Middle East and Africa (MEA) is home to one of the fastest growing spa markets in the world, with GCC leading this growth.
The Global Wellness Institute (GWI) estimates that the wellness economy represents more than 5% of global economic output. Middle East and Africa (MEA) is one of the fastest growing spa markets in the world thanks to the region’s economic growth, burgeoning tourism sector and stable political environment.
We caught up with Beautyworld Middle East research partners TechSci Research to learn more about market dynamics in the region’s spa sector with a particular emphasis on market trends in the Gulf Corporation Council (GCC).
TechSci’s research on the region’s spa industry concentrates on four main categories: destination spas that promote healthy habits, hotel or resort spas for luxurious wellbeing and relaxation, day or club spas that offer day access and membership packages and medical spas that are run by healthcare professionals and include holistic health and wellness or healing therapies in their offerings.
The figures
TechSci’s research published in 2017 forecasts the MEA spa industry to reach a market size of USD 6.43 billion (bn) by 2022, thanks to a compound annual growth rate (CAGR) of 4.96% between 2017 and 2022. This is nearly double the MEA’s CAGR for spas in the previous five year period when it was estimated at 2.77%.
In the GCC market growth is even higher, with the research forecasting a 10.31% CAGR between 2017 and 2022, estimating the GCC’s spa market size will reach USD 2.41 bn by 2022. UAE and Qatar represent the fastest growing spa markets in the GCC with an estimated CAGR of 10.7% for Qatar and 11.51% for UAE in the forecast period. This can be attributed to increased investment in new hotel and resort developments in anticipation of Expo 2020 and FIFA World Cup 2022. When compared with global averages which are estimated at only 4%, it is clear that the GCC represents a very exciting market for the spa industry.
Holistic health and wellness
Changing lifestyles and rising stress levels associated with increasing urbanization are driving demand in spa getaways and destination spas. People are living increasingly hectic lifestyles and at the same time they are also becoming more aware of the associated risks this type of lifestyle brings. In line with these trends, the spa industry is gradually shifting towards holistic health and wellness including medical tourism.
Western consumers in particular are increasingly looking to MEA for spa getaways as its spa market is rapidly developing and the region is becoming more renowned for its excellent spa offerings that offer authenticity and unique experiences. Demand for hotels with in-house spas is a key preference for the millions of tourists that are attracted to the region and destination spas are also growing in popularity. Hotels, therefore, promote a variety of wellness packages from luxurious spa breaks to fitness, detox and weight loss programmes.
Dubai alone has 200-plus spas and research from Colliers Experiential Travel Series reports that the UAE sees an average of 1.7 million wellness trips annually. According to a recent report in The National one in seven tourism dollars in the UAE are tied to a trip with a wellness component*. In fact GWI has coined UAE as a spa powerhouse ranking it as one of the top twenty spa markets in the world in 2015 with 687 spas and employing more than 20,000 staff.
Businesses in the region will continue to innovate in order to meet global trends meeting demand for destination spas that offer holistic health and wellness. It is certain that the demands of modern living will continue to drive an increased demand for wellness destinations as part of people’s travel plans and so the region’s spa industry is set for continued growth for the foreseeable future.