Bright Outlook Expected for Dubai Spa Market
Colliers International survey reveals that 75% of spa operators expect revenue growth in 2016
Dubai, UAE -- Despite growing competition, a bright outlook is anticipated for the Dubai spa market according to a report issued today by Colliers International, a global leader in real estate advisory services. The report, which features the results from a survey completed by 25 leading spa operators between January – February 2016, lists the key challenges faced by operators in 2015, top 3 guest nationalities and expectations for 2016.
Commenting on the outcome Filippo Sona, Head of Hotels, Colliers International in the MENA region said: "Given that Dubai currently offers a very limited number of spa-specific college level courses and training programmes, it is not surprising that recruitment of therapists was identified as the biggest challenge that the market faced last year. At present operators rely on external training which is both time consuming and costly. Changes are on track, however, as spa courses are being introduced into curriculums."
Sona continued, "An area that does need further attention, however, is the continuous stream of new entrants offering the latest in design and technology. The Dubai hotel spa market, for example, witnessed 11 new opening in 2015 alone. This presents spa operators with a dilemma. Should I invest in new trends? Or cater to the rise of value-driven consumers? The answer is knowing your market and knowing when to say yes to an emerging trend."
Colliers research and analysis reveals that overall, the Dubai Spa Market has experienced an increase in demand in 2015, as demonstrated by the increase in average number of a treatments sold per day, up 7% from 2013. The data indicates a positive trend for spas, highlighting the growing popularity of spa visits. At the same time, spa operators have observed a rise in the price sensitivity of consumers, indicated by the lack of growth reported in average treatment rates over the same period.
Both Resort Spas and City Hotel Spas have also experienced a rise in the number of walk-in guests. The share of walk-in guests in Resort Spas increased from 27% to 37% between 2014 and 2015, and from 40% to 43% in City Hotel Spas, indicating heightened interest in spa treatments within the domestic market. This supports the survey results which revealed that the UAE/GCC is the top market for City Hotel Spas and second top market for Beach and Desert Resort Spas.
Sona concluded: "Despite the challenges, the Dubai spa market has remained resilient and continues to grow. Over 76% of respondents expect spa revenues to continue to grow in 2016 which is a tremendous result and indicative of the rising growth of the industry and its ability to drive guest bookings."
About Colliers International Hospitality
Colliers International is a leading global real estateservices company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation; customized research; and thought leadership consulting. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals" Global Outsourcing for 11 consecutive years, more than any other real estate services firm.
In MENA, Colliers International has provided leadingadvisory services through its regional offices located in Dubai, Abu Dhabi, Riyadh and Jeddah since 1996. The latest annual real estate survey by Euromoney named Colliers International "Best Advisor" in the MENA region, UAE, Qatar and Saudi Arabia.
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