SPA Business: Georgian Hub of Medical and Wellness Tourism
The FINANCIAL — The ads are alluring and impossible to miss: a tranquil atmosphere featuring relaxed and beautiful people, all of whom presumably got that way by living the “spa” life.
Universally, the word spa is associated with stress reduction and relief, soothing sore joints and muscles, and simply feeling better about oneself. Moreover, going to a spa is a way of getting taken care of that is psychologically and culturally acceptable. We can even carry that feeling of being cared for with us for some time after the spa visit and more often than not that can help us cope better with stress.
Lately, Georgia has become further acknowledged as the world’s tourist destination and a constantly growing number of international arrivals for such a petite country can serve as a solid proof: in 2015, international arrivals reached its record number of 5 901 094 visits. However, according to the statistics published by GNTA, only 38.7% of visits lasted longer than 24 hours. To prolong international visitors’ stay, as well as to attract more tourists with a higher purchasing power, Georgia should think over new ways to position itself as a top tourist destination. The undiscovered potential can be unveiled in promotion of spa resorts across the country rich in mud and mineral springs.
Spa resorts are an indispensable pillar for Georgia to become a country of wellness tourism, especially when it has all the predispositions for fulfillment of this aspiration because of its reserves of mineral water and mud with unique features. According to Mr. Andro Jishkariani, the Director of Tskaltubo Spa Resort, spa resorts contribute directly to promotion of wellness and off season tourism because the medical treatment offered by spa resorts implies a necessity of repeated procedures and a prolonged stay. Having mentioned spa resorts as part of medical treatment, it is important to underline the fact that spa in itself is also a part of service of a fast developing sector of luxurious hotels. Along with it, the most interesting perspectives for investments are to be found in improving and extending tourist infrastructure of spa resorts located in Tskaltubo, Utsera, Borjomi, Likani, Sairme, Abastumani and Akhtala.
Among the abovementioned sites, Borjomi is the only one that has already created a brand name for itself. Mr. Giorgi Danelia, Deputy Head of Investment Department at JSC Partnership Fund, informs that this achievement can be explained due to a well-known brand Borjomi selling mineral water across the world as well as to the presence of internationally reputable hotels such as Crowne Plaza. Taking into consideration the fact that Borjomi has already become a popular tourist destination, new construction projects of hotels and tourist facilities should be previewed to satisfy the on-growing demand.
As far as Tskaltubo is concerned, it was one of the most popular resorts during the Soviet times. It was even conceived due to a special master plan: all the sanatoriums were built around mineral radon waters. These waters are unique in the world: the springs come out of the ground without even being pumped. They achieve human body temperature and have the necessary elements to treat different diseases. Mr. Jishkariani elaborates that this water is for external use and helps people suffering from the diseases of locomotor apparatus, cardiovascular and nervous systems, as well as gynecological and skin problems. Currently, after the collapse of the soviet system, there is only one operating sanatorium out of historic 16 in Tskaltubo. This sanatorium has been privatized and transformed into the privately owned Tskaltubo Spa Resort hotel. The same business group has also constructed a wellness and medical treatment centre on the territory adjacent to the hotel. According to Mr. Jishkariani, the installed spa equipment was partially bought in France.
The feasibility studies prepared by the tourism and hotel consulting company Kohl & Partner mentions a wide range of opportunities for foreign investments in Tskaltubo: construction of 9 hotels, medical and rehabilitation centers, spa installations, an amusement park and playgrounds, training centers, as well as development of river transport. In order to manage the set facilities, a corporation of the engaged entrepreneurs will be created. The Georgian National Investment Agency informs that Tskaltubo resort has a potential to become the second largest spa resort in the world due to uniqueness of its water features. Even the French company Vichy, having around 13 spa resorts across the world, has become very interested in Tskaltubo for its radon waters.
Another prospective resort for spa installations is to be found in Racha region, particularly, in the village Utsera. Utsera is rich in mineral water resources with more than 28 different types of liquid fit for treatment. The village can become a departure point for hiking and other health-related outdoor activities. Invest in Georgia promotes the development of an 80-key, non-branded, midmarket hotel with spa and medical department with mineral water based treatment rooms presumably called Medhotel Utsera. The tourist infrastructure in Utsera is yet to be developed. The same situation is in the village Abastumani that also has thermal waters with a temperature of 39-48 C°. These waters help treat such a disease as tuberculosis.
It is worth mentioning that some spa resorts are under private ownership that is in the case of Sairme resort. It implies that potential foreign investors should sometimes be in search of concessions from the part of the on-site private owners. Nevertheless, the majority of spa resort infrastructure belongs to the state that is extremely interested in attracting foreign investors. The state owned sanatorium in a mud cure resort Akhtala also pursues this strategy. “Recently, the Ministry of Infrastructure of Georgia has carried out the works to improve the infrastructure on the territory” – Mr. Giorgi Tutiashvili, Director of Akhtala Sanatorium told Experto – “but still, we have more aspirations to achieve. For example, we would like to extend the bed capacity of our sanatorium in order to receive up to 160 persons at the same time. Along with it, we would like to modernize our treatment room and install additional heaters there”.
The need for extension is justified as the destination is popular among the tourists, especially, from the post-soviet countries. This popularity can be attributed to the particular qualities of mud and its volcanic origin that makes it possible to treat bone and joint, as well as peripheral nervous system diseases. The extraction of the mud located 250-300 meters under the ground still demands better technical solutions and installations to facilitate the process.
Some private companies come up with innovative solutions to develop spa business in the regions of Georgia. For example, from 2016 the Schuchmann Group offers unique spa services at its vineyard-hotel complex near Telavi in eastern Georgia. As General Director, Mrs. Nutsa Abramishvili told Experto, “The leading product of Schuchmann Wine Spa is the grape seed oil produced by us. It has unique characteristics and is a 100% natural product with moisturizing, antioxidant, and anti-aging, softening oil properties that make the skin tender and elastic”. Mrs. Abramishvili further elaborated that “only local natural materials are used in Schuchmann Wine Spa, tenderly collected in our vineyards and processed with natural methods”.
Another original concept has led to the creation of the medical wellness resort BIOLI in Tbilisi. BIOLI is the only wellness resort in Georgia based on the philosophy and concept of early prevention of possible problems at the level of a vital unit – a cell. All the work is built from the perspective of a deep understanding of the body’s functioning. BIOLI develops tailored health improvement program for each person and helps him/her get re-established from the stress factors. Spa procedures are one of the key elements to accomplish this mission.
Finally, it is important to develop adjacent facilities to spa business in Georgia. Cosmetics business development can be a complementary profitable affair for these resorts. The Schuchmann Group has already looked into it. Together with the construction of rehabilitation, beauty and medical centers, there will be new opportunities to unite medical treatment with relaxation procedures. For instance, Tskaltubo Spa Resort has recently offered a new package to their clients – beauty and slim detox. Due to different available formulas, the companies should be able to differentiate their offer and, in this way, define their unique profile that can vary from simple relaxation procedures to such serious medical treatments as plastic surgery.
Having necessary natural resources as well as sites for further infrastructure extension, spa business turns out to be indeed an attractive suggestion for the foreign investors. Its development will contribute to the evolution of Georgia as a sustainable tourist destination offering high quality services to its target audiences – Georgian citizens and international visitors alike.
And yet, we need to keep in mind that among the biggest spa draws are the exotic treatment offerings and the equally exotic promises. The promises can go from the simple to the outrageous. It is vital to have sensible expectations of what each spa procedure can realistically offer to your body and your peace of mind.