TravelDailyNews: What are your estimations for the spa industry in India in 2007?

Joseph Polito: We hope to have at least 4 spas fully operational in India by the end of 2007. There is certainly a niche to fill as many hotel companies and developers lack the expertise, resources or experience in this very specialized industry. Some just don’t have the time or desire to manage there own spas. There are also manpower challenges in India where finding therapists is a huge obstacle. With our training center and pool of therapists we can easily cope with this. In addition, the companies outside India have little experience working in this unique market. With my years of experience with Oberoi group we feel this is a definite advantage over our competitors.

TDN: What kind of products and methods do you use in your spas and what is your opinion for the spa treatment methods in India?

J. P.: Mandara is fast becoming the largest Spa brand in the world (if not already). There is already huge public awareness and we see this continuing in the future. Generally Mandara would be considered our pampering spa brand while Anantara offers a more holistic approach. We will continue this strategy in India as well as adding indigenous therapies like Ayurveda in our Indian Spa's.

TDN: From which countries and regions does your clientele come from in your India facilities? Which market is of great importance for Mspa International and why?

J. P.: Our first Spa opens outside Mumbai in April, so we do not have any historical data of geographical origin. The primary source of business is generally from within the hotels where we operate. One only needs to see the increase in arrivals to India, average hotel occupancy and room rates over the past 3 years to see the potential. There will also be strong growth from domestic external guests as the middle class grows and NRI¹s return home there will be a big desire for spa services as the market becomes more officiated. The