Victoria's Spa and Wellness Tourism Action Plan 2005-2010

Opportunities and challenges

As a part of the development of Victoria's Spa and Wellness Tourism Action plan 2005-2010, the following opportunities and challenges were identified.

Opportunities

  • at present no Australian state owns the positioning of'spa and wellness destination'
  • spa and wellness is a key product strength for Melbourne and the Melbourne surrounds regions
  • Victoria has both natural mineral springs and geothermal waters, which is a key point of difference
  • Daylesford/Hepburn Springs is well positioned to be the core destination in Australia for an authentic, natural, holistic experience
  • development of the forthcoming Daylesford/Hepburn Springs national marketing campaign represents an opportunity to profile spa and wellness experiences
  • many of Victoria's spa destinations are within 90 minutes' drive of Melbourne
  • development of facilities associated with geothermal waters and mineral springs, such as the Geelong Mineral Springs Bathhouse
  • an extensive range of health therapies and health therapists exists
  • spa experiences complement the existing Melbourne positioning
  • spa and wellness products have great synergy with Victoria's other key products strengths such as food and wine, shopping, arts, theatre, cultural heritage and nature-based tourism
  • strong industry leadership exists via Australasian Spa Association and considerable industry cooperation/cohesion
  • with consumer awareness of Victorian spa and wellness product currently low, a campaign to raise the level of awareness of spa and wellness product available will assist in further developing this segment
  • a number of Victorian spa retreats are using local and indigenous products in treatments
  • new investment guidelines for geothermal waters and mineral springs resources could accelerate investment in wellness retreats
  • production of quality spa and wellness information - both printed and online
  • major hotels have spa businesses and could participate in cooperative marketing activities
  • development of packaged product for travel trade
  • potential exists in utilising bottled local mineral water to promote the Daylesford/Hepburn Springs region as a spa destination.

Challenges

  • low consumer awareness of product and destinations offering spa/wellness product experiences
  • lack of positioning of Victoria as a spa/wellness destination
  • need for new product development
  • lack of'commissionable' product for travel trade
  • high cost of reaching geothermal sources underground
  • purity and sustainability of water sources
  • competition from Asian destinations, where service costs are lower
  • inability of existing infrastructure to cater for larger groups
  • Victoria lacks a point of difference as a spa and wellness destination for international visitors
  • sourcing financial resources to market the segment
  • no collateral, product directory or online portal to promote the segment
  • staffing issues, including skills shortage, high staff turnover and salary rates structure
  • variable quality and absence of a spa industry rating system
  • variable industry training and excellence in delivering a professional service to consumers.