Dubai’s annual spa revenue forecasted to reach US$495m in 2019

The number of 5-star hotel spas in Dubai is on track to increase by a Compound Annual Growth Rate (CAGR) of 10.7% to 2021, a Colliers International report says

Dubais annual spa revenue forecasted to reach US$495m in 2019
Dubais annual spa revenue forecasted to reach US$495m in 2019

Dubai’s annual spa revenue is predicted to reach US$495 million in 2019, according to data released by Colliers International ahead of the 25th edition of Arabian Travel Market (ATM), which will take place at the DWTC from April 22 to 25, 2018.

The Spa & Wellness report produced by Colliers International for ATM states that Dubai’s spa inventory is expected to grow from 107 in 2017 to 157 in 2021 which is in close correlation with the emirates hotel pipeline.

Recent spa openings include The Spa at Palazzo Versace Dubai and The Bulgari Spa, which will contribute to projected annual spa revenues by 2019, according to Visit Dubai.

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ATM senior exhibition director Simon Press said in the statement that the spa industry is dependent on various related trends. “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,” he added.

For the Spa & Wellness report, Colliers analysed data from spas representing 369 treatment rooms across Dubai and Abu Dhabi and focused on indicators such as demand and revenue trends. In Abu Dhabi, the average treatment rate is AED 348 ($95), compared to AED 394 ($108) in Dubai, with approximately 17 and 22 treatments sold per day, respectively, the data reports.

As for guest profile, the data notes that spas in Abu Dhabi welcomed more males and walk-in guests at 53% and 67%, whereas in Dubai, 58% of spa guests are female and 55% of guests pre-book the treatments.

UAE will see 83 new hotels open in 2018, many of which will feature spa and wellness amenities and, across the Middle East, the data reports that a further 500 new properties are due to open by 2020.

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