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.
Spa benchmarks and key performance indicators
This is one of the most comprehensive statistical reports ever published on the Dubai spa market, and it contains more than 1,050 spa industry benchmarks relating to total spa revenue, spa treatment revenue, expenses, visits and employment, with many topics showing historical data available from 2005 to 2008, plus forecast data for 2009 and 2010. The benchmarks are comparable across the entire spa industry due to the consistent global research methodology implemented by Intelligent Spas.
Other statistics and benchmark ratios featured in the report include:
- Average treatment price
- Average revenue per visit
- Therapist productivity/utilization rate
- Total revenue and treatment revenue per available treatment hour and minute
- Total revenue and treatment revenue per square foot
- Total revenue and treatment revenue per available treatment room
- Total revenue and treatment revenue per employee
- Breakdown of total revenue, including retail revenue
- Breakdown of total expenses
- Repeat visitation rate
- Visitor profiles by gender, age and residence
- Proportion of hotel guests visiting the spa
The report also presents a collection of supporting business intelligence including:
- Spa business models describing ownership, business structure, management structures.
- Spa infrastructure covering spa size, space breakdown, treatment rooms and stations, standard support facilities versus water-based support facilities.
- Spa menus, such as variety of hydrotherapy and water-based treatments offered, and the range of treatments practiced.
- Spa industry trends relating to treatments and clients.
Research objectives and sampling
This Spa Benchmark Report aims to provide a reliable update of the spa population, profile, size and value, plus calculate updated and reliable industry benchmarks for key financial and performance indicators.
The research achieved a response of 55 validated spa businesses, representing 89% of the spa population and is available for purchase from www.IntelligentSpas.com. Intelligent Spas does not conduct anonymous surveys. Each respondent must identify themselves, comply with Intelligent Spas’ benchmark definition of “spa” and pass numerous screening criteria to qualify to ensure the research is accurate and reliable for users. Intelligent Spas' 100% independence policy ensures all individual survey data submitted by spas is not used for any other purpose.
Intelligent Spas is one of the only 100% independent research companies specializing in the spa industry. Founded in Singapore in 2001, it has pioneered spa industry research in the greater Asia Pacific region and continues to publish a range of spa operations manuals and Spa Benchmark Reports to assist the performance and growth of this essential industry.
Intelligent Spas' Global Spa Benchmark Program is currently underway in more than 70 countries and aims to produce reliable and comparable statistics to help spas maximize their performance, provide business intelligence to assist other organizations to better understand, service and support the spa industry plus generate greater awareness of the spa industry to increase spa visits.