As Southeast Asia emerges as a wellness powerhouse, small enterprises are proving to be the region’s most dynamic force. At the recent event on Regional Policy Consultation on Health & Wellness Tourism Supply Chain in ASEAN (May 28, Bangkok), Dr Prem shared insights on how micro and small wellness tourism businesses can drive inclusive growth.
With global wellness tourism projected to surpass US $1 trillion in 2024, and ASEAN’s US $51.5 billion wellness market growing at 12.7% CAGR, SMEs are positioned to capture the demand for authentic, regenerative travel experiences. Here are some vital insights.
The Wellness Gold Rush: Why ASEAN SMEs Are Poised to Lead
Wellness is no longer a niche—today it’s a core driver of tourism value. Wellness travelers consistently outspend conventional tourists by 41% internationally and 175% domestically. In parallel, the ASEAN wellness tourism SME sector is poised to capture a bigger share.
Why? Because 97% of ASEAN businesses are MSMEs (WEF), and the most in-demand wellness experiences like local healing, nature immersion, spiritual retreats, and other activities are inherently small-scale.
This is the opportune moment for wellness tourism SMEs rapidly innovate, personalize offerings, and foster deep community engagement, giving them a natural edge in this evolving landscape.
From Village Spa to Global Brand: The Power of Small & Authentic
Authenticity is the new currency in wellness travel. Tourists are seeking experiences rooted in local wisdom and culture, an area where SMEs excel. In Thailand, the largest spa chain controls only 3% of market share, while thousands of independent operators thrive.
Success stories illustrate this trend. The Bumi Sehat Birth Clinic in Bali began as a grassroots initiative and now attracts international wellness tourists. Thailand’s Siam Wellness Group expanded from a single spa to 40+ outlets without sacrificing local identity. In Cebu, a husband-wife duo transformed a jeepney into a mobile reflexology lounge viral on TikTok, now serving thousands monthly. For SMEs, “small” is not a limitation but a competitive strength. There are numerous such case studies.
Digital Leapfrogging: How SMEs Are Skipping to the Front
ASEAN’s US $263 billion digital economy empowers SMEs to reach wellness travelers globally without large marketing budgets. Micro-operators are using TikTok to promote forest-bathing retreats, Instagram to sell herbal wellness teas, and WhatsApp to deliver virtual breathwork sessions.
During COVID-19, many village yoga shalas pivoted to online formats, gaining global audiences. This digital agility allows SMEs to scale impact without scaling overhead—a model that aligns perfectly with wellness travelers’ hunger for personalized, story-rich experiences.
Regenerative Wellness Tourism: The Next Big Export
Today’s wellness travelers seek transformation not just relaxation. Regenerative tourism, which improves both visitor well-being and destination health, is emerging as a defining trend. Consider Bali Silent Retreat Farm Loop, where guests plant rice and mangroves, contributing to ecosystem restoration while participating in meditation and yoga.
In Thailand, a 7-day reef restoration retreat in Sabah offsets more CO₂ than the flight emissions to get there. Such experiences command premium pricing. More importantly, they align with the values of younger travelers: 86% of under-40s globally prefer travel that benefits people and the planet.
For SMEs, embedding regenerative elements into wellness offerings is not optional it’s a pathway to relevance and growth.
From Micro to Mighty: Funding & Scaling Strategies for Wellness SMEs
Scaling a wellness SME requires more than vision—it requires access to capital. Traditionally, this has been a barrier. But new models are emerging. ASEAN Wellness SME Bonds and Community Equity Co-ops allow micro-operators to access funding while retaining local ownership.
Digital wellness ventures like Naluri (Malaysia) raised US $14.9 million by demonstrating measurable health outcomes.
The lesson? Scaling doesn’t mean building a corporate giant. It means replicating high-integrity, community-rooted models across new markets and channels. SMEs that embrace this mindset—and measure both financial and wellness impact—are the ones attracting forward-thinking investors.
The Challenges Wellness Tourism SMEs Must Navigate- How to Overcome Them
While ASEAN wellness tourism SMEs are riding a wave of demand, several obstacles can hinder their growth:
Access to Finance
Many SMEs struggle to secure affordable financing. Traditional banks view wellness businesses as “non-essential” or too risky. Though models like Wellness SME Bonds are emerging, there is still a gap in awareness and availability of impact-driven capital. SMEs must proactively explore alternative funding—impact investors, blended finance, community equity models.
Certification & Compliance
Regulatory frameworks are fragmented across ASEAN. Very few ASEAN hospitality assets currently carry any wellness certification. SMEs often lack clarity on which certifications to pursue (HEAL Index, WELL, LEED, Halal-Wellness) or how to navigate compliance. Here, training and shared ASEAN guidelines can help level the playing field.
Digital Skills Gap
While ASEAN’s digital economy is thriving, many rural or micro SMEs lack the digital marketing and data skills needed to compete online. With 20% of ASEAN Gen Z travelers deciding trips via TikTok, SMEs need targeted training in mobile-first marketing, e-commerce, and influencer collaboration.
Workforce Development
Scaling wellness offerings sustainably requires a skilled workforce. Yet ASEAN wellness SMEs often face shortages of qualified therapists, yoga teachers, nutritionists, and regenerative tourism guides. Partnerships with vocational institutes and masterclass providers (such as Dr Prem’s wellness masterclasses/training workshops) can bridge this gap.
Risk of Greenwashing
Finally, SMEs must balance storytelling with integrity. Consumers are increasingly savvy and will reject inauthentic “green” or “healing” claims. The path forward is transparency, measurable impact, and embracing certifications.
The SMEs that will succeed are those that view these challenges not as obstacles, but as strategic priorities to be addressed through capacity-building, partnerships, and credible positioning.
Shaping Policy with Purpose: Dr Prem’s Vision at the ASEAN Wellness Tourism Consultation
At this pivotal event, Prem Jagyasi delivered a cornerstone presentation that directly addressed the region’s core challenge: how to position wellness SMEs as global leaders in an increasingly crowded market. Dr Prem emphasized that wellness SMEs must not just survive; they must scale with soul, guided by structure, strategy, and story.
In his address, Dr Prem laid out a framework that resonated deeply with policymakers and SME leaders alike:
- Positioning ASEAN SMEs as “microgiants” capable of delivering premium, regenerative, and culturally-rooted experiences.
- Co-creating unified certification systems to elevate global credibility and consumer trust
- Embedding AI-powered personalization to transform wellness delivery from intuitive to intelligent
- Designing cross-border collaboration models that merge indigenous modalities—like Thai massage, Indonesian jamu, and Indian Ayurveda
- Aligning wellness tourism with regenerative goals, ensuring benefits extend to both visitor well-being and destination ecosystems
Dr Prem’s insights clarified the potential for ASEAN wellness tourism, guiding stakeholders to visualize a realistic path forward, combining cultural heritage, digital agility, and structured growth. He focused on shaping discussions on collective branding, capacity building, and the undeniable role of SMEs in regenerative travel ecosystems.
The Future of ASEAN Wellness SMEs: Trends to Watch in 2025 and Beyond
ASEAN’s wellness SMEs are entering a phase of accelerated innovation, driven by changing consumer behaviors and policy momentum. Several trends will define their competitive edge:
Women-Focused Wellness
Women,especially those 50+, are driving a major shift in wellness travel. 65% of women over 50 now prefer solo or women-only wellness tours. This opens new markets for SMEs offering retreats focused on active aging, menopause wellness, confidence coaching, and sisterhood experiences. Examples include women-only yoga treks in Chiang Mai or menopause-support workshops in Bali.
Spiritual Tourism Surge
Spirituality is entering mainstream wellness tourism. The Asia-Pacific spiritual (religious) tourism market is growing at 11.4% CAGR, projected to reach US $23.3 billion by 2034. SMEs are perfectly positioned to tap this demand through immersive, small-scale offerings such as silent temple stays, forest pilgrimages, and energy-healing retreats. These experiences require cultural sensitivity and authenticity, two core strengths of locally rooted SMEs.
TikTok-Driven Rituals
Social platforms—especially TikTok—are shaping wellness demand in real time. Trends like “dopamine detox,” sound healing, and breathwork micro-retreats are driving surges in bookings. For example, wellness retreats in Bali see heavy booking while trending on TikTok. SMEs that master this short-form storytelling format will capture younger travelers who prioritize experiential wellness.
Certification as Differentiator
As the market matures, trust will become a key differentiator. SMEs that embrace credible certifications such as the emerging HEAL Index (Health impact, Environmental regeneration, Authenticity, Local share) or SEA-WELL™ standards, will be positioned as leaders in regenerative wellness. These frameworks were spotlighted at the recent ASEAN Wellness Tourism Policy Framing event, signaling likely future alignment at policy level.
AI-Enhanced Personalization
The next frontier for wellness SMEs is AI-driven personalization. Tools that analyze biometrics to recommend custom breathwork, circadian-aligned spa treatments, or regenerative dining options are already piloting in select ASEAN resorts. SMEs that adopt these technologies can offer premium, deeply personalized wellness journeys that drive loyalty and higher margins.
Cross-Border Collaboration
Finally, expect to see more cross-border wellness collaborations in ASEAN, for example, Thai SMEs partnering with Ayurvedic experts from India or Indonesian SMEs integrating Japanese forest-bathing techniques. The region’s cultural diversity is its strength; SMEs that create transnational wellness narratives will attract global attention.
In a nutshell, the SMEs that will thrive are those who move beyond static spa offerings to experiential, personalized, regenerative wellness journeys, rooted in local culture but optimized for global demand. The coming years represent a rare window for ASEAN wellness entrepreneurs to lead globally by innovating authentically.
Leverage Dr Prem’s 25+ Years of Wellness Expertise
For wellness SMEs aiming to scale in this dynamic landscape, expert guidance can make a transformative difference. That’s why Dr Prem’s wellness consultancy services are invaluable. With 25 years of experience, over 1,000 keynote speeches, and a rich history of curated wellness masterclasses, Dr Prem provides tailored coaching and training for wellness SMEs to design impactful, regenerative tourism offerings, build trusted brands, and access global markets.If you aspire to create a brand of distinction and prestige, let Dr Prem guide your vision. Contact Dr Prem today.
