Philippe Bourguignon, Vice Chairman, Revolution Places & CEO, Exclusive Resorts

The next Global Spa and Wellness Summit will take place in Aspen, Colorado. This is not a random choice. The Summit has entered into a partnership with the Aspen Institute to attempt to go beyond the day to day of our industry, take a global view at our industry, and relate it to the global world today. We often have a tendency to look at ourselves and discount what the world is telling us. This year we will attempt to understand what the world is telling us and what it means for us.

I learned a lot via the Aspen Institute personally over the years, including many new ideas and ways of thinking. For the Summit it will mean thinking on a global scale. The fact that the Summit is returning to the US after many years abroad is also significant.

So, what is the world telling us? We are not at the beginning of a new millennium, but on the threshold of a new civilization. The Gutenberg millennium was the kingdom of the left-hand side of the brain, of reason and logic. In the new millennium the right-hand side of the brain will prevail, together with intuition, paradox and freedom. The consumer society is becoming the information society, our mass society is shifting towards a society of individuals, and our standardized society is moving toward a hybrid society.

With soon (2050) two more billion inhabitants on our planet, almost all of them from Asia, Africa and Latin America, the most formidable challenge of all times face us: food scarcity, climate, immigration, etc. The relative demographic weight of the population in the richest countries (most particularly Europe and the United States) will drop by about 25% – to 12% of the total world population by 2050. At the same time, the unprecedented transfer of wealth from West to East now under way will accelerate in the foreseeable future: emerging markets will outstrip a number of mature ones.

Traditional economics are challenged: the American model of a credit consumption-led economy may be coming to an end. So too has the Chinese model of an economy built on export-led growth and an undervalued currency. The two main pillars underpinning the western world democracies – (1) robust economic growth raising living standards for all in the US, and (2) the welfare state and income redistribution in Europe – are shaking; and the scale of the challenge now facing most Western countries is of monumental proportions.

The combination of too much debt and too little growth is pushing countries into a classic debt trap. Fiscal pressure will stress economic conditions for an extended period of time. And policy-makers will face difficult trade-offs between the need for fiscal restraint and the demand for maintaining social safety nets: Political volatility will prevail.  As a result, the worldwide phenomenon of “indignation” which seems to be brewing everywhere can only increase.  2011 will be remembered as the year of rising global indignation.

The connectivity and the complexity we have engendered in the global landscape transcend our ability to comprehend, model or manage events. Many limitations constrain our ability to interpret complex issues, particularly as we tend to attribute single causes to interconnected events. This is literally overwhelming the capabilities of politicians and business executives to make sensible and well informed decisions…it’s very, very tough.

To summarize, we have a remarkable central tension underway – on the one side, a very positive trend, huge innovation and technological advancement – human innovative capacity is at an unprecedented height – and on the other hand rapid social change and transformation.  And this tension is occurring within a very complex environment, where many of our traditional structures and assumptions are eroding.

If you translate all of this and what it means for our industry, the summary is simple: The main challenge for the spa and wellness business is to adapt to austere financial conditions while serving more sophisticated customers asking for more and different, with a shrinking pool of talented staff.

What is the answer? Innovation through Imagination.

This is going to be the focus of the next Global Spa and Wellness Summit. How can our industry face all those challenges thru innovation, and can we use imagination to become more innovative?

I personally believe that true innovation means not only questioning the consumer, but also sharing an idea; an idea you think is good for you and may be meaningful for others. Innovation does not stem from experience, but from a vision of what we wish to experience tomorrow. That is how the companies I have been associated with were founded: this is how Walt Disney created Disneyland, Paul Dubrule Accor, Gerard Blitz Club Med and Pierre Omadyar eBay; same for Miraval … and so many companies today. None of them would have been launched based on a market survey. Yes, I strongly believe that the path to follow is imagination.

To use our imagination, we should never move in a straight line. We should get off the highway and take the side roads, even if we don’t know exactly where they lead. An encounter, a discovery, a new idea, or simply a moment of happiness may await us there. We should bring our own reflections to things, rather than simply doing what the market is telling us to do.

“Imagination rules the world.  The vice of our modern institutions is that they do not speak to the imagination.” The author? Napoleon in 1815. Is spa and wellness speaking enough to the imagination?

“Innovation through Imagination.” Nothing could be more exciting for the board of the Global Spa and Wellness Summit. We will make sure that the agenda reflects this excitement.  So many difficult things around us, a difficult environment, a challenging world, so much uncertainty…it is time for imagination!

As you probably know by now, the theme of our 2012 Global Spa Summit that will be held June 3-6 in Aspen in collaboration with the Aspen Institute is going to be “Innovation Through Imagination.” I am astounded at how many new books have recently been published on this topic. It certainly is timely – all around the world.  It might be a fun thing to add a few of them to your reading list between now and the June Summit (maybe even over the holidays?).

One such book, The DNA of Disruptive Innovators by Kyer, Gregersen and Christensen, got my attention right away with this statement on the first page, “The ability to innovate is the ‘secret sauce’ of business success.”  Indeed. Other books on my list include the brand new Relentless Innovation by Jeffrey Philipps, John Kao’s Innovation Nation and From Imagination to Innovation by Samli.  I notice there are so many others to choose from and many from different countries around the world.

I want to draw your attention to another book – this one is currently on the NY Times Best Seller list.   It is about one of the greatest innovators of our time, founder of Apple (among other companies) Steve Jobs. The book was written by Walter Isaacson.

Here is the uncanny coincidence.  The author, Walter Isaacson, happens to be the President and CEO of the Aspen Institute. You might enjoy reading a bit more about him as well as the Aspen Institute, its history, accomplishments and future goals.

No one could have known over a year and a half ago, when we were discussing a possible collaboration with the Institute, that: a) Steve Jobs would pass away October 5th, 2011 b) the Steve Jobs book would come out October 24, 2011, and c) based on our surveys and Salon Dinners, the designated theme for our Summit would be “Innovation Through Imagination.”

It makes it very exciting to see that we have truly plugged into today’s Zeitgeist and, I think, it speaks to the exciting 2012 that we have in front of us.  Imagination and innovation will no doubt play a key role in our individual endeavors and for our industry as a whole.

A final reflection on the 2011 Global Spa Summit from GSS Board Member, Susie Ellis:

Bali is a uniquely special place, one that has made a lasting impression on those of us who were able to attend – myself included.  In reflecting on this wonderful country and the time we spent there, I couldn’t help but feel deeply saddened by one thing I have learned: The pollution of the country’s waters, which is exacerbated by the local communities as well as the hotels and resorts, is a real tragedy.  

A few months before the Summit, I received an email from Nora Pouillon, founder of Nora’s Organics (America’s first certified organic restaurant), located in Washington, D.C.  We had met at a conference and she alerted me to this disturbing issue, noting that her son had just moved to Bali and established a waste management company in hopes of becoming part of the solution.  Nora shared several articles with me, including “Trouble in Paradise” by Joe Cochrane at the Wall Street Journal and “Holidays in Hell: Bali’s Ongoing Woes” by Andrew Marshall at Time magazine. You may find them enlightening as I did.

With very little time before the Summit to prepare a good strategy, we nevertheless emailed registered delegates with an interest in environmental and sustainable issues asking for help.  Christopher Dean, chairman of Organic India, stepped up to coordinate an effort; he led the table topic lunch discussion on “Bali’s Environmental Issues,” which was completely full and outlined some next steps, including meeting with keynote speaker John Hardy, who has exemplified all things sustainable through his local Balinese project, the Green School.

While I have now become more cognizant of the issue, nothing made a stronger impression on me than my early morning swims in the ocean in front of the Laguna Resort & Spa. The first day the water seemed warm, clean, and refreshing.  The next day, it was filled with garbage.  Winds, or the tide, must have shifted, bringing candy wrappers, cans, and all sorts of horrors to the breaking waters on the shore.  It grieves me even now to think about it.

Our slogan, “Joining Together.  Shaping the Future.”  has guided the GSS thus far in advancing the spa and wellness industry in a variety of ways.  I can’t help but feel that this phrase can apply to issues, environmental or otherwise, we discover along the way in places that could use our help.

I look forward to our future communications, where we will be turning our attention to the 2012 Summit in Aspen, Colorado.  We will likely see some good examples of environmental stewardship in Aspen.  With each of our Summits taking place in a different part of the world, it is my hope that we can move forward with a continued awareness for the places where we have previously gathered, and look back – and possibly give back in our own way – to those magical places that have inspired us.

White Sulphur Springs, WV – August 24, 2011: A forward-thinking medical initiative, which will dramatically impact how healthcare is delivered around the world, is being developed in West Virginia. Jim Justice, chairman and owner of The Greenbrier, along with world-renowned physicians Dr. James Andrews, Michael Immel, orthopedic practice management consultant and long time advisor to Dr. Jim Andrews, and lauded healthcare developer Jack T. Diamond, today announced the creation of The Greenbrier Medical Institute. While the Institute will be built in phases, the initial stages are estimated at $250 million. Phase I will include five buildings including a relocated and expanded executive health Greenbrier Clinic, a Jim Andrews sports medicine center, a cosmetic surgery and lifestyle enhancement academy, a sports performance and training facility and a boutique hotel with 20 VIP suites. The announcement is the result of 15 months of meetings and diligence on the part of numerous individuals, including other highly regarded physicians and professionals who requested not to be identified.

The concept for this cutting-edge endeavor was developed by Andrews and Diamond, who envisioned a world-class medical complex which would revolutionize healthcare. In addition, Dr. E. Gaylon McCollough, an internationally recognized surgeon and teacher in the cosmetic surgery field, has joined the team. Their goal was to establish a medical mecca with numerous components including sports performance, wellness, research, product development, education, cosmetic surgery, preventive care and other specialties. At the same time, they wanted a place that would attract the best physicians and healthcare professionals in the world, in turn creating a think tank of global proportions. Throughout their discussions, locations such as London, England, Riyadh, Saudi Arabia, Brasilia, Brazil and Seoul, South Korea were considered. However, once the idea was presented to Justice, the concept became a reality with its home to be White Sulphur Springs, West Virginia.

“This announcement is the result of months of confidential meetings and due diligence. Our founding members have been investigating various locations across the globe to determine just the right combination of health care resources, world class amenities, serenity, hospitality and proximity to thought leaders,” said Diamond. “When we approached Jim about the idea, he only asked what he could do to make our dream a reality. We knew then we had found the perfect partner.”

For Justice, who bought the 6750-acre resort in 2009, the decision was practical and emotional. “Over 200 years ago, people came here to improve their health; soaking in the sulphur water, using hollowed-out trees for bathtubs. That’s how The Greenbrier was born,” said Justice. “Now, we are redefining healthcare with the expertise of these highly regarded professionals, a state-of-the-art medical facility and forum for research and education. And we are doing it right here in West Virginia. How exciting is that?”

The Greenbrier Clinic was the nation’s first executive health program when it opened in 1948. The Clinic’s distinguished team of nine physicians includes Dr. Doug Jones, medical director and Dr. Suzanne Romeo, director of the Clinic’s laser and aesthetic services. Long known as the leaders in diagnostic excellence and personalized executive care, The Clinic team will be a key component of The Greenbrier Medical Institute, which will employ approximately 525 individuals.

One component of the Institute will be a sports medicine center, led by Andrews, along with Dr. Kevin Workman and Dr. Bob Haas of Greenbrier Valley Physical Therapy. Workman and Haas have extensive experience in athletic rehabilitation which compliments Andrew’s surgical expertise. “This will be a comprehensive diagnostic and clinical orthopedic sports medicine complex combined with a sports enhancement and training facility. This Institute is a unique combination of the world’s leading physicians and health care experts coming together and acting as a ‘think tank’ to stimulate medical research, drive innovation, force change and redefine how the world and individuals approach health, wellness and longevity,” said Andrews.

Along with Workman, Dr. P. Gunnar Brolinson, team physician at Virginia Tech, will play an integral role in the Institute’s neurological (brain and spine) sports medicine center which will focus on the assessment, treatment and rehabilitation of neurological impact injuries (concussion) and sports related spine injuries. This will be the first of its kind and, when affiliated with the sports medicine component, will provide a range of sports injury/performance related services that will be unparalleled anywhere in the world. The center will provide leaders in the neurological sports medicine profession a format for collaboration, research and innovation in this rapidly advancing field.

There have been ongoing discussions with the WVU Health Sciences Center along with the Edward Via College of Osteopathic Medicine and the West Virginia School of Osteopathic Medicine. These relationships will prove greatly beneficial to these institutions as well as The Greenbrier Medical Institute.

Full-body rejuvenation and appearance enhancement are other facets of The Greenbrier Medical Institute. Under McCollough’s leadership, the center’s cosmetic and reconstructive surgeons will not only improve the way patients look, but how they see, and care for, themselves. According to McCollough, “People who do the things that are required to look their best tend to find better health. Once patients understand how appearance, health, and performance are interconnected, they will be eager to work with other Institute professionals in order to lose unwanted fat, build muscle, become more physically and mentally fit, improve endurance and feel more confident in taking on challenges which unhappy and unhealthy people see as impossible.”

The Greenbrier Medical Institute complex, designed by architect Willie Stokes, will feature classic Georgian architecture similar to the resort’s façade. A replica of the Springhouse, the site of the property’s sulphur springs, will be incorporated into the facility. The Institute will include guest suites for patients and their families. Diamond and his partner Mark E. Krohn are leading the development of this extensive project.

About The Greenbrier:

Residing on 6,750-acres of lush landscape in West Virginia’s Allegheny Mountains, The Greenbrier is an award-winning resort which has been offering a welcoming home to its guests since 1778.  This National Historic Landmark, also known as America’s Resort, provides a world-class haven for discerning business guests and sophisticated leisure travelers. In 2010, the resort opened the elegant Casino Club, “where Monte Carlo meets Gone with the Wind,” and hosted the inaugural Greenbrier Classic, a PGA TOUR, FedExCup event.  In addition to golf on four championship courses, The Greenbrier’s amenities and services include a wide variety of flexible and unique meeting and event venues, several fine restaurants and lounges, including Prime 44 West steakhouse, In-Fusion and The Forum; access to more than 50 recreational activities and a luxurious 40,000 square-foot Spa. The Greenbrier is a founding member of Preferred Hotels & Resorts and of Historic Hotels of America. For more information, please visit www.greenbrier.com or call 800-624-6070.

Media contacts:

Lynn Swann at The Greenbrier

Tel : 304-536-7857

E-mail: lynn_swann@greenbrier.com

Mark Liebermann at WEILL

Tel: 1-866-PR-WEILL

E-mail: mliebermann@geoffreyweill.com

We love receiving emails from delegates who attended the 2011 Global Spa Summit in Bali. By sharing their personal “takeaways,” we learn what part of the Summit made the greatest impression or what insights resonated the most.

Last week, I received an extensive report from sha., who attended the GSS for the first time and whose intersection with the world of spa has been quite recent, having come from the art world.   I very much enjoyed reading his entire piece, finding his viewpoint of the Summit fascinating.  I think some of the sections were especially poignant with the one titled “Need for innovation” versus “Fear of innovation” particularly thought-provoking, given that our industry has been discussing this topic for several years now.

I thought you might enjoy reading this report; so with sha.’s permission, I am sending you the link to the full report.  I have also included a short excerpt of the report below.  It will take you back to the magic of Bali and possibly touch you with a unique perspective.

An excerpt from Trend Report Spa & Wellness 2011
Written by sha., http://www.sha-art.com

Introduction
Some time ago I, as a creative “outsider”, began an excursion into the world of wellness that led, more coincidentally than intentionally, to the heart of the spa industry.  As an artist being asked to present a “Lesson in Innovation” I was pleased to receive an invitation to the most important industry event of the year, the Global Spa Summit 2011 in Bali.  As a result, I now feel I have become an “insider” and felt moved to put on paper some of my thoughts regarding this experience, a report on current wellness trends, share some discussions with global players in the spa industry and my personal experiences on the Island of the Gods, Bali.  Thus…my travelogue through distant lands and relaxation techniques, full of new connections and unusual insights.

Disillusionment
Make no mistake: it’s all about business.  The spa industry is driven by success and economic expansion; it lives and dies according to these two factors.  And it’s not just the classic issue (also common to artists) of “can I make a living at it?” – here it’s about maximizing profit margin, or to be perfectly clear: making more money.  Behind the global players in the industry stand powerful and highly professional investors.  These investors are able to make dispassionate strategic decisions, even in highly emotional, sensitive and highly intangible matters.  Still, I’m already familiar with this phenomenon from the art market, where most global investment is based on the market value of an object – even though the “object” is a piece of art, with a value and content all its own.

Relief
In spite of these base instincts, the evil pursuit of Mammon and so forth, I was pleasantly surprised in Bali: the movers in this field (not the investors in the background, of course, but the personalities responsible for the image and operations of the companies themselves) seem to truly identify with, and be passionate about, their business.  In any case, the participants at the Global Spa Summit took active part in the debates about the broad area between wellness and medicine, between well-being and therapy.  And I must not forget to mention one other thing: as an artist I have seldom been welcomed with the kind of friendliness and warmhearted feeling that I experienced from these spa enthusiasts.

Balance
The spa business is balanced between two seemingly opposing ideas: on the one hand a clearly defined, economic demand for success; on the other, the particularly “soft” motive of relaxation, pampering, treatment, caring and therapy – all features of the basic human desire to help.  This balancing act is at once the central challenge and the unique characteristic of the industry.  I find this subtle play of opposites fascinating – so fascinating, in fact, that I have been forced to think of it again and again while writing this report.  Perhaps it’s partially due to the fact that I find myself as an artist directly at this point between material and immaterial: I produce works of art that are then put to use in everyday contexts, such as in spas and therapeutic settings.  Thus, this theme of balance will probably turn up now and again throughout the course of this article . . .

To continue reading sha.’s full report on the 2011 GSS, click here.

First Comprehensive Report on Medical Tourism and Wellness Tourism Tackles Key Challenges and Opportunities For These Distinct Markets

New York, NY September 8, 2011 – The Global Spa Summit (GSS) today released key findings from its research initiative “Wellness Tourism and Medical Tourism: Where Do Spas Fit?” – the most comprehensive investigation of the wellness tourism and medical tourism industries to date. The 100-plus-page report contains: an overview of existing definitions, industry data, and organizational and promotional models underway worldwide; twelve national case studies; results from a survey of 200+ industry stakeholders; and recommendations for governments and businesses going forward.

The full report: http://www.globalspasummit.org/images/stories/pdf/spas_wellness_medical_tourism_report_final.pdf

Key Findings:

• Governments should develop and promote medical tourism and wellness tourism separately.
• Wellness tourism represents by far the best “fit” for the spa industry, and already generates twice the global revenues of the more-established medi cal tourism market ($106 bil. vs. $50 bil. USD).^[1]
• Persistent terminology confusion, combined with weak or generic promotion, is significantly holding back these emerging travel categories.

“This report should be read by every tourism board, spa and medical facility worldwide,” noted Susie Ellis, GSS Board Member. “Medical tourists and wellness tourists spend 3 to 5 times more than the average tourist, and the financial opportunities within both these sectors are vast. This research will help public and private players establish smarter overall strategies, organizational structures and marketing campaigns to more powerfully position themselves within these lucrative markets.”

Key Roadblock: Conceptual Confusion

Wellness tourism’s and medical tourism’s growth are being stymied by inconsistent, confusing terminology and conceptual intermingling. The survey of 200+ executives reveals a dramatic lack of consensus around definitions/concepts, even among industry players.

• 25% of executive respondents left the request for open-ended definitions of “medical,” “wellness” and “health” tourism blank, or answered “don’t know.”
• 66% couldn’t provide a “health tourism” definition, or responded, “don’t know,” revealing confusion around this term is especially acute.
• 89% report medical tourism and wellness tourism are used/defined inconsistently around the world.
• 95% argued inconsistent definitions are causing consumer confusion, and that a common language needs be established.

Recommendations:

• Clear, consistent definitions need to be established globally. Usage of “health tourism” should be avoided, because the term  “health” is associated both with the medical arena and complementary medicine/spas.
• Suggested “core” definitions: a “medical tourist” travels “because they’re generally ill, or seeking cosmetic/dental surgical procedures/enhancements,” while a “wellness tourist” travels because they’re “seeking integrated wellness/preventative approaches to improve their health/quality of life.”
• Governments and private entities should not intermingle these tourisms at the language, organizational or marketing level.

Key Roadblock: Weak or Generic Promotion

Combining case study data (a global cross-section of national approaches: Austria, Australia, Brazil, Canada, Hungary, India, Indonesia, Jordan, Morocco, Philippines, South Africa, Thailand), with the survey results, reveals that governmental promotion of these tourisms is often non-existent, inconsistent or “unbranded.”

• Only 29% of respondents (globally) report their tourism organizations are actively promoting medical tourism, 35% for wellness tourism. (Only 17% report both domestic and international tourists are being targeted.)
• North America lags Europe and Asia: Only 11% of U.S. and Canadian respondents report medical tourism is being promoted, 19% for wellness tourism.
• 57% of European executives report wellness tourism is being promoted, 41% for medical tourism.
• 57% of Asian executives report their country promotes medical tourism, 50% that they promote wellness tourism.
• Arguably no country studied has developed a strong, unique national brand image for either medical or wellness tourism, even perceived market leaders.

Recommendations:

• Medical tourism marketers need to capitalize on/promote their true medical specialties.
• Wellness tourism marketers need to communicate their wealth of indigenous, natural-asset-based wellness/healing traditions, as branding will become increasingly important as markets become more competitive.
• Domestic, intra-regional and international medical and wellness tourists all need to be uniquely targeted.

Released at the GSS in Bali, Indonesia in May 2011, the report was a collaborative effort of Katherine Johnson, research scientist, SRI International; Dr. Laszlo Puczko, head of the Tourism Division, Xellum Ltd. (Hungary); Melanie Smith, PhD, lecturer/researcher, Corvinus University (Budapest); and Susie Ellis, Global Spa Summit Board Member.

[1] SRI International, “Spas and the Global Wellness Market,” 2010