five-star hippie

It was 11 years ago when John Spence first set foot in the sprawling Bukit Peninsula on Bali’s southern tip. He’d brought along a feng shui master with him who yielded to his inquiry to find “the most powerful piece of land on the island”. And somewhere between the beautiful Uluwatu temple and the gorgeous ravine at the cliff’s edge was where Spence finally located his spot of choice. The Englishman’s marketing skills then went into top gear and the majestic Karma Kandara Resort was the result.

This is not the beginning of our story though. The carefree Spence, showing up for our interview in a casual polo shirt after a thorough workout at the gym, happens to be a man rich in inspiring stories. His peripatetic life has encompassed a great many journeys and a wealth of experience. Born in England, Spence became both successful in India and celebrated in Australia prior to touching down in Bali, and our man still has a million more goals that he wants to achieve, including the transformation of the Bukit Peninsula into a lively destination fuelled by five-star sophistication and traditional uniqueness.

“There’s something magical about Bali. It represents the ideal combination of sophistication – international restaurants, bars and hotels – and natural attractions for tourists. Yet it’s still unique and it hasn’t lost sight of the fact that it’s Bali,” enthuses Spence while chowing down on a simple plate of fish and chips. His first encounter with the island came in 1996, more than a decade after he switched jobs and changed from being a music agent to a property salesman. His stint in the music industry had seen him work with big names such as Culture Club and Eurythmics, however this father of three doesn’t make a big deal out of it. “Those bands became famous more by accident than by design,” he argues.

So Spence left the music industry and eventually found himself making ends meet in the Canary Islands, working for an American luxury property business back in 1985. “I literally started at the bottom of the tree,” he opens up, “I was the salesman on the beach, I was the hustler.” As the company grew, he travelled around the world while working his way up to finally become the company’s managing director. “We had nine resorts in Europe and we sold them to the English and the Scandanavian markets,” he reminisces.

In 1993, Spence left the company after his proposition to become a shareholder was turned down. He then set his eyes upon the global property industry’s next big destination: Asia. India was the first country to entice Spence and his considerable business acumen and he soon built his first resort in Goa, as a part of the Karma Royal Group, despite the fact that all of the funds used to finance the project came out of his own pocket. “Yes, we were a very under-funded and small operation, very entrepreneurial, and everyone thought that we would fail,” Spence recalls. “Our big break [however] was the Indian market. Our initial goal was to sell it [the resort villa] to Westerners but we soon realised that there was huge wealth in India to be tapped, especially among NRIs (Non-Resident Indians).” NRIs are part of a large Indian diaspora working overseas, and many are engineers or doctors, meaning that they have sizable disposable incomes.

Over the course of four years, Spence followed up this success by setting up 70 offices across the globe, wherever NRIs were to be found in significant numbers. Large Asian metropolises, such as Singapore, Kuala Lumpur, Hong Kong, Taipei and Jakarta, were among these destinations. Most importantly, Spence has stuck to an uncomplicated business model all these years: find a piece of land, put together a resort master plan, sell the plan, build it and operate it. This strategy has meant that he has been able to avoid debt and instead relies on partners who fund the development by buying the villas and then willingly renting them back to temporary guests at a later date.

After India, Spence went on the lookout for beautiful locations in Asia. Bali appealed to him and his group quickly tied up deals to build the Royal Bali Beach Club in Candidasa as well as another property in Jimbaran, and the five-star Karma brand grew. “I saw a gap in the market for top-end, luxury villas and the Karma Resort in Jimbaran was opened in 2003.”

The year 2008 saw the launch of Karma Kandara at the Bukit, an area which has always occupied Spence’s thoughts. “My family and my kids love this area so much,” he states proudly. Already in the blueprint process, the Karma Royal Group is focusing its efforts on developing the Bukit and adding more attractions in order to lure more international tourists to the area. “We’re putting up a retail shopping mall in the Bukit, which will feature 30 shops and restaurants. Tourists will then not have to head through the traffic to Seminyak to shop and eat. There’ll also be new accommodation run under our group name here, set up behind [Karma Kandara], specifically an 80-room hotel.”

And the Karma Brand will continue to grow, Spence says, as another property, called Karma Agung, will soon follow suit located in Karangasem. In the meantime, Spence keeps himself busy expanding the Karma Spa chain throughout Bali and Australia, as well as developing his new Chakra resort brand in Europe. “The reason behind our expansion to Europe is so-called ‘reverse tourism’. Property there has become reasonably cheap due to the recession and we’re going to sell to the Asian market.”

When asked how all of the resorts running under the Karma Royal Group name relate to one another, Spence quickly comes out with the tongue-in-cheek phrase “five-star hippie”. “This term very much relates to myself,” he elaborates, “as I believe that often the best holiday you’ve ever had is the one when you’ve left university and haven’t got a lot of money but still get to travel around the world, sleeping in hammocks or on the beach. We’re trying to get the same magic across here, though you won’t have to crash on the sand! Borrowing from the spa idea, I am a big believer in ‘manicures and martinis’, and we are very focused on promoting health-consciousness through organic foods, decent gyms and the like. However, there should also be a balanced element of fun, including wine bars and a multitude of entertainment options.”

While finishing off his quick lunch, the amiable Spence tackles one final puzzling question, namely where his home is. “Probably seat 1A on a Singapore Airlines plane [giggles]. I was recently honoured to receive an award for being the Ernst & Young Entrepreneur of the Year in Australia, yet I’m obviously still English. I love Asia, which I have no doubt is the present centre of the planet. I guess I’m ultimately a citizen of the world.”