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EXECUTIVE SUMMARY

The $639 billion (€552 billion) global wellness tourism market’s annual growth rate of x.x% from 2015-2017 is more than double the x.x% growth rate for tourism overall. World travelers made 830 million wellness trips in 2017, xxx million more than in 2015— representing xx% of total tourism expenditures. Wellness tourism will continue its growth momentum as more consumers adopt wellness as a key decision driver. GWI projects that wellness tourism will grow at an average annual rate of x.x% through 2022, considerably faster than the x.x% annual growth forecasted for overall global tourism. Global wellness tourism expenditures will reach over $919 billion in 2022, representing xx% of the global tourism market.

Europe ranks #1 in the world for annual wellness trips: 292 million in 2017, up from xxx million in 2015—an x.x% annual growth rate. (Asia-Pacific ranks #2 with xxx million trips.)  Europe ranks #2 in the world for wellness travel revenues, at $211 billion (€xxx billion) yearly in 2017, up from $xxx billion (€xxx billion) in 2015. (Trailing only North America at $xxx billion/€xxx billion in revenues.)

While wellness tourism is much broader than spa tourism, spas represent a core business within the wellness tourism market. In 2017, spa tourism represented $xxx.x billion in expenditures, with xxx.x million spa-related trips taken. Spa tourism expenditures have grown by x% annually since 2015.

Purpose of the project: creation of a spa complex “Russian Bath” with a restaurant and billiard room.

The banya is a traditional Russian style steam bath. It typically has a much higher humidity than the sauna: It can be in the xx-xx% range.

The difference between a banya and a sauna: the Russian bath is a steam bath, and the Finnish sauna is dry air sauna.

In the bath: the main difference between the bath and sauna is a high humidity. The main factor in the Russian bath is steam. The air humidity here is almost the same as that outside, and the thermal conductivity of humid air is two times higher than that of dry air. By the way, that is why it is believed that the Russian steam bath is more close to the natural conditions for the human body and has a less shock effect than the Finnish sauna.

MАIN PROJECT COEFFICIENTS

The amount of necessary investment is: xxx xxx EUR. 

The Pаybаck Period for investor with a 50% share in a business will comprise x years and x months (including 1 year of spa complex construction) or x years and x months after the start of spa complex operation.

Net profit: 2nd yeаr236 642, 3rd yeаr427 675, 4th yeаr466 735, 5th yeаr – 486 876, 6th yeаr506 886 EUR.

Investor’s cash flow: 2nd yeаr – xxx xxx, 3rd yeаr – xxx xxx, 4th yeаr – xxx xxx, 5th yeаr – xx xxx,          6th yeаr – xxx xxx EUR.

The proposed business share to investor is: xx%. Below are the main indicators of the project for the investor, taking into account his share in the business.

 

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