The number of five-star hotel spas in Dubai is on track to increase by a Compound Annual Growth Rate (CAGR) of 10.7 percent to 2021, according to data released by Colliers International ahead of the 25th edition of Arabian Travel Market, taking place at Dubai World Trade Centre, from April 22nd – 25th, 2018.
According to the report, ‘Spa & Wellness Travel’, produced exclusively for ATM, the number of five-star hotel spas in Dubai will increase from 107 in 2017 to 157 in 2021, in close correlation with the emirate’s hotel pipeline. High profile openings over recent months include The Spa at Palazzo Versace Dubai and The Bulgari Spa, which will contribute to projected annual spa revenues in the emirate of USD 495 million, by 2019, according to Visit Dubai.
Simon Press, senior exhibition director, Arabian Travel Market, said: “Regionally, the spa sector is multi-faceted and sensitive to events and developments in many other sectors, including global health, beauty and wellness trends. In 2017 we saw focus increase across these areas and Dubai was quick to capitalise and innovate, with the debut of a number of luxury-branded hotel spas. However, spas are no longer associated exclusively with the luxury market. As a result, we see more choice at various price points, a diversification in treatments, competitive marketing techniques and an increase in the number of spa management courses available to professionals. In 2018 and beyond, we expect to see these trends converge, further cementing Dubai and the region’s reputation as a leading medical, wellness and health destination.”
In the report, Colliers analyzed data from spas representing 369 treatment rooms across Dubai and Abu Dhabi, highlighting nuances in demand and revenue trends.
In 2015, wellness trips to the GCC increased 44 percent and Bahrain leading growth. Bahrain also saw the highest increase in revenue over the same period, at 17 percent.
The report concluded that such performance indicates a mature market capable of absorbing new supply. Testing this, the UAE will welcome 83 new hotels in 2018, many featuring spa and wellness amenities and, across the Middle East, a further 500 new properties are due to open by 2020.
“The predicted growth in spa inventory is closely tied to the region’s hotel pipeline. Yet, unlike hotels, the report shows spas enjoy a level of resilience to increased competition and, in part, this is due to their growing appeal to different demographics and income groups – from millennials to local residents. While this has been good for the sector, preserving the trend in 2018 and 2019 will require spas to offer a strong brand, unique treatments and continued focus on enhancing the guest experience. We are likely to see some performance fluctuations in 2018 due to the introduction of VAT, however, the region’s spas are poised for another strong year,” Press continued.
According to figures from the Global Wellness Institute (GWI), three key sectors drive the USD 3.7 trillion global wellness industry: wellness tourism, which generates USD 563 billion; beauty and anti-aging, generating almost USD 1 trillion, and the spa segment, which contributes almost USD 100 billion.
Detox regimes, gold facials and app-based on-demand booking services are just some of the innovations to re-define wellness in the GCC over recent years. However, in 2018, it is expected the industry will shift to offer more tangible health benefits with an increased focus on medical spa services, lifestyle make-overs and sleep therapies.Add to Favorites