Global Hot Springs Industry Update

Business, Culture and Community

Charles Davidson, Peninsula Hot Springs, Australia

Direct Use of Geothermal Resources African Rift Geothermal Conference

Ethiopia 2-4 November, 2016

HOTSPRINGS ASIA LEADS BY SIZE

Asia is the fastest growing market

Global Wellness Institute: Thermal/Mineral Springs Economy

2013

TOP HOTSPRING MARKETS

China and Japan represent 51%

of global industry

revenues.

Global Wellness Institute: Thermal/Mineral Springs Economy 2013, SRI Research

2013 Global Hot

Springs Revenues $50 billion

JAPAN THREE MAIN TYPES OF ONSEN

Day Onsen: mainly in big cities with spa service, like Day spa operation. Ave. spend ~15-20 USD

Local Public Onsen: often settled in onsen district serving the local residents, small and cheap. Typically 5-8 USD. Some are free.

Onsen Ryokan: Traditional lodges, often far away from cities, providing food and accommodation. Family and lovers are main guest types. Ave. spend per person per day is ~200 USD.

JAPAN HOT SPRING DEVELOPMENT

Prehistoric Era Rejuvenation after hard physical work

Nara Era Buddhist Activities

Kamakura Era From buddhist to recreation

Edo Period Flourishing for medical effects

Heisei Period Industry suffered due to economy. Regulation

v v

Products: Natural

Onsen for relaxation

Natural Onsen

for general health

Ryokan Facilities cuisine

Natural hotspring has always been core to Japanese hot spring industry

Natural Onsen

for specific health

conditions SPA

Ryokan Facilities cuisine

JAPANESE ONSEN ‘PROFESSIONAL’ Every hot spring has its own “Onsen ID Card”, including information such as:

Origin of the hotspring water

Mineral composition

Curative effects

pH, indicating different therapeutic effects

E.g., Kusatsu-onsen pH 2.6: very helpful for skin disease,

chronic gynaecopathia and hypertension;

Hirugami-onsen pH 9.5: popular among girls for skin care.

Temperature of the head spring: higher temperature can

dissolve more active ions (?)

Osmotic pressure: indicating mineral absorption.

Contraindication and cautions

Japan's Ministry of Environment has just launched an "Onsen Office" dedicated to onsen promotion

CHINA HOTSPRING OVERVIEW

More than 4,000 hot springs around China Hot spring tourism revenue is over 12 billion USD p.a.. No. of hot spring tourists increasing 15-20% p.a..

Map of Hot Springs in China

CHINA HOTSPRING DEVELOPMENT

Feudal China For a long period of time, hot spring is royalty- related Project: Huaqing Hot Spring

Before Opening-up policy Coal miners or government officials use as sanatorium Project: Liao Ning An Shan Tang Gang Zi Hot Spring

1980s to late 20th century Embrace masses recreation oriented Project: Zhuhai Yu Hot Spring Resort

Recently Flourishing with entertainment and multi-function hot springs Project: Mission Hills Haikou; Xi'an Lehua Water Park

early 21st century More elaborate and private soft wellness oriented with Spa Project: Brilliant Chongqing and Banyan tree Li Jiang

US$45 billion under construction or in the hot springs investment pipeline in China

Global Hot Springs DIFFERENT MODELS

Famous bathing towns bring deep cultural

and design influence to bathing. Traditional

healing cures with some level of health

care support remains important. Sauna is a key element of most

facilities.

CHINA

EUROPE JAPAN

INDIA China is proliferating

many types of hot springs with

accommodation, spa services, Chinese

medicine, food and entertainment. Multi-function and diverse.

Predominantly natural hot springs; making full use of the water itself. ‘Pure’, professional and clean. Day visits, Ryokan (inns) and large city based onsen (hot spring) spa centres are primary. Culture is dominant.

Religious and spiritual springs

dominate. Baths are simple but free.

Economy around baths thrives –

accommodation and street stalls.

Victorian Hot Springs Industry Development Plan

Thermal spas + attractions

Thermal Water Parks

in China

Kalambu Hot Springs Waterpark

Costa Rica

Ground-sourced thermal spring

water heated by an active volcano +

Costa Rica's largest waterpark

Ice

Cave

Examples of innovation and designing to suite the

climate at Peninsula Hot Springs

Ice Cave

Clay Ridge

Earth

Clays

Activity Center: Bikes, Walking, Horse Riding

Indigenous Boonwurrong Aboriginal Connection

Women’s and Men’s Spaces – Cultural Meeting Spaces

African Hot Springs Opportunity to connect with nature, culture, community and conservation