Victoria bets big on geothermal springs and eco-wellness

Victoria is sharpening its focus on high-yield wellness tourism, with fresh investments in geothermal hot springs and nature-based experiences aimed at turning regional landscapes into globally competitive, low-impact wellness hubs.

Strategic push to capture a booming global wellness market

Global wellness tourism continues to outpace broader travel growth, with industry assessments showing the sector nearing a 900 billion US dollar valuation in 2024 and expanding faster than mainstream leisure tourism. Recent monitoring of the wellness economy identifies North America, Europe and Asia-Pacific as the main engines of this expansion, with strong prospects for continued growth across the decade.

Within this context, Victoria is moving to position itself as a southern hemisphere leader in spa, hot springs and nature-led wellness travel. Publicly available information from state tourism and economic development agencies highlights wellness as a core pillar of Victoria’s long-term visitor economy strategy, framed as a way to increase visitor spend, extend average length of stay and disperse tourism benefits across regional communities.

Policy documents linked to the Experience Victoria 2033 plan and related tourism strategies describe wellness as an underdeveloped but high-potential segment. The plans emphasise that more luxury wellness infrastructure, stronger industry partnerships and better integration with food, culture and events will be required for the state to compete with established global spa regions.

Recent tourism statistics for the year to September 2023, cited in government marketing material, already show Victoria’s visitor expenditure rebounding to record levels. The new focus on wellness tourism is being presented as a way to consolidate that recovery while differentiating Victoria from rival destinations through its distinctive geothermal resources and temperate coastal landscapes.

Geothermal hot springs anchor a new visitor economy narrative

Geothermal bathing has emerged as the signature product in Victoria’s wellness repositioning. Peninsula Hot Springs on the Mornington Peninsula has evolved from a niche regional attraction into a flagship operation that regularly features in international spa and wellness awards. Published coverage in local and international media has described the complex as a benchmark for sustainable design and immersive, nature-led bathing experiences.

The state is now backing a network of new and expanded geothermal projects designed to build on that success. Government strategy materials reference investment support for planning works on a proposed Cape Woolamai Lodge and hot springs on Phillip Island, alongside funding to expand Peninsula Hot Springs and improve infrastructure at Metung Hot Springs in East Gippsland. The projects are promoted as key components of a broader “Great Victorian Bathing Trail” concept that links sea baths, mineral springs and geothermal spas along the southern coastline.

On the Great Ocean Road, plans for a new geothermal spa near the Twelve Apostles are being advanced by private developers with local government support. Project information states that the facility is intended to reveal an underground hot water resource and transform a classic day-trip sightseeing stop into an overnight wellness destination. The development is framed as a way to encourage visitors to stay longer in the region, diversify the local economy and set a new sustainability benchmark on one of Australia’s most heavily visited coastal routes.

Together, these projects are redefining how Victoria markets its natural assets. Rather than treating hot springs as isolated attractions, the strategy increasingly positions geothermal bathing as part of connected journeys that move visitors between coastal cliffs, forests, lakes and rural townships.

Regional eco-tourism benefits from wellness-led development

The pivot to wellness is closely tied to broader efforts to support regional eco-tourism. Investment prospectuses and regional development plans for areas such as East Gippsland point to properties like Metung Hot Springs as catalysts for higher-value, lower-impact tourism that leverages geothermal resources alongside walking, cycling, wildlife viewing and on-water experiences.

Public documents highlight how the rediscovery and development of geothermal waters at Metung, first noted in the early twentieth century, has been used to create a contemporary luxury wellness retreat that still orients visitors toward the surrounding lakes and wetlands. The project is presented as an example of how spa and wellness infrastructure can stimulate new accommodation, dining and guiding businesses in nearby towns while encouraging year-round visitation beyond the traditional summer peak.

Phillip Island’s hot springs project is similarly framed in local visitor economy strategies as a way to transition from a predominantly day-trip and event-based market to a more evenly spread, overnight-focused visitor profile. Planning materials indicate that the development is intended to operate as a year-round wellness hub, aligning with conservation goals and existing wildlife attractions while drawing a new cohort of wellness-focused travellers.

Across multiple regions, economic development agencies are promoting wellness investment as a pathway to resilient, nature-based tourism growth that can coexist with environmental protection and community priorities. The emphasis is on experiences that integrate bathing, landscape interpretation, Indigenous cultural engagement and locally sourced food and wine.

Government strategy links wellness with sustainability and investment

Victoria’s visitor economy strategies portray wellness tourism as both an economic and social investment. Official planning outlines an ambition to increase overall visitor spend while supporting jobs in regional communities and encouraging product that promotes physical and mental wellbeing for visitors and residents alike.

The Experience Victoria 2033 framework and supporting wellness investment guides stress the importance of sustainable design principles in new hot springs and spa developments. These documents urge proponents to incorporate renewable energy, careful water management, habitat restoration and low-impact architecture, particularly in coastal and forested settings. The goal is to protect the natural landscapes that underpin the appeal of wellness travel while minimising operational footprints.

To accelerate private sector participation, the state has introduced investment tools such as regional tourism funds and technical guidance for developers. Publicly available summaries of recent funding rounds note allocations for planning, infrastructure upgrades and product diversification at key wellness sites, positioning the sector as a priority within regional recovery and resilience programs established after the pandemic and natural disaster events.

There is also a clear focus on integrating wellness with other high-value segments of the visitor economy, including major events, culinary tourism and arts experiences. Strategy papers emphasise that visitors are increasingly seeking holistic itineraries, where time in geothermal pools is combined with local dining, festivals, galleries and outdoor recreation.

Positioning Victoria as a global wellness trailblazer

As global competition for wellness travellers intensifies, Victoria is leveraging its geothermal assets, coastal scenery and existing spa reputation to differentiate itself from other destinations. The state’s narrative now highlights a “uniquely Victorian” wellness journey that spans volcanic plains, mineral-rich aquifers, rugged ocean cliffs and calm coastal inlets.

Industry observers note that this approach aligns with broader international trends in wellness tourism, which are shifting away from purely indoor spa environments toward experiences that connect travellers with wild nature, local culture and meaningful rituals. In Victoria, this is visible in concepts that link bathing with forest walks, cold-water immersion, sound bathing, stargazing and storytelling grounded in Indigenous knowledge.

For investors and operators, the current policy environment signals that wellness and eco-tourism will remain central to Victoria’s visitor economy ambitions over the next decade. The state’s support for geothermal hot springs, combined with its emphasis on sustainability and regional dispersal, suggests that Victoria intends not only to participate in the global wellness tourism boom but to shape how nature-based wellness destinations are developed and managed.

Whether through a sunrise soak above Bass Strait, a geothermal retreat in East Gippsland or a future spa overlooking the Twelve Apostles, Victoria is steadily crafting an image of itself as a connected network of restorative landscapes designed for the next generation of wellness-minded travellers.