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Intelligent Spas Offers Facts on the Dubai Market
Posted: July 16, 2009
Spa research company Intelligent Spas has released a report on the spa market in Dubai, indicating its strengths and weaknesses.
Intelligent Spas’ second Spa Benchmark Report on the Dubai spa market presents extensive business intelligence and financial statistics, including breakdowns of key performance indicators by day spas, hotel spas and resort spas. The new research found more than 60 spas are currently operating in Dubai and generating revenue of approximately $87 million.
Other key findings include:
- Resort spas achieve significantly higher revenue per spa compared to day spas and hotel spas.
The daily treatment revenue per available treatment room recorded by day spas increased by 22% over the last year.
- Prices of standard spa treatments are higher at hotel spas in comparison to prices set by day spas and resort spas.
- Average treatment room occupancy/utilization and therapist productivity rates are less than 50%.
- Almost 30% of visitors to Dubai spas are international tourists.
- Spa numbers are forecast to grow 17.7% by the end of 2009.
- Revenue is predicted to fall by more than 50% before a recovery in 2010.
- Spa visits are forecast to decrease by 33.7%.
“Overall, the Dubai spa market is experiencing reduced demand, which is greatly affecting revenue. These updates provide a clear view on current market conditions and the short to medium term outlook. There are significant differences in the performance of day spas, hotel spas and resort spas, and this detailed research is a valuable tool for those currently operating in, or planning to enter the Dubai spa market” stated Julie Garrow, managing director of independent research company Intelligent Spas.