Up Close The State of the Industry Report ’05

by Judie Bizzozero

Welcome to our annual State of the Industry Report, a comprehensive analysis of the 2005 indoor tanning season. This year is turning out to be another pivotal year, as the industry experienced yet another soft year—and everyone from salons to manufacturers and suppliers felt a pinch. The following report takes an up-close look into a number of issues that influenced the industry as a whole and provides an in-depth look into what is occurring at the salon level.

First and foremost, it goes without question that the $5 billion indoor tanning industry remains strong. The industry was born during recession in the early 1980s when gas prices were high due to the Iranian oil embargo, the prime interest rate was 20 percent, unemployment was high and consumer confidence low. Since then the industry has survived a couple of wars and a few more recessions and still is providing healthy-looking tans to nearly 30 million people each year.

Every industry experiences peaks and valleys; the key to survival is a solid business plan that can be adapted to the changing tide. War, weather, increased gas prices and an unstable economy all were cited as reasons for another soft season. On the flip side, the industry did a much better job of delivering a professional message about sensible, moderate and responsible tanning. While we did endure the seasonal attack from the anti-tanning coalition, we also received probably the highest amount of positive press regarding the benefits of tanning in decades.

It’s no secret that the past few years have been make-or-break years for many salons nationwide. Many had high hopes that 2005 would be the rebound year, but a majority of salons reported that foot traffic was down and sales were flat to a little above par. (A fair number of salons did see a turnaround in 2005, reporting more customers and higher profits, and a good number expanded or opened additional locations.)

This year in particular, the pinch was felt across the board with equipment manufacturers, suppliers and distributors all vying for salon dollars. Decreased margins and intense competition made this season especially difficult for the smaller distributors. Large, full-service distributors were affected as well; however, they didn’t feel the pressure as badly as others because they maintained solid salon relationships and offered equipment, lamps, lotions and supplies as well as customer service and financing.

Some manufacturers also felt a squeeze as the majority of salons chose not to purchase as much new equipment as in years past. Manufacturers also incurred increased labor and transportation costs as well as a fluctuation in the euro for those that import equipment.

Of all the variables, salons cited weather and gas prices as the worst culprits.

The West Coast experienced an unusual amount of rain in January and February that caused flooding and mudslides. Heavy snow and ice storms pelted the Midwest and the East Coast.

The Southeastern and Mid-Atlantic states still were feeling the sting of the ’04 hurricane season and the prediction of a very active ’05 hurricane season.

High gas prices contributed to less foot traffic because consumers were hit in the pocketbooks and forced to eliminate a few luxuries. However, a number of smart salon owners realized that you can’t market a luxury during a recession. They shifted to a value-driven marketing plan that basically said: “Can’t go on vacation this year? Take a break at my salon.” By doing this, they retain customers and can upsell them when the economy picks up.

While the indoor tanning industry is not recession-proof, it fares better than other industries because it is a vanity-driven business. It is a continually growing industry able to survive peaks and valleys because tanners will cut other lifestyle corners to maintain a healthy-looking glow. Smart salons will succeed by upgrading equipment, adding ancillary services and attracting new customers. Experts agree that to be competitive, salons must invest back into their businesses and upgrade equipment.

The U.S. total economic impact of professional indoor tanning salons equates to $5 billion annually. There are approximately 25,000 professional indoor tanning locations and another 20,000 to 25,000 locations such as health clubs, spas, video stores and beauty salons that have one or two tanning units.

The majority of indoor tanning facilities in the United States are small businesses, and more than 50 percent of them have female ownership, compared to 25 percent of businesses in other industries, according to the U.S. Census. Indoor tanning also provides jobs for approximately 160,000 employees annually.

The Midwest and Southeast have the highest number of tanning salons per capita, with Ohio, North Carolina, Michigan, South Carolina, Illinois, Indiana and Florida home to the most. Last year, Florida and the Northeast grew at record pace thanks to a population increase. This trend continued in 2005 with more salons opening or changing hands in New Jersey, New York, Connecticut and Florida. The Mid-Atlantic states also boasted significant growth while Washington state experienced a rebirth in the Northwest.

While the majority of freestanding tanning salons have at least 10 rooms, the trend is shifting toward larger salons with more space and services. In today’s tough economy, opening a salon requires a thorough plan and a large financial outlay.

It is estimated that it requires about $250,000 or more in initial investment to properly outfit a standard 10-room salon in today’s market. In 1982, the initial investment was about $30,000. This number is up a bit from 2004 due to increased construction and fuel costs, as well overall labor and staffing increases.

Last year’s trend of mega-salons, chains and franchises acquiring independent salons continued in 2005. There are a number of salons that control the marketplace and they continue to expand and update with new equipment. However, the same opportunity exists for new independents to step into existing salons for a reasonable price. The salon, equipment and customer databases already are in place; all they have to do is upgrade equipment, redecorate and retool. They also avoid large build-out costs and months of downtime by purchasing an existing salon.

Industry insiders predict that consolidation will continue in larger markets but not in smaller, rural markets that don’t have the populous to support bigger salons. They also agree that the number of first-time salon owners increased in 2005 and expect that to continue into 2006.

It is important to note that many areas are saturated with tanning salons, which makes competition harder. This means salons will survive or die. It’s a blunt fact, but it happens in every industry and is a natural “thinning of the herd.” Some salons will be sold or just close their doors. Industry experts agree that the indoor tanning industry traditionally has a 20-percent attrition rate.

Today’s salon owner is a professional with a long-term commitment to the future of the tanning industry. Statistics support that the average salon has been in business for about 10 years; however, some salons have experienced a turnover in ownership. The majority of growth is from individuals staying in the business longer, which equates to more maturity of ownership, experience and stability.

Veteran salon owners with sound business plans know how to ride out the wave and have diversified their businesses to include some sunless or day spa services. It is important to remember that tanning is first and foremost a vanity-driven business. It offers people a way to look good, feel good and relax while achieving that goal. Salons have to provide outstanding service with top-of-the-line equipment and be aesthetically appealing in order to retain customers and capture new ones for next season.

Successful salon owners keep their fingers on the pulse of the industry and are in the salons to oversee the business. Too many salons have failed over the years because of absentee ownership.

Statistics reveal that salon owners are taking a more proactive and professional approach to running their businesses. For example, six years ago only 64 percent of salons had professional certification; today, 97 percent are certified. Additionally, 99 percent of salons participate in ongoing education, provide educational material to clients and require parental consent. This amounts to a more professional and educated industry promoting sensible, moderate and responsible tanning.

Salon owners must identify customer demographics specific to their locations in order to capture sales. This is accomplished by analyzing the market to determine the potential number of tanners in an area and implementing a proactive marketing program that draws in customers.

As of press time, there were approximately 297 million people living in the United States. As an industry benchmark, we estimate that 10 percent of the U.S. population will tan indoors annually. That means that 29.7 million Americans—nearly 30 million—will tan indoors in 2005, up from 27 million in 2002. Traditionally speaking, the Midwest and Southeast have more tanning customers because of the large number of tanning salons located in those regions.

The average indoor-tanner profile has remained constant since the industry’s inception nearly 30 years ago. The majority of those who tan indoors continue to be in the 18-49 age group, 70 percent of which are women and 50 percent of which are women ages 20-39. There also has been a continued increase in tanning within women ages 40-49 as traditional tanners move into this age bracket. Of particular importance is the baby-boomer tanner, as they have different tanning goals and skincare needs. Not to be overlooked is male clientele that accounts for about 30 percent of the market. While this percentage may not be the norm for every salon, it is a segment that is growing, as more men want a bronzed body and professional skincare products.

Today’s customer demographic also contains one of the highest service-based spending groups—a combination of the baby-boomer generation and the maturing Generation X group. Salon owners must have a specific marketing plan to attract these dollars.

Constantly evaluating your demographic is crucial. A prime example is the following: Salon A’s monthly report reveals that younger tanners who spend less on lotions and accessories are overtaking the 25- to 35-year-old category. The salon owner changes the marketing strategy the next month to attract that demographic with more disposable income. The result was increased profits and a wider audience to market.

To sum it up: Salons that sit back and wait for customers to come to them will come up short while salons that aggressively market to their demographic will reap rewards.

Tanning equipment, lamps and lotions probably are the top three components that affect the inner workings of the tanning salon. This section takes a look at a typical salon and examines how those components fared in 2005.

Today’s average tanning salon has on average a minimum of 10 pieces of equipment and provides three to five levels of tanning. Many salons also are marketing sunless as a tanning level and investing in either a stand-up spray booth or handheld system. A typical 10-unit salon may feature one big bed, two midrange or premium beds, a UV standup, five entry-level beds and a sunless unit. (These are conservative estimates since there are a large number of mega-salons that house 20 or more tanning units in one location.) This year, 55 percent of salons reported an average single-session price of $7; only 4 percent charged $5 or less.

Equipment is the most important and expensive purchase a salon owner will make, with pricing ranging from $2,900 for entry-level units all the way to $40,000 and higher for high-end equipment such as combination beds, big beds or high-pressure units. Our research estimates that there are more than 250,000 tanning units operating in professional salons. Averaging the cost of a tanning unit at around $7,000 equates to approximately $1.75 billion worth of equipment in the U.S. market.

Choosing the right equipment mix can be overwhelming for the first-time salon owner, which is why it is so important to identify your customers’ needs and pick the proper mix of equipment to serve your clientele. Do they prefer 9-, 12-, 15-, 20- or 30-minute sessions? The choice is yours to make, but experts agree that salons should offer a variety to suit every customer. Keep in mind that the most popular session time continues to be 15 minutes since it allows clients to relax and enjoy the tanning experience.

Over the years, advancements in equipment technology provide a better tan in less time, and the industry continues to see commercial tanning units evolve from 32-lamp units to 50-lamp units and higher.

The 2005 tanning season also saw increases in improved technology and increased tanning performance and strikingly handsome units housing enhanced features such as ergonomically correct positioning, sound systems, cooling mists, aromatherapy mists and multimedia.

Equipment makers reported steady growth in 2002, 2003 and 2004 due in large part to new salons coming into the market and veteran salons upgrading equipment as technology evolved. The past few years also gave way to salons expanding locations; however, the soft economy affected many expansion plans in 2005. Out of the 84 percent of salons that said they planned expansions, only 19 percent indicated it would occur this year. This number remained relatively the same from 2004, but it does not mean salons didn’t purchase new equipment.

Some industry insiders suggest that in 2005 salon owners wanted more bang for the buck when it came to purchasing equipment. This meant that some opted for more entry-level and medium beds over the larger units so they could replace more units. That’s not to say the luxury beds didn’t sell in 2005—they did, especially to new salons and existing salons that realized they have to offer upgrade equipment with all of the bells and whistles to stay ahead of the competition. Additionally, many salon owners we spoke with are planning on adding high-end units for the 2006 season.

While we’ve focused on new equipment, used tanning units have their place in the market. The majority of used equipment can be found in the lower-end salons, nail salons and business that are not concentrating on tanning as their primary source of income. But one thing experts agree on is the fact that nobody is going to compete in today’s market with used equipment.

While lamp sales are steady every year, 2005 saw a healthy increase for two reasons: 1) salon owners replaced lamps more often instead of buying new equipment, and 2) salon owners finally realized the importance of rotating lamps for optimal tanning results.

Over the past few years, lamp suppliers have offered some new innovations including dual-phosphor lamps, twisted glass tubes, technology that virtually eliminates end blackening and lamps that produce never-before-achieved levels of performance. These technological quests continued in 2005 with makers focusing on balancing the distribution of heat in the lamp and extending the service life of the lamp. Suppliers also diversified their offerings to include more vertical applications for stand-up tanning units.

At the salon level, lotion sales remained on track, with 52 percent of salons reaping 10 percent to 24 percent of their overall monthly revenue from lotion sales. In 2004, 49 percent earned that. Only 12 percent of salons reported that lotions accounted for 30 percent or more of their monthly sales. This number was even with 2004.

Salons attributed increased lotion sales to better products, reasonable price-points, innovative packaging and more manufacturer and distributor training symposiums and in-store selling strategies.

They also raised the dollars-per-customer average by creating a reason for tanners to come to the salon. Savvy salon owners did this by offering well-constructed tanning packages—in other words, creating packages that require customers to adjust their schedules to you as opposed to the other way around. An example of a good package is 30 days of tanning for a certain amount of money; this requires a new purchasing decision in 30 days. Conversely, if you sell 30 tans for a certain amount of money, the customers feel like they have to use every single one of them.

Remember, the customers are yours to keep—not someone else’s to take. Retain them by being proactive and staying ahead of the curve.

The sunless segment continues to roll on as the fastest-growing area in the indoor tanning market. In 1999,we identified it as a segment to watch because it offers indoor tanning salons a new way to diversify their operations and reach new generations of tanning clients. In 2000, the market really began to take off when salon operators realized that sunless could open the doors to a limitless market.

Five years later, sunless is still going strong because it offers a way for salons to satisfy the needs of their regular clientele who want a quick touch-up to their UV tan and a way to provide a cosmetic tan to those who choose not to tan or cannot achieve a tan indoors or outdoors.

Like it or not, changing customer demographics is another reason sunless has become popular. Baby boomers—who were some of the industry’s early-generation tanners—are beginning to reduce exposure indoors and outdoors.

What was once an everyday or every-other-day customer now comes in once or twice a week. However, they still crave the tanning experience and want to look good and feel good. Salons that add sunless can keep these customers.

Sunless’ numbers are staggering, especially in light of—or perhaps because of—the struggles of the industry in the post- Sept. 11 economy: 40 percent of U.S. tanning salons offer at least one sunless booth, and 22 percent offer sunless airbrush or turbine tanning, according to results from LOOKING FIT’s 2005 Top 250 Salons survey. This represents a 10-percent and 6-percent jump, respectively, over the previous year.

Salons that have added sunless services report an increase in traditional UV-tanning sessions by as much as 30 percent after they introduced sunless services. In fact, many salons nationwide told LOOKING FIT that sunless services helped them overcome this year’s soft season.

Especially in recent years, salon owners have seen an explosion of manufacturers offering affordable sunless stand-up equipment, sunless airbrush and high-volume/ low-pressure (HVLP) turbine equipment, sunless solutions, and sunless lotions and aerosol sprays.

The allure of sunless also is increasing from the customer’s perspective. There is a greater variety of retail sunless products that yield natural-looking, long-lasting tans. Also, session prices for booth and handheld applications are dropping, and the steadily improving technology of the solution is leading to more realistic results. However, salons must be careful not to undercut their profits by dropping prices too low. The cost of solution used per customer as well as labor, electricity and cleanup should be factored into the selling price.

It is important to state that there is a learning curve with sunless, and salon owners must understand the business and choose what is best for them. Is there enough space for a stand-up unit? Should a handheld unit be added? What is the return on investment? These questions need to be answered before making a purchasing decision.

Many salons are opting for stand-ups and handhelds because they complement each other. Many start with handheld, then add a standup to the mix. Additionally, a handheld unit can touch up hard-to-tan areas such as hands, feet, elbows and wrists that stand-ups don’t effectively address.

Stand-Up Spray Booths Stand-up spray booths continue to be the most widely used sunless equipment in salons. Consumers like them because they can get tan in a matter of minutes; salon operators like them because short session times means they can tan more clients per unit per day. Sunless stand-ups often take up the same space as a UV-tanning unit, so salons can maximize their space.

Technology in sunless spray booths is vastly improved. Some are fully automated including voice commands and touch-free technology; some have the option of carrying more than one type of solution at once, enabling salons to serve a wide variety of clients more easily. Additionally, many of today’s stand-up units are self-contained or require very little extra plumbing or electrical.

Manufacturers have had years to refine their products, and they know salon owners are shopping around for the best units at competitive prices. In the past, salons needed an investment of at least $30,000 to purchase a sunless stand-up spray booth. Times have changed. Today’s sunless stand-up equipment can still be bought for $30,000 equipped with all of the bells and whistles; however, more players have entered the sunless market offering salons high-quality booths at more affordable prices. Some units are available for as low as $12,000, which allows more salons to enter the sunless competition.

And as a finishing touch, today’s sunless booths have evolved on the outside too. Their sleek designs provide an attractive fixture in any salon.

Handheld Units

Airbrush or turbine (high-volume, low-pressure) units allow salons an affordable way to enter the sunless market. These handheld units are priced as low as just a few hundred dollars to a thousand or higher for a turbine system.

These systems can be purchased at a fraction of the cost of stand-up units, making them affordable for a large number of salons. Salons also can get up and running quickly and easily, leading to a rapid return on investment. The salon also can charge a premium for the service because it requires the constant attention of a technician who applies the sunless solution to the client.

Sunless airbrush machines are driven by an air compressor and deliver a concentrated focus of spray solution. Airbrushing can take up to 20 minutes or more because the technician covers the client’s whole body, including delicate and hard-to-tan areas, with great detail.

Proper staffing is essential, however, if a salon is going to offer this service because airbrush is extremely labor-intensive. Many busy salons are forced to hire an additional employee because they can’t be airbrushing a client, cleaning beds and answering phones at the same time. Operator fatigue also comes into play if a salon has a steady airbrush clientele. Salons must take note to calculate the true cost of adding handheld. This includes the true labor cost and return on investment.

By contrast, turbine applications are much quicker thanks to the high volume of low-pressure “soft” airflow that allows solution to cover a greater area of the body in minutes. However, since these HVLP systems cover so much so fast, sometimes they aren’t suited for body detailing. Some turbine spray guns can be adjusted to spray to small diameters or can be switched entirely to a gun made for body detailing.

Also, manufacturers are beginning to create hybrid handheld units to blend the best of airbrush and HVLP/turbine.

Today’s handheld equipment is shrinking in size, making units more portable while maintaining their effectiveness. This allows salons more flexibility in terms of where to locate the airbrush or turbine, and also to use the freed space for other profit centers.

Manufacturers are addressing noise concerns as well. Improved technology in the machines and the advent of noise-reduction cabinets have done well to quiet the airbrush or turbine sunless-tanning experience. As airbrush and turbine equipment become smaller and quieter, they also are more efficient.

Overspray has been a growing concern in the salon environment because it is simply wasted solution. It leads to greater clean-up demands from salon staff and higher costs to the salon owners who are forced to order solution more frequently.

Manufacturers have invested lots of research and development into addressing the issue of overspray and produced a number of products to alleviate this problem. Less overspray means the solution—and the investment in solution—goes further.

While handheld systems don’t have the same privacy factor as stand-up units, customers don’t seem to mind. Many enjoy the personal attention and detail from technicians.

Solutions Manufacturers are also are devoting more time and money into research and development of solutions. Today’s ingredients are better than ever, and there are more solution varieties to give salon owners more options for customers.

DHA is available in varying levels in different solutions to cater to all skin types and desired darkness. Erythrulose also is used in some solutions. Four to five times the cost of DHA, erythrulose works synergistically with DHA to give a more natural-looking and longer-lasting tan.

Some solutions contain cosmetic bronzers that give an instant tan color until the DHA begins to develop two to four hours later; other types of solutions, often called “clear,” come without those cosmetic bronzers to ensure there is no staining or streaking. Solution vendors often provide both types to appeal to a wider range of sunless tanning needs.

New sunless spray solution is loaded with the best nutrients, moisturizers and other skin-pampering ingredients such as aloe, vitamins, hyaluronic acid, tyrosine and CoQ10. Solution makers are paying more attention to fragrances too.

Retail Products If a salon is going to offer sunless, it must do so with a complete range of retail products that address the sunless tanning process from A to Z. This provides the salon with a complete sunless program to complement its UV program.

The quality of sunless retail products has improved so dramatically that this segment has expanded beyond lotions to include foams, pump sprays, mousses and aerosols—plus specialty products such as shower gels, moisturizers, shaving gels and more. Salons have a captured market and should be ringing up sales on the products that people use in their daily routine.

New ingredient and formulation technology has allowed manufacturers to reduce or eliminate staining and streaking, enliven the sunless tan’s color and extend the life of the tan.

The maturation of the sunless industry has paved the way for a variety of pre-tan and post-tan products, in addition to traditional exfoliators and tan-extending moisturizers. And while they were introduced several years ago, single-use packages of sunless-related products have been on the rise.

Towelettes loaded with sunless ingredients provide a convenient, relatively mess-free way to apply sunless solution. Many single-use products are large enough for one full-body application.

Also, cleansing towelettes can be used to wipe impurities from skin to ensure spray solution has an even canvas on which to impart a golden, sunless glow.

In the case that a sunless product is applied where it’s not wanted, several vendors provide correctors that remove stains.

Offering a complete lineup of sunless products—from the application to take-home products—allows salon operators to market the total sunless experience and keep clients coming back for more.

Cash has been king since 2001 because many salon owners have been cautious when it comes to large-item expenditures. Continued conflict in the Middle East, higher gas prices and another season of poor weather all converged to make the “perfect storm” for 2005.Yet, things are looking up as a whole, and many are predicting the 2006 season as one that will see salons parting with their much-coveted cash and an increased number of players entering the tanning market.

As mentioned earlier, it requires about $250,000 or more in initial investment to properly outfit a standard 10-unit salon in today’s market. Industry statistics reveal that the average equipment lease or loan transaction is approximately $50,000, higher than $15,000 five years ago. This number is up from last year by about $15,000 and can be attributed to higher costs and salons purchasing higher-end beds or sunless units to compete in their markets.

According to industry lending experts, 20 percent of all transactions are for start-up salons. This number is historically accurate, as we estimate about a 20-percent attrition rate for salons each year. Interestingly, lenders noticed an upswing this year in the number of existing salons expanding locations and more salons opening with 15 or more units.

As in years past, approximately 85 percent of equipment sales are financed through banks, leasing companies, equipment manufacturers or personal savings. Nearly 95 percent of all funding is earmarked for new equipment, and about 50 percent of that number to a leasing option. In 2005, the average lease term jumped from 36 months to 60 months.

Experts cite pure economics for the longer terms: It is very difficult for a salon to pay back $100,000 in three years, and financing for five years is more realistic in a business plan.

Last year was an interesting year for lenders, as bad debt reared its ugly head thanks mainly to the multiyear economic slump that forced poorly-run salons to sell or close their doors, leaving lenders and customers out in the cold.

For the 2005 season, industry veterans agree that bad debt lessened due to a more professional salon operator making a long-term commitment to the industry with a sound business plan. There continues to be an influx of financially strong people entering the industry who have been successful in other businesses. Lenders examine a host of variables and dig deep into credit histories before doling out money.

Insider predictions for the 2006 season point to this trend continuing as the more professional salon owner enters the industry, bringing more stability within the economics of indoor tanning. Many will be financing for more equipment and buildouts because they realize they need to make an investment to make a profit.

As in 2004, this year the indoor tanning industry has continued to experience a great deal of legislative activity. At the forefront of many legislatures’ agendas was the issue of banning teens from indoor tanning. However, after much debate and industry lobbying, it appears that the legislatures came to the conclusion—in almost all cases—that whether a teen gets a suntan is a decision for parents and not government.

It is important for tanning professionals to be aware of proposed changes in order to take proactive steps and voice opinions.

The following is a recap of the activity seen in 2005. (Contact information for state/federal regulatory agencies governing tanning, links to current state regulations and a listing of state legislative hotline numbers can be found under the “Regulatory Information” section of the NTTI Web site, www.tanningtraining.com)

Bills That Failed

Mississippi House Bill 645 died Feb.1. This bill, introduced Jan. 12, would have prohibited the use of tanning facilities for minors 14 to 18 years old unless written parental consent is given in the presence of an operator. Records would have been needed to be kept for these children, and criminal and civil penalties would have existed if the regulations were violated.

Connecticut Raised Bill 979 died March 22. It would have required parental consent for tanners under 16 years of age.

Connecticut Proposed Senate Bill 555 died April 4 in committee. Introduced in January, the bill would have required the Department of Public Health to establish licensing requirements for tanning facilities. It would have prohibited tanning operators from making certain health or medical claims; prohibited operators from misleading or deceiving the public about tanning devices; prohibited persons under 14 from using tanning devices without written consent of a physician; and required tanners 14-17 to be accompanied by a parent on each visit to the tanning facility.

Connecticut Proposed Senate Bill 298 also died April 4 in committee. The bill would have prohibited anyone under 18 years old from tanning indoors without written consent from a parent or guardian.

Bills That Passed

New Hampshire 729-FN was passed into law April 22, 2004, and became effective Jan. 1, 2005. The regulations address licensing requirements, age-related parental consent as well as other procedural matters. The new rules require that operators complete a state-approved training program. Each salon is responsible for maintaining a list of the facility’s operators who have been trained in accordance with the rules.

New Hampshire House Bill 168—which deals primarily with the licensure of electrologists—lowers the allowable age for tanning operators to 16 years old. The House objected to the Senate’s original amendment, so the bill was sent to a special committee for resolution. The Legislature agreed to a compromise by way of a grandfather clause: “A person age 16 or older who, prior to Jan. 1, 2005, has been certified by a program that was subsequently approved by the board shall be an operator ….” It is important to note that only those persons 16 years of age or older on Jan. 1 and who were certified prior to Jan. 1 may continue to be employed as an operator in the state’s tanning salons. The bill was signed into law July 22.

Arizona: While it wasn’t introduced as legislation, changes have been made to the state tanning rules to clean up wording and put into writing what inspectors already expect, according to an official with the Arizona Radiation Regulatory Agency. The rule revisions became law on Feb. 5, 2005. Changes include: a required 24-hour wait between tanning sessions; mandatory use of remote timers; that children under the age of 18 can tan only with written consent from a legal guardian signed at the salon; compatibility of replacement lamps with the tanning equipment manufacturer’s compatibility sheet; additional required training to be covered, such as determination of skin type and minor and consent forms; and that records of each user’s tanning visits and times must be kept for three years.

Florida: Proposed revisions of the state’s tanning rules became effective May 10. Significant changes include: the addition of definitions to help clarify the rule language; that an annual application will no longer be required; permission of individuals to use tanning devices once every 24 hours; and that sanitizers must be checked for sufficient concentrations using test strips or other devices that accurately measure in parts per million. In addition, the state’s tanning application was revised.

Nassau County (N.Y.) lawmakers on April 4 unanimously passed legislation requiring signed parental consent for tanners under 18 and requiring tanners under 16 to be accompanied by a parent.

Active Legislation

New Jersey Assembly Bill 976,which was carried over from the last session, would require that tanning facilities conspicuously post warning signs. The signage would be required to state “indoor tanning has no known health benefits” and “prolonged exposure to UVA and UVB rays may cause damage to the skin and eyes.”

New York Assembly Bill 1599, introduced in January, provides for increased consumer-safety standards for the use of ultraviolet tanning facilities. Of note, it requires consent of a parent or legal guardian for anyone under the age of 18. Also, A1599 requires equipment to comply with the standards in the code of federal regulations; provides standards for maintenance of equipment; and details requirements for instruction, sanitation, protective goggles, warnings signs and statements, and record-keeping.

New York Senate Bill 2602 and an identical bill, New York Assembly Bill 5733, were introduced in February. The bills would require a person to sign a written acknowledgement prior to tanning, require any person 14 to 18 years of age to have parent content, and ban minors under 14 from tanning. AB 5733 passed June 16; SB 2602 was sent to committee on June 24.

Illinois House Bill 452 has been amended from its original form to mirror already existing regulations. It would prohibit tanning for anyone under 14 and require parental consent for minors 14-18. The original bill would have prohibited anyone under 18 years old from using a tanning facility for any reason and required the tanning facility to take “appropriate steps” to enforce it.

Pennsylvania House Bill 548, introduced in February, deals with salon licensing and an inspection program.

Minnesota Senate Bill 1114 was introduced Feb. 21 to require parental consent for minors 14-18. Minors 13 and under would be allowed to tan only with written permission from a physician, and their parents must accompany them and remain at the facility the entire time.

Georgia House Bill 702, introduced March 3,would add to the list of statements required for warning signs to include information on medications and photosensitivity. The bill also requires minors 14-18 to have parental consent and minors under 14 to be accompanied by a parent.

New Jersey Senate Bill 2658, introduced June 16,would prohibit minors 14 years old and under from tanning and would require written parental consent for minors 14 to 18 to tan. An identical bill, Assembly Bill 3353, was introduced Oct. 7, 2004.

Suffolk County (N.Y.) Resolution 1789 requires written parental consent for minors 14 to 18 years old. The consent must state the period of time for which the minor is permitted to use the tanning devices, and shall not be retained by the tanning facility for a time period to exceed six months. The resolution also would prohibit minors under 14 years of age from using a tanning device unless they are accompanied by a parent or legal guardian who remains physically present at all times. Two similar resolutions were tabled earlier in the year.

Michigan House Bill 4580 was introduced March 24 to require tanners to sign a written warning statement at least once in a 1-year period. The facility would need to retain the written statement for at lease one year. For minors under the age of 18, the statement must be signed by the minor’s parent or legal guardian. The bill also gives specifications for injury reports.

Canada

Canadian Health Minister Ujjal Dosanjh on March 7 announced that amendments to the Radiation Emitting Devices Regulations (Tanning Equipment)—which modernize the current standards to address the new technology being used for today’s more powerful tanning devices—came into force Feb. 23, 2005 with their publication in the Canada Gazette, Part II.

Under the authority of the Radiation Emitting Devices Act, the Radiation Emitting Devices Regulations (Sunlamps) were introduced in 1980 to restrict users’ time of exposure to sunlamps. New technology and tanning equipment designs, in addition to recent scientific studies, showed that the 1980 requirements needed to be updated to ensure safer use of the new equipment.

The Radiation Emitting Devices Regulations (Tanning Equipment) were published in the Canada Gazette, Part I, on March 13, 2004. Following the publication, interested parties were given an opportunity to provide comments. The proposed amendments were revised, taking the suggestions of the respondents into account.

The regulations apply only to equipment sold or resold after the amendments came into force. They are not retroactive. Health Canada inspectors will continue compliance monitoring and enforcement under the authority of the Radiation Emitting Devices Act and its regulations.

This report is based on interviews and conversations with all facets of the tanning industry—salon owners, manufacturers, distributors and suppliers as well as economic experts and marketing specialists. We also used statistics gathered via the Top 250 Salons issue, industry trade expos and symposiums, the National Tanning Training Institute and the magazine itself. We thank everyone who participated and provided honest and confidential statistics.