Parliamentary Secretary Sam Tan reply's to Parliament Questions on Spa Industry

Question No. 358 in Notice paper No. 50 of 2010 For Oral Answer

Name and Constituency of Member of Parliament
Madam Er Lee Bee Wah, Member for Ang Mo Kio GRC

Question
To ask the Minister for Trade and Industry in view of the Singapore Tourism Board's efforts to promote Singapore as a spa center (a) what steps can be taken to protect the industry from getting a bad image because of unscrupulous spa operators; (b) will the Ministry take steps to ensure that these operators lodge deposits with a licensing authority before they are allowed to operate; and (c) how can consumers be protected against businesses which solicit for clients even though they know that the closure of their operations is imminent.

Answer
The Singapore Tourism Board (STB) does not promote Singapore as a spa center, but profiles spa experiences as one of the many lifestyle options that visitors can enjoy in Singapore, alongside the myriad of retail, dining, attractions, events and entertainment offerings. STB is careful to profile spas with a proven track record that provide excellent service and a sound business model.

 Recent spa incidents did not involve visitors, but local consumers who purchased prepaid packages to be used over a period of time. The best defense for consumers, as always, is to be vigilant and consider carefully before paying in advance for services.

At the same time, there are measures to help consumers, who often complain that they bought packages under pressure, to make better choices. CASE has, with MTI’s support, recently launched the Case Trust for Spa and Wellness Accreditation Scheme to raise consumers’ awareness of spa standards and to put in place good business practices. These include giving customers a cooling-off period of at least five working days to seek full refund of payments made for packages and not selling to customers during treatment. We will also study with CASE the feasibility of adding financial soundness as a criteria for accreditation.

Consumer education and industry accreditation provide a balanced approach to safeguarding consumers’ interests. This is preferable to imposing new and onerous regulatory burdens on spa operators, which ultimately translates into higher cost for consumers. We will monitor the situation and refine our approach further if necessary.