Singapore, 9th July 2007 – Intelligent Spas found spa numbers in Indonesia and Bali have grown over 160% since 2003, identifying 390 spas currently operating and another 21 spas under development. The report, entitled Spa Industry Profile Indonesia 2003-2009 is available in both English and Bahasa Indonesia and features over 700 quantitative statistics on the Indonesian spa market as well as supporting qualitative trends and observations from spa owners and managers. The survey of spa facilities conducted by Intelligent Spas (www.IntelligentSpas.com) achieved an excellent 61% response rate and provides a valuable tool for businesses competing in, or supporting the spa industry, to more accurately develop and plan spa-related products, services, campaigns and initiatives.

Some key industry totals and averages extracted from the report include:

• Intelligent Spas identified 390 spa facilities currently operating in Indonesia.
• 52% were spas located in hotels, resorts or retreats (destination spas) and 42% were day spas.
• The average indoor area of spa facilities in Indonesia was 713 square metres.
• 42% of the total spa space was allocated to treatment rooms.
• Spas contained nine treatment rooms on average.
• 67% of spas owned a relaxation room compared to 3% that arranged access for their visitors to use a nearby relaxation room.
• Baths with water and/or air jets were provided by 75% of respondents.
• One hour body wraps were priced from IDR238,533 (approximately USD26) on average.
• Herbal tea was the most common complimentary food or beverage item provided by spas, with 87% offering it to visitors.
• Increased demand by clients for holistic spa treatments was the most common industry trend observed by spa owners and managers

“The excellent response rate enabled the survey results to be broken down further for more accurate benchmarking and analysis” explained Julie Garrow, Managing Director of Intelligent Spas, “and it was very interesting to examine the key differences between day spas and destination spas, as well as spas located in Bali versus Jakarta”:

• Day spas were larger in terms of indoor space when compared to destination spas.
• Day spas contained more treatment rooms than destination spas.
• Relaxation rooms were more commonly found in day spas.
• Day spas were more likely to provide tub soaks.
• Spa facilities located in Jakarta were much larger in terms of indoor area compared to spas in Bali.
• Jakarta spas contained more treatment rooms compared to spas in Bali.
• A higher proportion of respondents in Bali stated they offered complimentary fresh fruit/vegetable juice to visitors, in comparison to Jakarta spas.

Source: Intelligent Spas, Spa Industry Profile Indonesia 2003-2009

About the Research

The research primarily aimed to establish updated and reliable spa industry benchmarks for key infrastructure and operations indicators, encourage businesses to better understand, service and support the spa industry, provide accurate data for the media to reference and generate greater awareness of the spa industry to promote growth in visitation numbers.

The comprehensive profile of the Indonesian spa industry includes over 700 quantitative survey results relating to spa types, locations, business models, capture rates from primary facilities such as hotels and resorts, infrastructure, supporting facilities, plus therapies, treatments and programs offered. A selection of key survey findings are also broken down to identify benchmarks for day spas versus destination spas, as well as analysis by Jakarta versus Bali, where possible. Qualitative observations from spa owners and managers are also summarised. Supporting sections provide a detailed description of the research methodology, an overview of the value of industry statistics and useful facts and information about Indonesia, including an overview of the key international visitor arrival markets.

The new Spa Industry Profile Indonesia 2003-2009 report is available in both English and Bahasa Indonesia and may be purchased and immediately downloaded from www.IntelligentSpas.com.

How to Use Spa Industry Statistics as a Business Tool

Like any other small, medium or large business, it is imperative that analysis and planning activities be conducted to minimise the risk of failure. One of the first questions to ask yourself is "how is my business doing?" and this can easily be answered by comparing your spa’s performance against industry averages. The overall industry average for your country is a useful guideline, however where the survey response rates are high enough, industry averages may be broken down further to enable more accurate analysis by calculating, for example, industry averages for your particular type of spa and industry averages for your spa’s specific location.

Unique and common facilities and service offerings may also be measured and analysed to assist the planning for the business’ future. Consider: At what point does a facility or service offering change from a consumer novelty to a consumer expectation? If for example, a high proportion of spas offer a relaxation room, one may assume as spa consumers become more experienced, they may come to expect a relaxing area within a spa and be disappointed if they do not have the opportunity to enjoy that type of facility before and/or after their spa treatment.

About Intelligent Spas

Intelligent Spas is a 100% independent research company specializing in the spa industry. Founded in Singapore in 2001, it has pioneered spa industry research in the Asia Pacific region and continues to publish a range of Spa Business & Operations Manuals, Spa Consumer Surveys and Spa Industry Surveys to assist the development and growth of this important industry.

TABLE OF CONTENTS - Spa Industry Profile Indonesia 2003-2009

1 Executive Summary 7

1.1 About the Research 7

1.2 How to Use Spa Industry Statistics as a Business Tool 7

1.3 About Indonesia 8

1.4 Tourism Overview 8

1.5 Spa Industry Overview 8

1.6 Spa Business Models 8

1.7 Spa Infrastructure 9

1.8 Spa Menus 9

1.9 Spa Industry Trends 9

1.10 Spa Business Names 10

1.11 Day Spa Business Analysis 10

1.12 Destination Spa Business Analysis 10

1.13 Spa Business Analysis by State 11

1.14 About Intelligent Spas 11

2 About the Research 12

2.1 The Value of 100% Independent Research 12

2.2 Background of the Research 12

2.3 Research Objectives 12

2.4 The Definition of “Spa” 13

2.5 Research Methodology 13

2.6 Sample and Sub-Sample Sizes 14

2.7 How to Read the Report 14

2.8 Acknowledgements 15

3 How to Use Spa Industry Statistics as a Business Tool 16

3.1 Why Spa Businesses Need Spa Industry Statistics 16

3.2 Why Suppliers, Financial Institutions, Associations, Tourism Authorities and Other Related Organizations Need Spa Industry Statistics 17

3.3 The Connection Between Spas and Tourism 18

4 About Indonesia 19

4.1 Useful Facts and Information 19

4.2 Tourism Overview 20

4.2.1 International Visitor Arrivals 2003-2006 20

4.2.2 International Visitor Arrivals by Country in 2005 20

4.2.3 Average International Visitor Nights 2003-2005 21

5 Spa Industry Overview 22

5.1 Current Number of Spa Facilities 22

5.2 New Spa Developments 22

5.3 Growth in Spa Numbers 2003-2009 22

5.4 Spas by Main Type 23

5.5 Spas by Sub-Type 23

5.6 Spas by State Location 24

6 Spa Business Models 25

6.1 Ownership Structure of Spas 25

6.2 Chain/Groups Versus Individually Branded Spas 25

6.3 Franchised Versus Non-Franchised Spas 25

6.4 Spas Owned by Primary Facility 26

6.5 Proportion of Spa Visitors Captured where Primary Accommodation Property Owns the Spa 27

7 Spa Infrastructure 28

7.1 Average Size of Spa Facilities 28

7.2 Breakdown of Total Indoor Spa Space 28

7.3 Number of Treatment Rooms 28

7.4 Treatment Rooms by Private, Semi Private or Public 29

7.5 Treatment Rooms by Dry, Wet or Combination 29

7.6 Treatment Rooms by Single, Double or Greater Occupancy 29

7.7 Number of Hair and Make Up Stations 29

7.8 Breakdown of Hair and Make Up Stations 29

7.9 Number of Manicure and Pedicure Stations 29

7.10 Breakdown of Manicure and Pedicure Stations 29

7.11 Treatments Conducted in Areas Outside the Spa 30

7.12 Support Facilities by Ownership Versus Access Arranged 31

7.13 Support Facilities by Gender-shared or Separate Female/Male 32

8 Spa Menus 33

8.1 Spa Therapies Practiced 33

8.2 Spa Water Treatments Practiced 34

8.3 Spa Body Treatments Practiced 34

8.4 Spa Massages Practiced 35

8.5 Spa Beauty Services Practiced 36

8.6 Spa Programs, Classes and Consultations Practiced 37

8.7 Starting Prices of Standard Spa Treatments 37

8.8 Complimentary Food and Beverages Provided 38

9 Spa Industry Trends 39

9.1 Key Spa Industry Trends 39

9.2 Observations Relating to Spa Treatments 40

9.3 Observations Relating to Clients 40

10 Spa Business Names 41

10.1 Spas by First Letter in the Business Name 41

10.2 “Spa” in the Business Name 41

10.3 Changes to Business Name 41

11 Day Spa Business Analysis 42

11.1 Day Spas: Average Size of Day Spas 42

11.2 Day Spas: Breakdown of Total Indoor Space 42

11.3 Day Spas: Number of Treatment Rooms 42

11.4 Day Spas: Treatment Rooms by Private, Semi Private or Public 43

11.5 Day Spas: Treatment Rooms by Dry, Wet or Combination 43

11.6 Day Spas: Treatment Rooms by Single, Double or Greater Occupancy 43

11.7 Day Spas: Number of Hair and Make Up Stations 43

11.8 Day Spas: Breakdown of Hair and Make Up Stations 43

11.9 Day Spas: Number of Manicure and Pedicure Stations 43

11.10 Day Spas: Breakdown of Manicure and Pedicure Stations 44

11.11 Day Spas: Support Facilities by Ownership Versus Access Arranged 45

11.12 Day Spas: Support Facilities by Gender-shared or Separate Female/Male 46

11.13 Day Spas: Spa Therapies Practiced 47

11.14 Day Spas: Spa Water Treatments Practiced 48

11.15 Day Spas: Spa Body Treatments Practiced 48

11.16 Day Spas: Spa Massages Practiced 49

11.17 Day Spas: Spa Beauty Services Practiced 50

11.18 Day Spas: Spa Programs, Classes and Consultations Practiced 51

11.19 Day Spas: Complimentary Food and Beverages Provided 52

12 Destination Spa Business Analysis 53

12.1 Destination Spas: Average Size of Destination Spas 53

12.2 Destination Spas: Breakdown of Total Indoor Spa Space 53

12.3 Destination Spas: Number of Treatment Rooms 53

12.4 Destination Spas: Treatment Rooms by Private, Semi Private or Public 54

12.5 Destination Spas: Treatment Rooms by Dry, Wet or Combination 54

12.6 Destination Spas: Treatment Rooms by Single, Double or Greater Occupancy 54

12.7 Destination Spas: Number of Hair and Make Up Stations 54

12.8 Destination Spas: Breakdown of Hair and Make Up Stations 54

12.9 Destination Spas: Number of Manicure and Pedicure Stations 54

12.10 Destination Spas: Breakdown of Manicure and Pedicure Stations 55

12.11 Destination Spas: Support Facilities by Ownership Versus Access Arranged 56

12.12 Destination Spas: Support Facilities by Gender-shared or Separate Female/Male 57

12.13 Destination Spas: Spa Therapies Practiced 58

12.14 Destination Spas: Spa Water Treatments Practiced 59

12.15 Destination Spas: Spa Body Treatments Practiced 59

12.16 Destination Spas: Spa Massages Practiced 60

12.17 Destination Spas: Spa Beauty Services Practiced 61

12.18 Destination Spas: Spa Programs, Classes and Consultations Practiced 62

12.19 Destination Spas: Complimentary Food and Beverages Provided 63

13 Spa Business Analysis by Location 64

13.1 Average Size of Spa Facilities by Bali and Jakarta 64

13.2 Breakdown of Total Indoor Spa Space in Bali 64

13.3 Number of Treatment Rooms by Bali and Jakarta 65

13.4 Support Facilities Available by Bali and Jakarta 66

13.5 Spa Therapies Practiced by Bali 67

13.6 Spa Water Treatments Practiced by Bali and Jakarta 67

13.7 Spa Body Treatments Practiced by Bali and Jakarta 68

13.8 Spa Massages Practiced by Bali and Jakarta 68

13.9 Spa Beauty Services Practiced by Bali and Jakarta 69

13.10 Spa Programs, Classes & Consultations Available by Bali and Jakarta 69

13.11 Complimentary Food and Beverages Provided by Bali and Jakarta 70