Dubai - Mubasher: Dubai’s 5-star hotel spas are expected to grow by a 10.7% compound annual growth rate (CAGR) by 2021, according to data released by Colliers International.
The number of 5-star hotel spas in Dubai is set to rise to 157 by 2021 from 107 in 2017, the report forecast, noting that this increase “is in close correlation with the emirate’s hotel pipeline.”
Visit Dubai projects annual revenues for the emirate’s hotels will reach $495 million by 2019.
Wellness trips to the GCC hiked to 44% in 2015 compared to 2013 after the number spas grew by 27%. Oman and Bahrain led the growth across the GCC in 2015, the report said, indicating that Bahrain witnessed the highest revenue growth of 17% during the same period.
Meanwhile, the UAE is forecast to witness the opening of 83 new hotels in 2018, while many spa and wellness amenities are also due to open by 2020 across the Middle East.
Such performance signals “a mature market” that is able to absorb new supply, Colliers International stated.
It is worth noting that the number of high profile hotels increased during the recent months with the opening of The Spa at Palazzo Versace Dubai and The Bulgari Spa.
“The predicted growth in spa inventory is closely tied to the region’s hotel pipeline. Yet, unlike hotels, the report shows spas enjoy a level of resilience to increased competition and, in part, this is due to their growing appeal to different demographics and income groups – from millennials to local residents,” commented Simon Press, senior exhibition director at the Arabian Travel Market (ATM) exhibition.
He added that while such growth has been positive for the sector, maintaining the trend in 2018 and 2019 will “require spas to offer a strong brand, unique treatments and continued focus on enhancing the guest experience.”
It is likely that the sector in the UAE will see some performance fluctuations in 2018 due to the introduction of the value-added tax (VAT), Press noted, emphasising that the region’s spas were poised for another strong year.
Globally, three main sectors have boosted the $3.7 trillion wellness industry, namely: wellness tourism with $563, beauty and anti-aging with $999 billion, and the spa sector with $99 billion, the report showed.
“Regionally, the spa sector is multi-faceted and sensitive to events and developments in many other sectors, including global health, beauty and wellness trends,” the ATM’s top official stated.
“In 2018 and beyond, we expect to see these trends converge, further cementing Dubai and the region’s reputation as a leading medical, wellness and health destination,” Press concluded.
The data comes ahead of the 25th edition of the Arabian Travel Market (ATM) exhibition, which will be held at the Dubai World Trade Centre between 22 and 25 April 2018.
