Saratoga Springs
Crystal Spa is the second and newer of the two operational bath facilities in Saratoga. The Crystal Spa offers a wider range of treatments than the Lincoln and is aimed at a more exclusive market. The facility offers aromatherapy, sauna, private mineral baths, skin care treatments, waxing and beauty therapy, body wraps and exfoliation scrubs, and a variety of massages. Spa entry costs $21US.
South East Asia The South East Asian mineral spa market is relative young. The mineral spas of this region do not hold the same social or historical significance as those in other markets, and have been developed recently for their tourism potential. These mineral spas have good success despite the lack of cultural depth. They leverage off designs that have been strongly influenced by their own local culture to achieve annual visitation rates in excess of Australia’s leading facilities. The spas of this region have effectively adopted mineral spa culture and given it their own unique branding.
The mineral spa facilities of Thailand appear to be aimed at a more affluent market, offering a more luxurious experience compared with Vietnam. Generally facilities offer a large hot mineral water pool for communal use in association with accommodation, massages and other relaxation and beauty therapies. Both countries generally use geothermal water collected at temperatures ranging between 50–55°C, that have been cooled to bathing temperatures between 40–45°C.
Tao Gardens – Thailand
The Tao Gardens resort in Northern Thailand is a health and wellness centre situated at the foot of the Himalayan mountain range. The facility was opened in 1995 and is currently used as a health retreat and training centre. The facility offers a range of services, and treatments derived from a variety of techniques including Taoism, Tai, Ayurvedic Medicine, Chinese, and Western Holistic medicines and technologies. Mineral water treatments include underwater massage therapy, either in a public or private pool setting. Admission to Tao Gardens is charged on a weekly basis starting at $750AUD.
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victoria’s geothermal and natural mineral water tourism investment opportunities 6. International Development Examples
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New Zealand The Australian mineral spa market is currently led by the large facilities operating in New Zealand’s North and South Islands. The history of New Zealand’s mineral spas is not dissimilar to that of Australia’s, with mineral springs being discovered and facilities erected towards the end of the 19th century. Maori legend suggests that their knowledge of the spiritual significance of these waters predates this by some time. The New Zealand market has a good mix of private and publicly owned facilities that are generally family friendly with a fun park atmosphere.
Polynesia Spa
The Polynesian Spa, near Rotorua in the North Island is a good example of how privately owned spas are effectively operated in the region. Up until 1972 the site was a Government complex, at which time it was leased to the Polynesian Spa group. Since then the facility has been significantly modernised and developed into an attractive spa complex that attracts over 400,000 visitors annually. There are also a number of very successful privately owned facilities in New Zealand, such as the Taupo Hot Springs Spa, situated in a volcanic crater, which offers a holistic range of services capable of catering to a variety of requirements and budgets.
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victoria’s geothermal and natural mineral water tourism investment opportunities 6. International Development Examples
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Hanmer Springs Thermal Pools and Spa
Hanmer Springs is located approximately 90 minutes drive north-west of Christchurch. It is one of New Zealand’s oldest commercial mineral springs operations, being discovered in 1859 by European explorers. In the 1990s up to $3.3m was spent on upgrading the buildings, pools and gardens. Hanmer is owned and operated by Local Government. Hanmer has a large bathing capacity and offers visitors the choice of outdoor public mineral pools, sulphur pools, private baths, sauna and steam rooms, a freshwater heated pool, a family fun pool with two waterslides, a picnic area and a café restaurant. Hanmer also offers a full range of therapeutic beauty and massage services. General entry for an adult costs $12NZD.
Hanmer Springs is the primary tourist attraction of the region with 89% of visitors to the region also visiting the complex. The thermal pools and spas at Hanmer Springs are one of the premier spas in New Zealand, attracting more than 520,000 people in 2004 (24% were international visitors with substantial increases occurring within the past five years). The increasing popularity amongst tourists has lead to further development with the first stage of a $1.5 million expansion started in 2005 and include two new thermal pools, extension of the café and an upgrade of the bore.
In line with an increase in tourism numbers of 19% over the past five years, financial performance of the complex has also improved, with an increase in turnover of 90% and a 166% increase in pre-tax earnings. The facility is the second largest employer in the region with 24 full time and 29 part time employees. The facility has a significant impact on the local tourism industry, which consists of 40 accommodation providers with 2,400 beds as well as 22 restaurants and cafes (most have developed in response to tourism growth over the last 10–15 years).
Careful financial management and market research has provided the basis for successful planning and redevelopment. Profits are either re-invested into the operation as required or redirected for investment in other regional reserves. Around $400,000 was spent on parks and reserves last year. In addition, Hanmer Springs runs a community sponsorship program, donating $10,000 per year to schools, clubs, individuals and community groups.
Hanmer is a good example of how a single low capital development has the potential to make a large contribution to a local region.
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victoria’s geothermal and natural mineral water tourism investment opportunities 7. References
Further reading • Daylesford - Hepburn Springs Mineral Water Investigation, Geological Survey of Victoria Report, Laing A.C.M., 1977 • Geothermal Prospectivity of Onshore Victoria, Australia, Geoscience Victoria Energy Geoscience, J. Driscoll, 2006 • Geothermal Resources of Victoria, Department of Industry, Technology and Resources and the Victorian Solar Energy Council, R. King, A. Ford, D. Stanley, P. Kenley, and M. Cecil, 1987 • Geothermal Resources of Victoria, Sustainable Energy Authority Victoria, SKM, 2004 • Mineral and Spring Water Resource Protection Discussion Paper, Department of Natural Resources and Environment, A. Shugg, 1996 • Mineral and Thermal Groundwater Resources, A. Albu, D. Banks, and H. Nask, 1997 • Salons and Spas: (The Architecture of Beauty), Julie Sinclair Eakin, Rockport Publishers, 2005 • Spa and Health Club Design, Encarna Castillo and Ana G Carnizares, Te Neues Publishing Company, 2005 • Spa and Wellness Hotels, Cristina Montes, Te Neues Publishing Company, 2002 • Spa Business Strategies: A Plan for Success, Janet M D’Angelo, Milady, 2005 • The Spa Country, A Field Guide, Spa Publishing, E & M Wishart, 1990 • Wombat Mineral Water Management Guidelines, Department of Sustainability and Environment, SKM, 2004 • 100 Best Spas of the World, Bernard Burt and Pamela J Price, Globe Pequot; 2.00 edition, 2003
Footnotes
1 National Visitor Survey, Tourism Research Australia, year ending June 2004-2006.
2 International Visitor Survey, Tourism Research Australia, year ending June 2004-2006.
3 International and National Visitor Surveys, Tourism Research Australia, year ending June 2006.
4, 6, 8, 9, 10, 13 Holiday Tracking Survey, Roy Morgan Research, year ending June 2003-2006.
5, 7 National Visitor Survey, Tourism Research Australia, year ending June 2006.
11, 12, 14 Geelong Mineral Springs Bathhouse Feasibility, City of Greater Geelong, May 2006.
These segments are derived by Roy Morgan Research based on income, purchasing habits and intentions, credit card details and travel and 15 entertainment expenditure. International and National Visitor Surveys, Tourism Research Australia, year ending June 2006. The Otway Basin includes Melbourne, Peninsula, 16 Geelong and Western Sub-regions. International and National Visitor Surveys, Tourism Research Australia, year ending June 2006. The Gippsland Basin includes the Gippsland 17 and Lakes Sub-regions. International and National Visitor Surveys, Tourism Research Australia, year ending June 2006. The Murray Basin includes the Mallee and 18 Central Murray Sub-regions. International and National Visitor Surveys, Tourism Research Australia, year ending June 2006. Central Victoria includes the Macedon and 19 Spa Country Sub-regions. International and National Visitor Surveys, Tourism Research Australia, year ending June 2006. The Geelong and Clifton Springs region includes 20 the Geelong Sub-region.
Maps and figures 1, 6, 7, 8, 9 SKM 2 Peninsula Hot Springs 3, 4, 5 Tourism Victoria 10 Victorian Mineral Water Committee
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victoria’s geothermal and natural mineral water tourism investment opportunities 7. References
Continued
Key organisations
Australian Bottled Water Institute Environmental Protection Authority Tourism Alliance Victoria Suite 4, Level 1, 6-8 Crewe Place, Herald & Weekly Times Tower Level 3, 114 Flinders Street Rosebery NSW 2018 40 City Road Melbourne, VIC 3000 Phone: 02 9662 4822 Southbank VIC 3006 Phone: 03 9650 8399 Facsimile: 02 9662 2899 Phone: 03 9695 2722 Facsimile: 03 9650 8543 Email: [email protected] Facsimile: 03 9695 2785 Email: [email protected] Web: www.bottledwater.org.au Web: www.epa.vic.gov.au Web: www.tourismalliance.com.au
Australian Bureau of Statistics Goulburn-Murray Water Tourism Australia GPO Box 2796Y 40 Casey Street Level 4, 80 William Street Melbourne VIC 3001 Tatura, VIC 3616 East Sydney Phone: 1300 135 070 Phone: (03) 5833 5500 GPO Box 2721 Facsimile: 1300 135 211 Facsimile: (03) 5833 5501 Sydney NSW 2001 Email: [email protected] Email: [email protected] Phone: 02 9360 1111 Web: www.abs.gov.au Web: www.g-mwater.com.au Facsimile: 02 9361 1388 Email: [email protected] Australian Drilling Industry Association International Association of Hydrogeologists Web: www.tourism.australia.com Suites 6 & 7, 85 Bardia Avenue, The Atrium, 168 St Georges Tce Seaford VIC 3198 Perth WA 6000 Tourism Research Australia Phone: 03 9770 4000 Phone: 08 6364 6895 PO Box 1110 Facsimile: 03 9770 4030 Facsimile: 08 6364 6525 Belconnen ACT 2616 Email: [email protected] Email: [email protected] Phone: 02 6228 6100 Web: www.iah.org.au Facsimile: 02 6228 6180 Australian Market & Social Research Society Web: www.tra.australia.com Level 1, 3 Queen Street Murray Darling Basin Commission Glebe NSW 2037 Phone: 02 6279 0434 Tourism Victoria Phone: 02 9566 3100 Web: www.mdbc.gov.au GPO Box 2219T Facsimile: 02 9571 5944 Email: [email protected] Melbourne VIC 3001 Email: [email protected] Phone: 03 9653 9777 Web: www.mrsa.com.au Southern Rural Water Facsimile: 03 9653 9722 88 Johnson Street Web: www.tourismvictoria.com.au Australasian Spa Association Maffra VIC 3860 PO Box 267 Phone: 03 5139 3100 Victorian Groundwater Database Nichols Point VIC 3501 Facsimile: 03 5139 3150 (www.dse.vic.gov.au/waterdata) Phone: 03 5024 6519 Email: [email protected] Facsimile: 03 8648 5626 Web: www.srw.com.au Victorian Mineral Water Committee Email: [email protected] PO Box 1067 Web: www.australasianspaassociation.com Sunraysia Rural Water Authority Bakery Hill VIC 3354 741-759 Fourteenth St Phone: 03 5333 7770 City of Greater Geelong Mildura, VIC 3500 Facsimile: 03 5333 7717 PO Box 104 Phone: 03 5051 3400 Email: [email protected] Geelong, VIC 3220 Facsimile: 03 5051 3480 Web: www.mineralwater.vic.gov.au Phone: (03) 5227 0857 Email: [email protected] Facsimile: (03) 5227 0860 Web: www.srwa.org.au Email: [email protected] Web: www.geelongaustralia.com.au Sustainability Victoria Level 28, 50 Lonsdale St Department of Primary Industries Melbourne 3000 Phone: 136 186 Phone: 03 8626 8700 Email: [email protected] Facsimile: 03 9663 1007 Web: www.dpi.vic.gov.au Web: www.sustainability.vic.gov.au
Department of Sustainability & Environment 80 Collins Street Melbourne VIC 3000 DSE Customer Service Centre Phone: 13 61 86 Email: [email protected] Web: www.dse.vic.gov.au
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victoria’s geothermal and natural mineral water tourism investment opportunities 8. terms and definitions
Aquifer: a geological structure or formation permeated or capable of being permeated permanently or intermittently with water.
Artesian: is a confined aquifer containing groundwater that will flow out of a well without the need for pumping.
Balneotherapy: is the treatment of diseases, injuries, and other physical ailments by bathing in and drinking of natural mineral waters.
Geothermal water: is water heated by the natural heat of the Earth.
Groundwater: any water occurring in or obtained from an aquifer.
Hydrotherapy: is the treatment of physical disability, injury, or illness by immersion of all or part of the body in water to facilitate movement, promote wound healing, and relieve pain that is administered under the supervision of a trained therapist.
Mineral spring: a point where natural mineral water flows out of the ground.
Mineral spring reserve: a natural mineral spring reserve is a portion of land, containing a mineral spring, which is gazetted as a special Crown Land Reserve. These areas are managed by local government, Parks Victoria or the Department of Sustainability and Environment (DSE).
Mineral water: as defined by the Water Act, is groundwater in its natural state containing carbon dioxide and other soluble matter in sufficient concentration to cause effervescence or impart a distinctive taste. Alternative definitions may apply in other countries.
Spa visitor: is any person who visited a health resort or went on a spa holiday on their last trip for one or more nights within Australia.
Sub-regions: are nationally agreed definitions of Statistical Local Area (SLA) boundaries.
Henty Park bore wellhead, Portland Water circulation pumps. Courtesy Stephen Read, Geoscience Australia
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victoria’s geothermal and natural mineral water tourism investment opportunities appendix a. statutory considerations
The extraction and use of groundwater resources in Victoria is controlled by legislation enacted by the State Government, (the Water Act (1989). The use of geothermal and mineral waters for commercial bathing and drinking purposes falls under this legislation. Recently enacted geothermal legislation, the Geothermal Resources Act (2005), is aimed at encouraging major energy investment projects (it does not apply to projects where the temperature is less than 70°C or the depth of drilling (extraction) is less than one kilometre below the earth’s surface). It therefore does not apply to most tourism ventures.
Groundwater management The licensing and administration of the groundwater resources is the responsibility of Victoria’s four Rural Water Authorities (RWA); Goulburn Murray Water, Southern Rural Water, Grampians Wimmera Mallee Water and Lower Murray Water. To assist in the administration of groundwater licenses, the RWAs have defined a number of Groundwater Management Areas (GMA). Each GMA has a prescribed Permissible Consumptive Volume (PCV) which is considered to represent the sustainable yield of the aquifer. License applications are considered in light of the PCV and current levels of allocation to assess whether a new license application can be sustained by the aquifer. In GMA where the demand for groundwater is substantial in comparison to the PCV, a Water Supply Protection Area can be declared by the Minister and a Water Management Plan prepared to help manage the resource.
If the proposed development falls within an existing GMA then a new groundwater extraction license will be issued on the provision that the allocation remains within the prescribed PCV. In some locations groundwater resources are already fully allocated and water entitlements may need to be traded or reallocated from existing license holders (if allowable). The current status of the various GMA (i.e. current levels of allocation in relation to the PCV) can be obtained from the Department of Sustainability and Environment website.
Natural mineral water resources are an exception to these arrangements. These reserves are separately managed by the Victorian Mineral Water Committee (VMWC). The VMWC was formed in 1992 to advise and support the development of the State’s mineral spring reserves, and to encourage the commercial development of natural mineral water and the therapeutic use of mineral water. The VMWC is currently funded by the Victorian Government and a mineral water levy is collected.
The relevant licensing authorities are summarised as follows:
Relevant licensing authorities
Resource Basin/Region Licensing Authority Geothermal Gippsland Southern Rural Water Otway Southern Rural Water Murray Goulburn Murray Water, Grampians Wimmera Mallee Water, Lower Murray Water Mineral Water Southern Rural Water, Goulburn Murray Water
Bore construction and groundwater extraction license Obtaining the relevant permits and approvals from government authorities is a key step. The following section will provide a description of the general processes required to obtain planning approval and a bore construction license.
1. Prepare and Submit the Bore Construction Licence (BCL) Application: The applicant must contact the relevant RWA, complete the BCL application form and pay an application fee. This application will include details of the proposed bore design and depth, bore use, location and the estimated annual extraction volume in mega litres (ML) and proposed extraction rates (ML/day).
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victoria’s geothermal and natural mineral water tourism investment opportunities apendix a. Statutory Considerations
Continued
2. RWA Review: The RWA will consider the application in the context of existing GMA and their PCV and may request a hydrogeological assessment to investigate the potential impacts of the proposed extraction on neighbouring groundwater users, surface water features and nearby GMA. 3. Application Advertised: If required the application may be advertised in order to notify adjacent property owners via public notices (e.g. newspaper). People affected may object. The application may also be referred to other relevant authorities including the Department of Sustainability and Environment, the GMA and local governments, etc.
4. RWA Assesses and Determines Application: The RWA will consider objections and can conduct a community meeting, if needed. The authority will also consider any comments from the referral agencies and, if necessary, negotiate any aspects of the application further with the applicant. Following the process the RWA will make a decision to issue or reject the license application. If accepted there will be a number of conditions which the applicant must adhere to (i.e. metering, pumping periods, etc). Appeals are dealt with by the Victorian Civil and Administrative Tribunal (VCAT).
5. Review by VCAT (if necessary): Challenges from the applicant or third parties to the RWA decision in relation to the license and its conditions are made through an appeal to VCAT that must be made within 28 days of the date of determination. If no appeals are made within the 28 days period, the RWA will issue the: • Bore construction license (to drill the bore), and; • Groundwater extraction license (issued following the receipt of a hydrogeological assessment based on the results of drilling and testing of the bore). The extraction volume may be modified at this stage depending on the actual yields of the completed bore recorded by the driller or from a pumping test.
Fees A range of fees and charges apply for groundwater licenses and ongoing water use.
Application Fees: Each RWA has a different cost structure and the proponent should confirm these fees at the time of application. Costs can vary according to the location of the bore, and nature of the site. As an example, based on the Southern Rural Water 2005/06 fee structure, an application for a 400 ML bore would cost in the order of $6,000 (this assumes a hydrogeological assessment report and advertising is required). This does not include other costs such as fees for consultants to prepare a hydrogeological assessment report that will be required for a license application.
Annual Water Charge: Charges vary between each of the RWA. As an example, Southern Rural Water has an annual fee of $200 per bore license and annual charge of $2.25 per ML of licensed volume.
Mineral Water Surcharge: A natural mineral water surcharge applies for commercial use of natural mineral water, the mineral water levy is currently 1.5c per litre, i.e. $15,000 per ML.
Groundwater Trading: Groundwater trading is a relatively new concept and is determined by market demand, location, and whether the transfer is temporary or permanent. As a guide, purchase costs can vary from $200 to $1,000 per ML.
Above ground consent
Planning approval for development A development will require planning approval from the relevant local government authority. The following section provides general information on the planning process to gain approvals for a spa development. Further information on development considerations for a new tourism proposal (including town planning, business planning and design) can be found in Tourism Victoria’s Your Guide to Tourism Investment in Victoria.
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victoria’s geothermal and natural mineral water tourism investment opportunities appendix b. planning and design
Bore Installation and Yield Testing Once a BCL license has been obtained from a RWA, a bore can be installed and the sustainable bore yield assessed. The drilling and construction of bores must be undertaken by a licensed drilling contractor. The VMWC can assist in providing information about suitably qualified drilling contractors. If a hydrogeological consultant is engaged then they may also be able to recommend suitable drilling contractors.
For more complex drilling, such as for deep geothermal bores, the drilling costs are high i.e. hundreds of thousands of dollars. As an indicative guide a 500m bore is likely to cost between $210,000 – $375,000, a 1,000m $390,000 – $700,000, and a 1,500m $525,000 – $975,000. It is wise to prepare a detailed specification, obtain quotes from a number of drilling contractors, and have a contract in place to ensure agreed costs and liability.
Hydrogeological consultants can be engaged to assist with management of the bore installation process, particularly for deeper and more complex bores. These services would cover:
• Completion of specification and contract documents. • Assessment of contract tender documents based on set criteria. • Onsite supervision of drilling, sediment and groundwater sampling to assess bore potential. • Assistance with production bore design, such as finalisation of screen depths, bore diameter, screen aperture. (A correctly designed production bore will maximise groundwater yields and temperature, and minimise pumping costs over the long term). • Onsite supervision to ensure the bore is constructed as per its specification and the screens are placed in the required position. Planning and Design Issues There are a number of issues that should be addressed in consultation with the relevant local government authority. Some may be of a minor technical nature others may be central to the success of the development. Local government support and commitment to spa tourism may be a key factor in the project’s success and it is recommended that you liaise with councillors and staff when ever necessary, especially in the early stage, to resolve any issues.
Groundwater Treatment and Disposal The groundwater pumped from the bore may need some form of treatment to ensure it is clear and clean for public use. Treatment to the water from the bore may include sand filtration to remove any sediment or settling tanks to remove iron precipitate. Ozone or UV treatment will remove any micro bacterial forms from the bore, and chlorination may be required in the facility. Provision for these types of treatment should be made in the design, based on the groundwater quality analysis.
Depending on the groundwater quality and the development location, disposal of the groundwater following use may be an issue. If the site is sewered a trade waste agreement with the relevant authority should be sought and may be granted. However, the developer must liaise with the local authority, as in some cases the wastewater from the site may not be accepted due to the salinity, flow rates or temperature. The limitation may be the size and current capacity of the regional treatment plant.
Other alternatives that may need to be investigated include a package treatment plant, re-injection of the groundwater back into the aquifer system or re-use of the water (i.e. irrigation, wetlands, aquiculture, etc). Each alternative would require permission from the relevant licensing authority.
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victoria’s geothermal and natural mineral water tourism investment opportunities