New research shows demand for spas in Middle East

The number of residents and tourists seeking to experience spas in the Gulf/ Middle East region continues to rise. New research published by Intelligent Spas – ‘Spa Development Pipeline Research’

Spas were once a luxury. The number of residents and tourists seeking to experience spas in the Gulf/ Middle East region continues to rise. To match the growing demand of the wellness industry, spas are taking on renewed importance.

Hotels are reacting to the demand and looking at improving the offering, with new packages and treatments, undergoing refurbishment and innovation. The number of spas and associated revenue is increasing.

New research from Intelligent Spas, ‘Spa Development Pipeline Research’, has identified 139 spa developments planning to enter the GCC between 2015 and 2019, potentially increasing spa numbers in this region by 27%. This will see spa numbers increase to 639, up 19% compared to the number of spas operating in the GCC in 2013.

Julie Garrow of Intelligent Spas says, “Saudi Arabia has the highest industry growth potential, with spa numbers increasing by 34% by 2018, if all reported developments are completed. Oman’s spa industry is set to increase by 23% between now and 2018, based on confirmed spa developments. Dubai has the highest number of spas in the GCC, with more than 190 operating and another 34 spas in the pipeline.”

And by the end of 2015, the UAE’s spa industry was forecast to achieve revenues of US $1.5 billion, rising to US $2.26bn by 2017, making it one of the most valuable tourism-related industries in the Middle East, with the MENA region the second fastest-growing market in the world for spas after sub-Saharan Africa, according to the Global Wellness Institute. According to GWI the UAE will top spa growth in the region by 2017, more than doubling current business volume with 17.9% annual growth since 2012.

Wellness tourists spend, on average, 130% more than the average international traveller, which presents significant opportunity to target this high profile, high spend market segment with a wide variety of experiences, facilities and products to grow market share.

Colliers International new ‘Dubai Spa Benchmark Report’ is based on data from 216 treatment rooms of Dubai spa owners and operators. The report indicates a positive outlook for Dubai’s resort spa market with a 6% increase in treatment revenue recorded in H1 2015 and an increase in in-house guests to 74% up from 67% in H1 2013.

What may slow down the building and use of spas is the economic fall-out from the oil economy, and the reluctance by some travellers to go to the region.