Will Singapore’s wellness plot be a hotel game changer?
29th July 2024 Will Singapore’s wellness plot be a hotel game changer?
By Raini H.R.
Singapore is transforming a four-hectare plot into a wellness mecca. But can this ambitious project deliver both health and wealth?
SINGAPORE — From mega events to mega wellness. After witnessing the surge in hotel occupancy and rates during Singapore’s recent big-name concerts, hotels are speculating whether the city’s proposed large-scale urban wellness attraction could be its next major success.
Bids are open until October 4 for interested parties to turn a four-hectare vacant site – about seven football fields – along the Marina South waterfront into a world-class attraction centered around physical, emotional and mental wellness. However, neither hotels nor casinos (which one imagines can wreck well-being) are permitted on the site. Thereby, the attraction is a day-use only.
The Singapore Tourism Board (STB), which launched the tender, has in mind next-gen wellness offerings such as therapeutic arts, tech-based floatation and frequency therapies, and water or equipment-based fitness experiences. The venue, which may cover a maximum gross floor area of 80,000 sqm if it’s multi-level, must also feature a comprehensive calendar of high-quality wellness events to appeal to both locals and tourists.
When asked about a potential model or benchmark for the Singapore project, STB did not provide a specific example. Executive Director, World Expo and Special Projects Carrie Kwik only said, “Whether travelers are here for leisure or business, the attraction will give them more reasons to stay longer and spend more in Singapore. It will also add to the range of wellness offerings for locals to enjoy.”
On the rise
Such mega urban wellness playgrounds are actually on the rise, according to Beth McGroarty, vice president of Research at Global Wellness Institute. She points to European player Therme Group, which develops large day destinations that combine bathing, hydrothermal and spa, art and music, and other wellness experiences as “closest to the STB plan.”
With its flagship in Bucharest, Therme is expanding to Manchester, England, Toronto, Incheon, South Korea, and other locations. At press time, the group did not respond to questions if the Singapore project was of interest to it.
In a recent media release, the group said 30% of visitors to its Bucharest venue last year were from outside Romania. Bookings from the U.K. rose 240% from 2022 in anticipation of Therme Manchester opening in 2025. Interestingly, Therme Bucharest is also benefiting from a “U.K. viral trend for extreme day trips,” where guests fly to Bucharest and back in a single day. These travelers find the venue more affordable and fun than a spa at home, while Therme Bucharest encourages repeat visits with an effective calendar of events that include a Herbarium Festival and Korean Days at Therme.
An extreme day trip trend, if it emerged in Singapore, would counteract the efforts of hotels already facing criticism for high prices.
As it is, STB’s wellness plot has its share of unimpressed hoteliers. “It appears like a billion-dollar investment to manufacture wellness on a very costly piece of real estate,” said a skeptical CEO of a hotel group on social media. He added that all the neighboring countries needed to do was provide a pristine beach with crystal-clear waters for therapeutic activities like admiring the sunset. “The cost is zero!”
“Maybe we should consider repurposing one of our suburban business parks, which are presently emptying, to experiment with such new concepts. New ideas are needed to bolster Singapore’s competitiveness, but we must also find ways to lower the entry risk.”
But given that the global wellness market hit $5.2 trillion in 2022, and is projected to grow to almost $8 trillion in 2028, STB may also find itself criticized in the future if it didn’t try to corner an important market sooner.
Its proponents include Rakesh Patel, CEO and founder of ALTA Capital Real Estate, which invests in boutique hotels, wellness retreats and villa communities.”
“There is certainly an opportunity in the market for countries like Singapore to create wellness hubs,” Patel said. “Thailand is already progressing down this path, by positioning itself as a medical and wellness destination.””
“The structural growth trend is supportive, with GWI forecasting 17% CAGR for wellness tourism over the medium-term. Singapore will have to strategize on how it can create value and returns in this space. It lacks some of the natural wellness elements of other countries, for example green space in Thailand, or hot springs in Japan. Singapore should think about playing to its strengths. One element could be a broad health tech framework.”
Shifts and shakeups
As wellness changes rapidly, the key question is what to build to stay ahead of the curve.
“Our 2024 trends report show more shifts and shakeups in wellness in the last year than the last 15-20 years. Global survey after survey shows that, coming out of the pandemic, wellness has never mattered more to people, but what kind of wellness matters, and to whom, is changing,” said Global Wellness Institute’s McGroarty.
This creates a polarized wellness landscape. On the one hand, explained McGroarty, is “hardcare,” exemplified by the surge in longevity clinics and high-tech biohacking treatments, and is driven by an aging population seeking to extend their health spans, a post-pandemic demand for evidence-based approaches, and a growing male interest in wellness. With a projected value of $610 billion by 2025, the “longevity economy” is now a cornerstone of the industry, offering advanced diagnostics, experimental therapies like stem cell treatments, and a stark contrast to the more holistic “softcare” wellness offerings of the past.
“Softcare” becomes less intense, more affordable wellness that prioritizes emotional, social, and spiritual wellbeing, McGroarty added. Driven by younger generations, this movement seeks to replace self-optimization with connection and pleasure. The rise of wellness social clubs and experiential wellness destinations like Bathhouse and Othership in New York highlights the demand for social interaction and sensory experiences. By focusing on human connection and creating opportunities for shared enjoyment, wellness providers can tap into a growing market and differentiate themselves from traditional medicalized approaches, McGroarty said.
Turning to Singapore, McGroarty noted the STB plan smartly acknowledged the convergence of art, technology and wellness, which is creating a new wave of multi-sensory experiences. Powered by advancements in AI, VR and other immersive technologies, these offerings are transforming museums, hotels and spas into captivating destinations for mental wellbeing. She gave the example of Submersive, slated for Austin, Texas by 2026.
“It’s a 25,000-square-foot social bathing destination with video projection, immersive art, steam, lasers and AI technology that will use neuroscience to help visitors achieve elevated states like awe and euphoria [in rooms that evoke different aspects of the cosmos]. They estimate they will attract 200,000 visitors a year,” McGroarty said.
Clearly, offering merely a spa and a sunset is insufficient to compete in today’s dynamic wellness market.
