Asia: The Future of Global Wellness ASIA: THE FUTURE OF GLOBAL WELLNESS TOURISM

According to the latest Global Wellness Institute (GWI) report, wellness tourism is one of the fastest-growing segments in the wellness economy today. Wellness trips now represent 6.5% of all tourism trips taken worldwide, growing a whopping 15.3% annually from 2015- 2017 to reach 830 million trips each year. In the midst of this explosive growth, Asia-Pacific now ranks second – at 258 million wellness trips annually -- just behind Europe. Wellness has become a dominant consumer value and lifestyle driver, and this is profoundly changing behaviour, choices and spending decisions. Asia-Pacific is also the the trip and for choosing 33% more while domestic fastest-growing wellness a destination. They will be wellness travellers spend tourism market: Wellness drawn to a destination about 120% more. trips jumped 33% in the for its detox programme or last two years (China, India, retreat. The Secondary Malaysia, the Philippines, Wellness Travellers are Vietnam and Indonesia those who go on a trip for a Why Asia? all clocked 20+% annual purpose other than wellness, Why now? gains) and the market will but they’re interested in essentially double from maintaining wellness when The stats are overwhelming: 2017–2022: from US$137 they . For example, According to a World billion to US$252 billion. a business traveller who Asia’s Soft Power Tourism Organization deliberately choses a In short, Asia is driving the (UNWTO) report, outbound that offers healthy food and Not only is Asia dominating global wellness tourism Asia-Pacific travellers now a good gym and will try to in inbound and outbound market. represent 37% of the world’s squeeze in a massage. These statistics, its “soft power” total with international two segments – primary and impact on the global travel spending doubling secondary – can be the same wellness stage cannot be in the last decade (APAC). person taking different types overstated. Asian traditions Add China to these figures: of trips at different times. and healing philosophies Outbound trips grew – from yoga, 20-fold since 2000; the It’s no surprise then that a to traditional Chinese Chinese are the world’s bulk of wellness tourism falls medicine’s concept of biggest travel spenders The “Wellness into the secondary wellness balance and energy – have (US$258 billion annually, Traveller” category. In fact, for every influenced virtually every well ahead of the US at single primary wellness trip aspect of the wellness US$135 billion); Chinese In its recent report, GWI’s taken in Asia, there are 13 industry for several decades travellers will represent 30% valuation of wellness tourism more secondary wellness today. Review any spa menu of the entire international takes into account two types trips. or retreat package in the travel market by 2030; and of wellness travellers: the Wellness travellers also world and you will inevitably China has been pegged to Primary and Secondary spend much more than find Asia’s influence. become the world’s No.1 Wellness Travellers. For the average tourist. In travel destination by 2030, the former group, wellness Asia-Pacific, international dethroning France. is the main purpose for wellness travellers spend Wellness Tourist Archetypes To understand this fast-growing market, we conducted over 50 one-on-one interviews with travellers, luxury tour operators, spa consultants, travel journalists, wellness destination and hospitality brands who are based in Asia Pacific to arrive at three main consumer archetypes who will be driving the future of wellness tourism in Asia.

FEMALE TRAVELLERS

They were going on juice fasts and yoga weekends in their ’20s, moved on to integrated health retreats and are now challenging themselves in solo travel. Women – travelling with other women or alone – are a force unto themselves and will become the most important market segment driving the wellness tourism boom worldwide. When it comes to wellness tourism, the future is indeed female. Although not exactly new, women-only have soared in popularity in the last decade, with some tour companies reporting over 200% growth in the last few years alone. In Bali, many women-only retreats have popped up in recent years. In Nepal, special tours for women-only treks are on the rise. Women in China, Hong Kong, Singapore, Philippines, Korea and Japan are making girlfriend getaways a regular part of their lifestyles, where wellness activities are at the heart of the experience. What’s Driving This Female-Centric Boom?

Wealth = Wellness Best Life Cycle The New Luxury It’s all about the Guru! Women’s spending power Investment When it comes to wellness, While state-of-the-art spas, is surging: From 2013- As a market segment, luxury has less to do with luxurious accommodations, 2023, the global incomes female travellers present the conventional trappings and breath-taking locations of women will grow from the highest customer of indulgence and more are all important to luxury US$13 trillion to US$18 lifetime value because to do with the ephemeral travellers, it comes down trillion in travel, and that they engage in wellness quality of an experience. to one undeniable fact: it’s US$5 trillion represents travel the longest. Because Women who’ll turn their the guru that matters the more than twice the women are more social by nose up at anything less most. Increasingly, wellness expected growth in GDP nature, women-only trips than 500 thread-count retreats are built around the from both China and often start in their early ‘20s sheets, suddenly won’t mind cult following of fitness and India. With the women’s and continue for the rest sleeping in yurts under the yoga celebrity instructors empowerment movement, of their lives. They travel to stars if it means a completely and life coaches. marriage and fertility rates escape, rekindle friendships, life-transforming experience. are declining in many of celebrate milestones, and Austerity is equated with Asia’s developed countries. reward themselves. authenticity. Instead, women are investing in their own personal and professional growth and wealth portfolio. Solo-ish Walk on the Wild Side Eat, Play, Create More women are putting Women are increasingly Yes, “experiences” matter What Women Want solo trips on their bucket walking (and talking) their but it’s “transformation” According to list. Solo, but in the company way to wellness. There’s that’s the holy grail. Women Compare Retreats’ of others. With safety an been a boom in women’s- who feel they’ve had to 2018 survey: overriding concern, female only walking clubs in defer self-care and personal Top destinations: solo travellers are finding Australia and tours like interests are now drawn Bali safe haven in healing Walk Japan as well as to retreats that promise Maldives resorts like Kamalaya in self-imposed hiking trail creative awakenings Thailand Koh Samui, where 65% of challenges. and self-improvement. Philippines guests are solo travellers, of Unleashing one’s creative Sri Lanka which 65% are female. All- $SS goddess – whether through Most Important retreat features: inclusive health resorts like Let’s face it, for many Asian photography, writing, art, Six Senses, Vana in northern women, the winning trifecta cooking – has become Yoga & Meditation classes 63% India, and Como Shambala for a girlfriend getaway is essential to well-being. in Bali, give solo guests the still shopping, sightseeing Many come away from these Detox programmes 50% best of all worlds – a mix of and spas, with “retail journeys so transformed Private nutrition solitude, social interaction therapy” as the primary that they abandon their consultation 43% and safety. driver for travelling. professions to pursue an Medical check-ups 31% alternative path in…well, and tour packages that make Sleep therapies 34% Body, Mind & Ovaries wellness. an extra effort-- whether in Personal trainer While yoga and detox are providing adjoining rooms, sessions 31% mainstays, new programs shopping sherpas and Cooking classes 34% like The Farm at San Benito’s exclusive access to special Adventure sports 35% “Female Revitalization” outlets or ‘therapists on is tackling hormonal demand’ – can expect a Cultural 32% imbalance and cellular aging. loyal following. In terms of Women would Mental health is also on the destinations, Tokyo, Seoul rather travel with rise, according to a Compare and Bangkok’s popular female friends 33% Retreats survey that cited shopping havens have Solo 20% this as the most important become de rigueur for three- 45% women surveyed priority for women (see night/four-day getaways for go on a wellness retreat sidebar). women. once a year.

AFFLUENT NEW AGERS

Consider this: Hong Kong and Japan have the highest life expectancies according to the World Economic Forum. The United States didn’t even make it to the top 30. And according to Wealth-X, a global ultra-high network intelligence company, the fastest growth in wealth creation is in Asia, which posted an increase of ultra-wealth (defined as individuals with a net worth of US$30 million or more) of 27% in 2018 and is forecast to have the strongest growth by 2022. Hong Kong has also overtaken New York to become the world’s largest ultra-high net worth city. What does this mean? There’s never been a better time to grow old in Asia. With the combined factors of longer life expectancy and having the means to pursue wellness at a younger age, Asians who are approaching mid-life are recontextualising aging as aspirational. They’re not postponing living well after retirement, but are embracing a life-well-lived mindset in their ‘40s because they can afford it. These Affluent New Agers are younger and changing the notion of age from a chronological construct to biological and mental mindset – “65 is the new 45.” They want to achieve and maintain quality of not only life but lifestyle. Who are these agree that this segment activity such as hiking and is now more adventurous trekking. So much so that Affluent New in location choices and Scott Dunn have designed a Agers? towards self-care activities. number of ‘Gourmet Hiking” At Lightfoot Travel, Affluent tours to destinations such Based on our interviews, New Agers are spending as Slovenia, the Spanish Another area of enormous potential is the LGBTQ+ they are Instagram or upwards of US$200,000 Pyrenees, Provence and the segment of Affluent New Wechat (if they are Chinese) per trip and there’s been an Kumano Kodo Trail in Japan. Agers. Acceptance for addicts, pursue wellness increase year on year of 20% LGBTQ+ travellers have “We see a lot of enquiries been growing in Asia with for self-care and improving where the emphasis of recent changes in legislation health and are travel experts. They live very ‘adventure’ is on the in India, Australia, Thailand They live very differently and Taiwan. Hong Kong destination itself, such as from previous generations differently is also hosting the 2022 Central Asia, Bhutan or Gay Games for the first and consider ‘middle age’ as Israel,” says Theng Hwee time. According to a 2018 the prime of their lives. It is from previous Chang, CEO of Scott Dunn report by LGBT Capital, the period when they have the estimated LGBTQ+ Asia, where 70% of their the resources and time to generations purchasing power per annum Asian market comprises for Asia is US$1.3 trillion. take on new adventures and and consider silver set travellers. And Affluent New Agers are explore the world. They are less likely to have children willing to spend on travel ‘middle age’ as and would have a higher and wellness with the goal disposable income to pursue luxury travel. The tourism of indulging in bucket-list the prime of market is taking note with activities while they can. the UNWTO commissioning That is not to say that they their lives. a global report on LGBTQ+ Tourism. The Tourism are not value conscious. in these bucket list activities. Authority of Thailand also When pursuing luxury A typical itinerary? Hop on launch #GoThaiBeFree in travel, these Affluent New a helicopter and fly around Jan 2019 to target these Agers are more demanding travellers. Why? Tourism Everest before enjoying revenue from the LGBTQ+ in ensuring they get the breakfast at 14,000 ft. Walk community contributes very best for their money, up an appetite by hiking 1.15% to Thailand’s economy, the highest in the countries from accommodations to to see gorillas in Rwanda. exclusivity of experiences. or regions surveyed by LGBT Affluent New Agers’ idea Capital, followed closely by We spoke to several luxury of wellness isn’t just spa Hong Kong at 1.11%. tour operators and they treatments but physical On the flip side of lengthening lifespans: Affluent New Agers have also become one of the key B drivers of H A D C D and Asian countries are also F A G E top destinations (see map). B G C They are going overseas for H medical treatments from J E health check-ups, dental F work to cosmetic surgery. The reasons are multi- fold; receiving premium medical expertise at a lower cost; convenience of avoiding waitlists as well as geographic proximity to these countries. This I aligns with the latest data from Market Data Forecast that stated the Asia-Pacific Medical Tourism Market Top “Bucket List” Destinations* Medical Tourism Hotspots and Popular Treatments* was worth US$7.79 billion A. Uzbekistan in 2018 and estimated to be B. Kazakhstan A. China E. Malaysia growing at a CAGR of 22.4%, C. Turkmenistan Acupuncture, Cupping, Tuina End-to-End Solutions and to reach US$19.87 billion D. Kyrgyzstan Massage, and Herbal Medicine Fertility B. Hong Kong F. Singapore by 2023. E. Egypt F. Israel Fertility Oncology, Neurology, G. Jordan C. India Cardiology, and Stem Cell H. Camino de Santiago Cardiac, Transplants, Therapy I. Antarctica Orthopaedics, Cosmetic, and G. Taiwan J. Africa Cancer Cardiac and Orthopedic *Sources: Luxury tour operators, interview responses D. Korea H. Thailand Cosmetic End-to-End Solutions *Sources: International Medical Travel Journal, interview responses, Medical Tourism Magazine

conscious behaviours that were once associated with the CHINESE MILLENNIAL older generations are now embraced by millennials. MILLIONAIRES The growing importance of health in the lives of Chinese millennials is reflected in wellness tourism. To them, wellness has taken a broader and deeper meaning that goes beyond It is difficult to overstate the sheer force of this market physical fitness and pampering spa treatments. Mental segment given that China’s outbound travel market is health is a high priority, so is intellectual and social wellness, expected to swell to over 400 million by 2030. As the middle which are expressed through challenging oneself, developing class grows and incomes rise, producing more millionaires self-confidence and empathy or making positive changes to and billionaires at an exponential rate, so too does their become a “better me”. appetite for travel and wellness experiences. This market is an important one for everyone in tourism. To practitioners Through our research and in-depth interviews with millennial in luxury travel, the most prized catch are the millennial millionaires in China, we have identified five aspirations millionaires. among China’s young and affluent class, as well as insights in their ideal of wellness travel – Chinese millennials are generally stereotyped as “Buddhist minded” (佛系fo xi) for their laissez-faire approach to life and obsession with health and wellness. Yet they are also known for their “punk wellness” (朋克养生peng ke yang sheng) practices, remedying the effects of their health- compromising lifestyle with (mostly skin-deep) body- nourishing rituals. This is seen when they add cancer-fighting goji berries to beer or having reflexology after partying all night. Their efforts to stay healthy while leading an unhealthy lifestyle is a reflection of this generation’s live-for-the- moment, yet pragmatic, attitude and it also underscores the fact that wellness is the new status symbol among the 400-million-strong Chinese millennials. A recent survey by China Youth Daily showed that 80% of the 1,800 millennials interviewed from first to fourth-tier cities place personal health in high priority, while London-based lifestyle concierge service Quintessentially has also seen an unprecedented interest amongst their Chinese members in striking a balance between wellness and health. Health- 1 2 3 Aspiration - Fulfilment, Aspiration - Escape, moment Aspiration - Find meaning and a sense of achievement, of peace, restoration purpose in life, transformation self-improvement Pursuits - Weekend anti- Pursuits - Retreats for spiritual Pursuits - Adventure, sports, stress getaways for rest and pursuit and self-realisation educational courses relaxation, all-inclusive resort With soaring national pride, Wellness travel means stepping experience in a hidden location more affluent millennials now out of a comfort zone and With increasing life stresses, take a keen interest in returning pushing boundaries. It is urban pollution, information to their roots, prompting a perceived as a life-enriching overload, and changing growing demand for traditional experience. They seek out perceptions on relationship and arts, cultural practices and destinations not for the types of marriage, the younger Chinese philosophy in a bid to relieve experiences they can gain, but population seek isolation to stress and achieve emotional for new knowledge or skills they unplug and detox. They are wellness. Temple getaways have can learn, new challenges they always ready to go on mini been attracting an increasing can take on. This means holidays vacations that are convenient number of pilgrims, who seek a in which they can explore new to plan in a secluded resort, as short stay to cleanse their mind, cultures, engage in adventure frequent as every two months. body and soul by consuming sports, such as rock climbing Ultimate luxury is time spent vegetarian food, performing and skydiving, immerse in the in solitude and the joy of doing meditation, practicing the wonders of wildlife, and sign up things for themselves. However, ancient art of calligraphy (a for a healthy cooking class or since social media-addicted form of meditation in Buddhist mindful living workshop. users have difficulty removing culture) and engaging in themselves from their mobile philosophical exchanges with devices, digital detoxes are not spiritual gurus. high on their list. Hassle-free, all-inclusive packages that cover accommodation, meals, activities and treatments are preferred. Environmentally- friendly resorts with dual emphasis on sustainability and wellness are also a big draw. 4 5 Aspiration - Making the most Aspiration - Discovery and out of life and time authenticity Pursuits - Action-packed Pursuits - Off-the-beaten- itineraries with variety track destinations, local and diversity immersions It is no secret that high-end Keen to detach from the daily Chinese travellers never take grind of living in crowded, single-purpose trips. The same polluted and stressful cities, the applies to wellness travel. A Chinese millennial millionaires full, action-packed itinerary are going to places they have with a variety of activities never been. Although they love requiring different energy the Maldives and Bali, the lesser- levels is appealing. Instead of a known islands in the Philippines, purist approach, it is sometimes Sri Lanka and small, mountain done in the classic “wellness villages in Japan are capturing punk” style – a yoga retreat their hearts. Since they want itinerary that also includes to be the insiders and know outdoor adventure, sight- the best local addresses, social seeing, shopping, fine dining media recommendations from and a beach party. Why? It friends and digital media play is important for them to be an important role in helping perceived as “interesting” rather them curate personalised and than wealthy and prosperous. authentic experiences. They are on a constant quest for new ideas and inspiration. This report is a result of over 50 one-on-one interviews conducted with seasoned luxury travellers, tour operators, spa consultants, travel journalists, wellness destination resorts and hospitality brands.

We’d like to thank 500 Million Stars, Compare Retreats, Flight Centre, Global Wellness Institute, Gwinganna Lifestyle Retreat, Kamalaya, Lightfoot Travel, Mandarin Oriental Hotel Group, Pure Converts, Scott Dunn Asia, Six Senses Hotels Resorts, SPS Travel, The Farm at San Benito, World Travellers and Ye Travel. About ILTM ILTM is a global collection of invitation-only events that bring together leading international buyers to meet and discover the most luxurious travel experiences. Each event introduces an unrivalled selection of luxury travel brands to ILTM’s extensive network of hand-picked luxury travel advisors, through bespoke appointment programmes and networking sessions. Alongside the global flagship events in Cannes and Asia Pacific, ILTM has four core local events; ILTM Arabia, ILTM China, ILTM Latin America and ILTM North America, as well as one specialist event; ILTM Africa. www.iltm.com

About CatchOn – A Finn Partners Company Since 2001, CatchOn has distinguished itself for its expertise in brand development, marketing communications and PR. Our team of specialists work collaboratively with wellness, travel and hospitality clients to accelerate growth, encourage innovation and create compelling stories and customer experiences. With offices in Hong Kong and Shanghai, we’ve helped numerous international brands with their market entry strategies into China and the Asia region. In 2019, we joined Finn Partners, one of the world’s fastest growing independent marketing and communications firms, to form one of the world’s most formidable global travel practices. www.catchonco.com