23 Jan 2015
Middle East Spa Benchmark Report for first three quarters of 2014: PwC
BY Helen Andrews
PricewaterhouseCoopers (PwC) has released its latest edition of the Spa Benchmark Report covering the Dead Sea, Doha and Beirut spa regions. This publication analyses 11 key metrics in the industry for the first three quarters of year 2014.
Issued on a quarterly basis, the report provides hospitality sector developers, owners and investors with key spa performance data.
The average treatment revenue per treatment sold was highest in Doha, at US$146 (€130, £98), which is roughly 60 per cent more than the Dead Sea and 160 per cent higher than in Beirut.
The Doha market captured the highest average daily treatment revenue per available treatment room, standing at US$289 (€257, £193), while the Dead Sea and Beirut markets captured revenues of US$92 (€82, £61) and US$57 (€51, £38) respectively.
The average daily treatment revenue per occupied treatment room was the lowest in the Beirut market, at US$80 (€71, £53), according to the report.
The average daily revenue per therapist for Doha spas was 40 per cent higher than Dead Sea spas and 278 per cent higher than Beirut spas.
Revenue per available treatment hour (RevPATH) was the highest in Doha, at US$30 (€27, £20), while RevPATH in the Dead Sea and Beirut stood at approximately US$15 (€13, £10) and US$14 (€12, £9).
Although average treatment revenue per treatment sold and average daily treatment generated per therapist are higher in Doha, the Doha spa market actually accounted for the lowest utilisation of therapist hours in the three markets surveyed.
And while Doha and Beirut reported income from fitness and membership revenues, no revenues were reported in this category in the Dead Sea. PwC believes this can be attributed to the lack of affluent local population in the immediate area surrounding the Dead Sea.
Retail revenue in all three markets remains an under-capitalised revenue stream, according to the report. This is a trend seen throughout the global industry.
While spa treatments booked by hotel guests in the Dead Sea represented 85 per cent, hotel guest treatments only contributed to 15 per cent and 27 per cent of treatments booked in the Doha and Beirut markets, respectively. PwC puts this down to the fact that the Dead Sea is a leisure tourist destination, without a large affluent and urban local population.
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