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Intelligent Spas Publishes Updated Dubai Spa Benchmarks

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Intelligent Spas’ second Spa Benchmark Report on the Dubai spa market found over 60 spas are currently operating in the vibrant Emirate. These spas are generating an impressive revenue of AED320 million (approximately US$87 million).

Other key findings include:

• Resort spas achieve significantly higher revenue per spa compared to day spas and hotel spas.

• Over half of the visits to Dubai hotel and resort spas are from people not staying at that property, highlighting the importance of hotel and resort spas also catering to their local markets in terms of operational policies and procedures and incorporating local day spas in their competitor analysis activities.

• 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.

Industry Outlook:

• Spa numbers are forecast to grow 17.7% by the end of 2009.

• Revenue is predicted to fall by over 50% before a recovery in 2010.

• Spa visits are forecast to decrease by 33.7%.

Julie Garrow, Managing Director of the independent research company, Intelligent Spas, said, “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.”

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