Wellness Village spa closure: Who'll foot those credit card bills now?

Wellness Village spa closure: Who'll foot those credit card bills now?
By Zul Othman, TODAY | Posted: 12 November 2009 0736 hrs

SINGAPORE: Who foots the bill for credit card payments – the bank or cardholders – when a service provider makes a sudden disappearance?

The question is being asked after the shutdown of spa operator Wellness Village, which was reported in TODAY on Tuesday.

One customer was told by a former employee that the spa was still selling packages, some as costly as $10,000, up to the weekend before it closed down.

The four-year-old spa is also believed to have up to 7,000 customers and they are wondering about their credit card liability.

"I'm still paying off my instalment plan I paid with my credit card," said a customer who only wanted to be identified as Ms Tan. "Now that this has happened, will the bank take some liability?"

When contacted, the Association of Banks in Singapore (ABS) said the credit-issuing bank has already paid for the customers' purchases and the amount needs to be settled.

ABS said customers should take their grievances to the spa owner. Credit card holders can choose to pay in full or by instalments at some establishments.

"Regardless, the bank has a contractual obligation to pay the merchant in full once the charge slip is signed," UOB regional and Singapore head for cards and payment products Gan Ai Im also told MediaCorp.

"The card member, on the other hand, is obliged to make full settlement of all charges incurred on the card to the bank."

Wellness Village customers can call their card-issuing banks, however, to investigate or dispute the charges.

Said Citi Singapore vice-president of corporate affairs Caren Lee: "We understand the concerns of the customers and empathise with them in this situation."

"To support the investigation, the customer will need to provide supporting documents, including the purchase agreement with the merchant."

Consumers Association of Singapore executive director Seah Seng Choon said it has received 138 complaints from former customers since the spa's closure made headlines.

He said the "first thing the consumer needs to do is to file a claim against the business at the Small Claims Tribunal" to obtain an order demanding the business pays whatever amount is awarded.

This applies to firms that are still "live", such as Wellness Village, as indicated by checks with the Accounting and Corporate Regulatory Authority.

If the amount is not settled, the consumer can make a writ of seizure or other legal action, said Mr Seah. But that could cost more than the amount some customers would forfeit.

Lawyer Doris Chia from David Lim & Partners pointed to another alternative: For customers to "band together" and wind up the company. An official receiver will then look into the accounts and affairs of the company to see if money can be clawed back.

Consumers can also file a police complaint. "If directors of the company continued to trade or accept more payments for packages even though they know there was no chance the company will be able to honour the packages, this ... may render the directors personally liable," said Ms Chia.


- TODAY/so

- wong chee tat :)

Spa industry research for Singapore

Spa industry research for Singapore
Monday, September 20, 2004

The latest research findings relating to the Singapore spa industry was released, observing some downturn during 2003 however renewed growth in the demand for spa treatments during 2004.

The Spa Industry Survey Singapore 2003 report estimated average employees per spa decreased by 17.2% in 2003 compared to 2002, however there was an overall increase of 6.3% in employee numbers between 2000 and 2003.

Singapore Spa Industry Survey results include:


* Approximately two thirds of the spas surveyed were operating as private companies.


* Day spas made up 27% of spa types.


* 68% of spa visitors were female and 32% were male.


* 21% of spa visitors were international tourists.


* The majority of Singapore spa owners and managers surveyed predicted sound performance during 2004.




Julie Garrow, Director of Intelligent Spas, stated Singapore’s spa market is quite saturated with an abundance of supply of spa services available ranging from luxury, full service spa experiences to spa treatments offered at limited service beauty salons. Spa visits and employment were negatively affected last year by the SARS outbreak, however there seems to be continued growth in the demand for spa services by both females and males.”

Peter Sng, President of the Spa Association Singapore stated “The Singapore spa industry is experiencing interesting change as it recovers from a general downturn in 2003 and adapts to an influx of new supply, a positive sign for the industry. Both Singaporeans and international visitors are increasing enjoying spa visits which is generating renewed confidence in this niche market.”

- wong chee tat :)

Asia Insider: Singapore Spa Trends

Asia Insider: Singapore Spa Trends
By: Melinda Taschetta-Millane
Posted: June 5, 2007, from the June 2007 issue of GCI Magazine.

The spa industry in Singapore is booming. The country has been positioned as the urban spa hub of Southeast Asia by the tourism board, despite its relatively small size and reported economic downturn.

The island city-state of Singapore is located on the southern tip of the Malay Peninsula, and consists of one main island area of 263 square miles surrounded by 63 islets. Aside from Monaco, it is the most densely populated independent country in the world, with a population of 4.48 million, according to government statistics. Tourism is huge. The Singapore Tourism Board said Singapore had 8.85 million international visitor arrivals in 2006,  and Singapore’s spa explosion is due, in part, to this increase in steady tourism.
I wanted to see this urban spa hub up close and personal, so I recently spent a week in Singapore visiting some of the top local spas and sharing views on the industry with the professionals who run them. My journey was eye-opening and enlightening as I learned more about the trends and consumer demands that drive these businesses.
Advance Treatments, Back to Basics and Healing

Intelligent Spas’ Spa Industry Profile Singapore 2003–2008 identified that a key trend in the Singapore spa industry, indicated by managers and owners, is the competitive and affordable pricing currently being offered. The increase of medical-related treatments being introduced is another trend, and, as with the U.S. market, spa-goers in Singapore are looking for a total spa experience.
As for client trends, these Asian spas are seeing more male and younger clients, as well as more couples’ services, and gift certificate sales are on the rise.

At Estheva Spa, Tan Wee Tech, the spa’s director, sees the future trends combining antiaging treatments and massage.
“It’s all in the package,” he states. “The trend really is to put together comprehensive packages. It needs to be viewed as a lifestyle to help the client look good, and younger. Natural is also a trend. The spa industry is very competitive in Singapore; spas here must rise up in order to stay on top.”

Doris Sinnathurai, manager of RafflesAmrita Spa, feels that a big trend is the return to basics.

A lot of Asian treatments are going back to ayurveda and Chinese traditions,” she explains. “Most of the treatments are hands-on—look at Thailand and India for examples. A lot of people come to Asia as a retreat and for detox programs, plus as a way of their lifestyle.
“In addition, a lot of America is coming to Asia. This includes old, traditional treatments. Singapore turns to the States for esthetics, products and technology,” she says.

My recent trip to Thailand proved this to be true. In Thailand, the trends are all about culture and remaining true to the land. “Those fortunate enough to have experienced the warmth and hospitality of Thailand will know all too well the genuine care and excellent service that are delivered here,” says Richard Williams, spa director at The Peninsula Bangkok. “As a culture that lives from the heart—even having ‘heart’ words in their vocabulary—therein lies the unique advantage to spas developed in Thailand. To have team members who take a genuine interest in their clients, care about their jobs and are proud to work in their respective fields is certainly a plus to the spa industry. All who return to Thailand will be welcomed with the warm wai, which is a prayerlike greeting—just like namaste in India—that offers respect and warmth to all who visit.”

What’s hot in Singapore? Sinnathurai is seeing a surge in body treatments using chocolate, tamaran scrub, papaya wrap, saffron and coffee as main ingredients.

To be honest, I found this to be a bit surprising, having come to this unique little island hoping to find something new and indigenous that couldn’t be found in the U.S. Thailand’s rich resources—including sugar cane, rain forest honey and jasmine rice—left me a bit spoiled.

The high turnover in service is a problem with spas in Singapore, according to Stella Yfantidis, founder of Whatever Yoga & Healing Space, who notes that it is a very business-focused country. She sees the industry evolving toward holistic therapy and wellness. To better position her spa for the future, she would like to franchise it and increase the focus on healing.

“I’d like to make it more spa-oriented and bring in more organic products, all natural-based. It’s all about going back to nature,” Sinnathurai says, adding that spas in Singapore are going away from pampering and moving more toward healing.

One major challenge that Asian spa owners face, says Tech, is that the industry is growing in all directions, and there is a lot of competition.

“They need to differentiate, and that is where the spa owner must get creative,” Tech stresses. “Spas need to have a mainstay treatment, in addition to developing signature treatments. Innovation is the key. Spas must be able to stand out in the crowd, and clients need to be able to differentiate between spas.”

Despite the challenges, the spa future looks promising for this business-savvy country, and with tourism on the rise, spa managers will be putting more marketing power into working on capturing this affluent market.

There is a lot that American spas can learn by looking to their Asian counterparts for guidance. “I think the Asian spa industry now is widely recognized—particularly in the hotel, resort and destination spa environment—and that guest will be looking for a cultural experience that embraces the local culture, and services and products will be developed to reflect this,” adds Williams.

By looking East, the American spa industry can gain new insights into up-and-coming trends, as well as a fresh perspective on standard treatments. This is a profession in which the human touch will never go out of style.

- wong chee tat :)

Singapore Spa Industry Set for Double-Digit Growth

langkawi magazine
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Singapore Spa Industry Set for Double-Digit Growth

The spa industry in Singapore is in the pink of health, judging by the growth potential of local players, the Spa Association Singapore has said.
During a three-day industry event, the association said Singapore, Langkawi, Phuket and Bali could work together to grow Southeast Asia as a preferred spa destination.
The size of the spa industry in Singapore is valued at some S$140 million a year, and it is said to be growing fast.
Spa Association Singapore says annual revenue growth can be in the double digits, and it is unfazed by competition from spas in Thailand and Indonesia.
The association says Singapore spas give good value for money because of the high quality of the services provided.
Said Peter Sng, president of Spa Association Singapore, "On a ratio of one to 10, Singapore ranks as high as nine. Whilst we may not have the ambience, the natural scenery, what we have are the service standards, the education standards, career advancement, the development of the spa concepts. All of these give us a plus one."
The association also noted that all the big local spa players have a presence in key regional resort areas, such as Bali, Phuket and Langkawi, so they have a share of the growing pie in the region.
St Gregory Spa is setting up shop in Seoul, while The Aspara will be steaming up Japan with 100 new outlets.
Banyan Tree is another spa operator which has a strong regional presence.
Instead of competing with other resorts to be the region's spa capital, the association says the spa industries in Singapore, Langkawi, Phuket and Bali should work together to grow Southeast Asia as a preferred spa destination.
And in the light of growing demand, the association says it plans to launch structured training programmes to meet the manpower shortage in the industry in Singapore.

Singapore 06/05/2005


 * Although the article is slightly dated, it provides some information about the local industry.

- wong chee tat :)

Spas take off in Asia

Spas take off in Asia
Healthy living is back in style in Asia, which means a revival of ancient Asian wellness techniques - and an explosion of spas.

By Sheridan Prasso, Fortune contributing editor
August 21, 2009: 10:13 AM ET

HUA HIN, Thailand (Fortune) -- Yue-Sai Kan -- one of the most recognizable women in China with a cosmetics empire and her own TV show -- often needs to get away from the grueling pressures and polluted skies of Shanghai and Beijing, where she lives.

Her refuge of choice? A health spa in Thailand called Chiva-Som. "The service is amazing, and the food is amazing, too," she says of the wellness center in the beach resort town of Hua Hin, where patrons are offered lemongrass tea all day as a diuretic and eat only healthy salt-free, oil-free, sugar-free food. "I go sometimes more than once a year, from three days to 12, depending on what time I have. But I would love to stay six months. That would really make me healthy!"

Health is a key buzzword in Asia these days. The region's rapid growth of the last decade has meant a proliferation of fried chicken and ice cream, air pollution, and generally unhealthy lifestyles. Waistlines swelled along with GDP, and smoking and heavy drinking became fashionable among a certain segment of upwardly mobile Asians.

But increasingly, those with disposable incomes are recognizing the benefits of taking care of their health, and they're turning to spas to do it. "Beforehand there were hardly any Chinese, hardly any Asians, and now there are a lot," says Kan, who has visited Chiva-Som for more than a decade. "People get more money and they want to be more health conscious."
0:00 /3:47Tourism rebounds in Beirut

That's meant a dramatic rise in the number of spas in Asia. Chiva-Som -- which started in the mid-1990s as an exclusive club for the wealthy business elite of Bangkok -- was the first wellness spa to open in the region. For some time it had the field almost entirely to itself, but in the last several years, the number of competitors has exploded. In Thailand alone, the number of spas grew 154% between 2002 and 2007 -- from 230 to 585.

"There's been a massive proliferation in the number of spas," says Gerard Bodeker, a professor at Oxford University Medical School and author of the book, Understanding the Global Spa Industry. "There's a huge awareness in global value and interest in Asian therapies, so Asian countries are now actively discovering and promoting their own health and heritage. There's an across-the-board revival of interest in Asia in indigenous health traditions."

The result, he says, is age-old methodologies being discovered not just by Westerners interested in Ayurveda or Thai massage, but by the populations of Asia who had such treatments as part of their cultures for decades and even centuries, but rarely had a place to take advantage of them.

The Japanese have always maintained their tradition of going to onsens (hot springs) to relax, but in the rest of Asia, the traditional therapies and healing techniques often performed by village women for generations were in danger of being forgotten before the spa trend began taking off.

While shiatsu (Japanese), tui-na (Chinese) and Ayurvedic (Indian) techniques have been joining the ranks of Swedish massages at spas in the United States and elsewhere in the West, many of the traditional Malay, Vietnamese, Balinese, and even Indian health techniques are just starting to see a huge revival and adoption by Asia's emerging middle class. "It's the gentrification of their traditions," Bodeker says. "We're in the process of a big transition from simple village treatments to 21st century resort standards."

Call it a sort of globalization in reverse, or at least the opposing trend of the spread of KFCs and McDonald's franchises around the world. Despite the recession -- and in part fueled by cheaper commodity prices -- Asia now has the largest number of spas under development of any region of the world, says Bodeker. Increasingly, Asian luxury hoteliers like Aman Resorts, Mandarin Oriental, and the Banyan Tree -- a Thai luxury resort chain that opened a spa resort in Lijiang in southwest China in 2006 -- are building wellness retreats, not just adding spa facilities to their urban or beach resort properties.

In Thailand, 19% of respondents polled online by the International SPA Association said they had stayed at a destination spa, as did 21% of Chinese and 15% of Indians. And more than half of the people of those three nationalities said they had visited a day spa. (The ISPA survey, conducted in Asia for the first time last year, reaches only those with Internet access and is therefore considered a self-selected sample of the urban elite.)

While the global spa industry is valued at $255 billion annually, according to the Global Spa Summit, data about the trend in Asia is only now being gathered. A 2007 study by the GSS -- also its first-ever tracking Asian spas -- found 82 destination or wellness spas in the Asia-Pacific regions, which includes spas in Australia and New Zealand, as well as Ayurvedic facilities in India, out of a global total of 1,485 destination or wellness spas. A decade ago, Bodeker says it's safe to say, there were almost none of these facilities in Asia.

Thailand was the first Asian country to develop a spa industry, which was natural given its status as a rest-and-relaxation center for American soldiers during the Vietnam War. "There's been an effort to separate out the sex industry from the spa industry," says Bodeker. "Previously the word 'massage' was a synonym for sexual services." Plus, Thailand has a rich heritage of unique massage, herbal treatments, and meditation, a philosophical framework of mind/body balance, a well-trained service sector, and a highly developed tourism industry.

Now India, Bali, China, and even Malaysia -- with its highly lauded Pangkor Laut Resort -- are building up their spa industries, too. A destination resort called Life Wellness Resort Quy Nhon -- based on local health practices -- has even opened in central Vietnam.

At Chiva-Som, while Europeans made up 51% of the visitors in May (the most recent data available), Asians were second at 26 % of guests. And their numbers jump considerably during Asian holiday periods such as the Lunar New Year of January-February. With the recession, the fact that Chiva-Som costs about 30% less than a comparable American or European spa -- or even a regular vacation abroad -- means that many Asians are choosing to stay closer to home this year, says Paul Linder, Chiva-Som's general manager.

Americans and Europeans realize that they can combine a Thai vacation with a spa experience for the same price as a trip to, say, the Canyon Ranch or Golden Door spas in the United States, or the Kempinski St. Moritz spa in Switzerland. "People are being more careful in how they spend their money," Linder says, "but more people are coming to spend it on their bodies than on luxury products."

At Chiva-Som, treating the body both inside and out is the norm. Daily routines start with a sunrise walk on the beach or Tai Chi Chuan, then meditation, morning yoga, stretch class, and a break for breakfast. (No oil, salt, or sugar, remember?) Then there's water aerobics, regular aerobics, and an array of Pilates, kinesis, cardio, and other classes.

Most patrons schedule massage and beauty treatments for the rest of the afternoon: One daily massage is mandatory, and most massage options include adaptations of Thai massage techniques. With that kind of regimen, even the most unfit and overweight urban Asians can't help but get healthier -- and feel inspired by their own traditions while they're doing it.


- wong chee tat :)