Revenue is up for Dubai's hotel spas [Image used for representational purposes only]. Revenue is up for Dubai's hotel spas [Image used for representational purposes only].

Colliers International has launched the inaugural 'Dubai Spa Benchmark' which revealed Dubai's spa market witnessed a 6% y-o-y increase in treatment revenue (H1 2014-H1 2015), while also increasing its share of in-house guests to 74% up from 67% in H1 2013.

The biannual benchmark, which is based on data from 216 treatment rooms provided by Dubai spa owners and operators, provides consolidated performance statistics for urban hotel spas, beach resort spas and independent spas.

A total of 14 key metrics are included in the report which are divided into three categories: revenue indicators, utilisation indicators and hotel-related indicators.

Colliers International head of hotels director Filippo Sona said the initiative was created for and is being driven by the industry, and hopes to further Dubai as the destination of choice for the health and wellness industry.

In an interview with Hotelier Middle East, Sona said: "We felt there is an opportunity in the market to increase the awareness of the potential of the wellness industry.

"One of the things that operators, owners and brands tend to complain about was the fact there was no benchmark or key performance indicator in the market."

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Sona added: "Spas tend to occupy the most prominent part of the real estate in hotels. And because you need to make it accessible and feasible, the space required is quite large. "

While the report highlights the strength of the Dubai resort spa market, pressure has been felt on revenue for city spas owing to the increase in walk-in guests –typically local residents - as opposed to in-house guests. A decrease of 6% in average treatment revenue was recorded from H1 2014-H1 2015.

Sona said in a statement “Dubai city hotel spas have witnessed an increase in walk-in guests rather than in-house which has had a detrimental effect on their overall revenue.

"Local residents often receive a discount on treatments through seasonal promotions or loyalty schemes, and they tend to be more price conscious than in-house guests.

"The local market, however, does offer significant opportunities for spa owners and operators particularly when you consider the case for branded spas in residential developments. This is an area where we are seeing strong potential and growth."

A special report on the Middle East hotel spa industry will be released in the January 2016 issue of Hotelier Middle East.