SPA INDUSTRY
Asian customers scared away
Local operations take a hit as foreigners avoid political crisis
The Federation of Thai Spas (FTS) yesterday said the local spa market had suffered a 15-per-cent drop in customers in the first quarter after political tensions scared Asian travellers away from the country.Many spa-product manufacturers have been forced to expand abroad, to reduce dependence on the local market, according to Paiboon Pilun-owad, chairman of the FTS. The problem is also compounded by an oversupply of spas in Thailand. The local industry was worth Bt8 billion last year, according to the association, and the spa products market was worth Bt20 billion. The industry comprises 200 small producers and 20 major manufacturers. There are 971 spa centres operating in the Kingdom. About 80 per cent of spa users are foreigners, with domestic clients forming just 20 per cent of the market, said Paiboon. A drop in tourist arrivals from other Asian countries had made a big dent in the spa centres and products industry. "Many Asian travellers, particularly those from Singapore and China, cancelled trips to Thailand in the first quarter of this year," said Paiboon. Anti-Thaksin protesters had singled out Singaporean companies in reaction to the purchase of Shin Corp by that country's state-linked investment arm, Temasek Holdings. Paiboon is also president of Aroma Vera Co Ltd, which manufactures spa products. He said demand for spa products in the first quarter of the year plunged 15 per cent from the same period last year. The main customers for spa products come from China, Hong Kong, Taiwan, the Philippines, Malaysia, Vietnam and the Middle East. He said the industry still expected to grow 20 per cent this year, now that the political climate had improved. Also, the trend for health products should continue to draw more Asians to receive treatments here. "Aroma Vera exports 65 per cent of our products to foreign markets, mainly Japan, Europe and the US," said Paiboon. The firm also provides spa management and consulting services to Patana Sport Club in Sri Racha, Anand Line Sport Club on Kaset-Navamintra Road and the Mercure Fortune Hotel at the Rama IX Intersection. The firm plans to manage a Bt2-billion resort hotel and rejuvenation centre in Rayong that is owned by the Samart Telecom Group. It has also opened its Blance spa centres and shops in Vienna, Berlin, Rome, Milan and Dusseldorf. Blance already operates in Poland, Kazakhstan and Japan. Kwanchai RungfapaisarnThe Nation
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