Wellness & spa tourism in the Middle East

HOTELIER: Let’s talk about spas in this region; would you say that the UAE is being seen as a destination for spa and wellness holidays?

Sayed SALEM: We have the spas, we have the qualified therapists and the qualified mangers but the authorities have to work more in marketing the UAE as a destination for spas. The UAE, and Dubai in particular, is known for its culinary experiences and now the authorities need to take the spas out to the market too.

Paul Hawco: Dubai has most of the best therapeutic facilities in the world ,and the expertise in the spa sector has matured and we are drawing experts in. We are quite competitive and innovative and do a good job. I don’t think we are a spa destination yet: we need to have a few destination spas for that — that would help! But we do have some great spas and wellness facilities although it is not yet fully understood beyond the operations teams.

HOTELIER: Are there other countries in the MENA region that are known for wellness and spas?

Paul: Europe and the US are the founders and Asia is strong, but they don’t do a better job than we do. I went there and wondered ‘what’s the big deal?’ Guests are coming for the destination — you can’t replicate Thailand or Bali, but Dubai can leverage those things and be more indigenous. We have a lot of healing rituals and we need to expose these further.

Sayed: I see that there are a lot of themed spas in Asia but if you look to the Middle East we are not yet there. We have great spas but we don’t have the concept to build a spa that is themed like in Asia.

Paul: It is coming though, I promise you! We have Petra and the Dead Sea in Jordan, Banyan Tree in Ras Al Khaimah and Six Senses Zighy Bay in Oman and Abu Dhabi has a couple, and in Dubai there’s a few that are close. Speaking about the wellness tourism industry — there are a lot of numbers being thrown around — there is a US $4.3 trillion wellness economy, of which $500 billion is actually wellness tourism and inside that there is $90 billion that’s spa.

Spa and wellness means every possible thing, such as sales of beauty products and yoga mats to fitness and nutrition, so it’s hard to actually grasp ‘what does that mean for me?’ At Talise we dig deeper into this realm and what’s coming. For wellness tourism, our capture rate is around 3-5% and even if we shut down all our marketing collateral these people would still find us. In the future, I see us getting from 4% to 15-20% where it should be and I’d like to see that in four years’ time. It should be a viable business and I’d like to see that.

Sayed: It will grow gradually, but up to 20%? It could go up to 5%, hopefully 10%.

Paul: There are already spas here that achieve that though, I can’t say who they are but they do 10% now. The spas at the One & Only and Burj Al Arab, for example, they have a very high capture rate because they have positioned themselves to attract that type of market. And the people that are coming, the wellness travellers, spend 130% more than normal travellers. Our spas are so big and they are under-utilised for the most part. No spa in the city is at full capacity — we all can do more business. We just don’t have the proper guests in the hotels sometimes.

Afrah HAMDY: I agree 100% and if we focus on creating awareness to people who are coming from all over the world to stay in our hotel about the wellness programmes we do in-house… if they trust you then they become the big spenders [in the spa].

Paul: Exactly. Looking at the growth of the wellness tourism industry, you can break it down into primary wellness guests, which are the ones coming now and this will grow. But the secondary guests who are looking just for healthy hotels, good experiences, a wellness day or a yoga day and to get some education — that’s where the growth is coming from and that provides the other 10-15%. To aim for 20%, yes I threw that out there — that’s high. But definitely achieving 10-20% is possible.

Sayed: Increasing the capture rate has to do with the room rate of the hotels.

Paul: It’s the mix that comes to the hotel. My Maldives properties get 22%. Why can’t we have that? There’s more to do here — it’s a great destination for shopping and for beach and for sightseeing. It’s a great place to be but I want my spas to have that.

Sayed: It also has to do with what the authorities can do to help increase capture rate and it has to do with the room rate too. We have seven spas and we do a comparison between the venues and we have noticed that the hotel that has the higher room rate captures more guests. They have better increase in retail revenue also, and although the number of treatments isn’t necessarily higher than others, the quality of the guests show they are really high spenders. People will seek discounted prices over the next 12 months so we have to tactically create an attractive promotion and we have to seek the thoughts of the customers looking for discounts.

Paul: This is important and not just because we are approaching the low season, but at the same time, I don’t want it to be a discount-driven industry otherwise you lose authenticity and you lose the value of what it is people are coming for. I wish there was a consolidated effort for price management but I think the way around it, or at least what we’re working on, is the idea of a wellness month where a lot of it is complimentary. We need to offer value and give back to the community, to Dubai, to guests and people that come.

HOTELIER: What other support do you think the wellness industry needs in raising awareness of the region as a wellness or spa destination?

Sayed: I think they should start building a free spa treatment into the room rate of the hotels. This shift in thinking has to do with increasing capture rate as well — because if you build a free spa treatment into the room rate you will definitely have a higher footfall of guests coming into the spa. When it comes to pricing, we have to really looking into creating different loyalty programmes to ensure people are able to have spa treatments at an attractive rate without saying we are discounting. It’s a smarter way to approach it.

Paul: I think your question is more about what we need to do to become more of a destination for spa and wellness. We can’t do it by ourselves. A lot of spas do a great job — we go deep into a lot of marketing initiatives, campaigns and rate strategies, but we definitely need help beyond one spa or one spa group. DTCM are focusing on it overall, but the medical side is where the bigger need is because those people need help right away and have issues that need to be addressed and there is more funding and recognition for that. But it would help if we have a governing body or association as well to help drive or pull together some of these things we’re talking about. Ultimately, we do packages and a lot of other things but who knows about it? Spas are a little bit passive about how we get to market.

Afrah: One thing I will add is [about] the qualification process. We have been hearing news that in the spa sector, every therapist needs to be re-certified. Most of our spa therapists are already certified and in order to pass the DHA test they will need to have at least two years or 600 hours’ of training, and you need to also have professional hands-on experience too. The point I want to make is that our therapists are willing to take any kind of examination — we just want to make the process easier and then mark the UAE as a spa destination where people can come safely and have their wellness programmes and spa treatments by very highly trained individuals.

Paul: Looking at the fitness industry, it is very established — they can have training as they go and can catch up after a year, for instance. We definitely want and need that kind of thing. Brand and reputation is still the number one reason why people choose a spa and wellness centre and having licensed, trusted therapists is one of the most important aspects of that.

Sayed: I think it has been approved by the authorities to initiate that kind of certification for our therapists because, as you mentioned, the fitness and wellness side is very well established and they know what they are doing but the spa side is not yet there, but the approach is very positive. Our spa is one of the only spas at which a therapist has passed the DHA exams.

Paul: Yoga is a good example actually. Every day there is a new thing, such as yoga in the desert or yoga on the beach. We do it and have a good reputation for it but who’s monitoring that? Is it authentic? So the only caution is that we don’t go too fast as everybody wants the business and everyone wants to be on trend so as it grows more we need to consider how this will be managed. Are they going to train their own yogis? Meditation I think is the next big thing — it’s more for the masses. Yoga is popular now as there is one teacher per 40 participants so the revenue per square foot is one of the best pieces of business you can do.

HOTELIER: Do you think hotels are successfully packaging themselves from a wellness perspective?

Paul: Not yet, I think we are seen as an amenity, and when they see that it’s profitable and that there is an ROI they see that they needed us — and now it has come full circle as the wellness guests may become very valuable in a hotel. Hotels have teams that travel to other countries to sell their products. And we need to piggyback more on the hotel model.

Afrah: Wellness is a complete concept – it covers the spa treatments, food and beverage and the experience overall. We have a wellness menu that is presented in our F&B outlets — even at breakfast. In the spa we are now developing the concept of wellness that starts with a consultation and then we design a programme according to the person.

HOTELIER: Do you think the spas here already have the facilities specifically for tourists coming into the destination, or do you think you need to add anything to bring us up to the level that global travellers are used to?

Afrah: We have nature. This country is blessed with the sea and we have the desert and greenery. If we look at the local culture and nature it should be much more utilised. If we can, we want to see more spa design, or hotel design around the spa. If we can design something to blend more with the local culture and make people feel like they are coming to experience nature and a complete concept, then I think it will resonate.

Sayed: I agree. We have the capability of doing this. The treatments we do are best-in-class in the region. We’ve also seen that the authorities are striving to get our therapists well trained by certifying them. So guests’ expectations are met and even exceeded. Having online booking for spas is something we lack, where guests can go online and book their treatments. We are in the process of creating this and hopefully it will be out within a month. There is online booking for restaurants and room but I think only a few spas have the option. So there is a great potential for creating awareness there.

Paul: Some of the core features we need to focus on is [back to] square one with quality service and consistency, with brand connection. All these trends can confuse us a little as everyone jumps around trying to stay on top of the market, but if we can remain authentic to who we are, the guests will find us and all will be ok. We have lots of natural resources as well as the culture and service and interesting healing rituals, as well as desert safaris and the ocean and all this needs to be positioned.

HOTELIER: What are the main challenges you face in making that final push as a spa destination?

Paul: Getting a further reach. Everyone does a great job, we just need to sell it beyond the reach that we currently have. Online booking is an example of how to do that, working with travel agents and getting the hotel model change to package it better.

Sayed: The UAE has 500 spas, and Dubai is very well known as the destination for a great culinary experience. So authorities now have to promote the destination for wellness as well.

HOTELIER: Do you see the concept for a wellness festival working well?

Afrah: I do see this working well. We have confidence in the leadership that they are always looking to be the best of the best. Three years ago I was reading an article that was championing Dubai as the leading wellness destination in the region in the future and I believe in that. We have the highest number of wellness concepts run both by standalone companies and by hotel brands so everyone is working to sharpen their skills.

I believe there is huge potential in the future and most of the conferences and networking regarding spa and wellness is happening in Dubai. There is huge potential in future to market this destination as a wellness destination. We have everything: professionals from all over the world, we have the capacity and the quality — so we are ready to be the best in the Middle East.

Paul: Some of the corporations such as Du have partnerships with clubs and they are doing wellness festivals, for instance, and Zabeel Park is running an initiative with DHA. This year, it’s going to be amazing!

HOTELIER: How much business do you get from the travel trade?

Afrah: This is something to do with insurance. In Europe and Western countries, for instance, most people use spas and it is covered by their insurance. I believe that if companies tie up with other tourist trade it will attract huge markets, as people are willing to come here. There is a reason to visit in every season so I think a wellness festival is something that can be packaged and promoted to the travel market well.

Paul: We don’t need a board or an association to come together and market something like that — it’s something we can all do together. In my mind, it’s a way of getting away from being a discount business in the summer. We can still go with lower prices and still attract clients coming at that time of the year but if we position it, value wise, as a spa season — like a spa passport type of thing then we can all work together on it for the greater good. We are also competitive — but for the destination, we need to have some cooperation, not just competition.

Sayed: We should get together and curate something that can be taken out to the world. Spa season could be one of the months where not much is happening in the city and take it out to the market that this is the month for spa and wellness.

Paul: When I open a new spa it’s not about the rate, it’s about volume. We want people to find us and we want people to know where we are in order to build relationships with them and build loyalty and get them to come back. Maybe [with the idea of a wellness festival] we don’t have to do so many other offers during the rest of the year, which is so distracting for us. Reiterating the point about capacity, you go to a spa and say we are going to do this offer Monday to Tuesday during certain times — why? There are too many terms and conditions. We are giving people reasons not to come if you ask me, versus making it accessible to them. To me, any spa that has more than a four-hour cancellation policy is behind.

HOTELIER: What are the trends that you are seeing in your market right now?

Sayed: We have seen a significant shift among consumers for wellness and preventative health. They are expecting a more proactive approach from the spa in addressing the primary concerns of guests. So I think the consistency of the spa experience is more important than creative new treatments and that the guest journey will become very important — so not only having a good treatment but including everything from the lighting to the music.

Finding new and innovative ways to relax and deliver service will only increase as well. With the stressful lifestyle in Dubai the guests want to de-stress and the spa should reflect this ongoing trend through their offering for yoga, Thai Chi and meditation and relaxation and massage. Using technology in treatments is also a growing trend. Wellness guests will continue to seek out discounts over the next 12 months, therefore we should be able to have new and innovative promotions and new ways to ensure the guests will return back, such as loyalty programmes. Furthermore, guests are willing to pay for quality so this should remain in focus.

Lastly, all the spas will go into having online booking. We have seen that the main client area is increasing — they are now into not only having massage but also a manicure and pedicure with a treatment as well.

Afrah: There is a big demand for family-friendly spas. If we can find ways to engage the kids in the right way, not just having kids’ club facilities, as kids want to try the spa. They should have an area to play in and get educated enough about what spa wellness and healthy eating is all about. A family friendly spa is fantastic as it will be great if every couple with kids can go to one place and all socialise at the same time, particularly in this region. We know the gender policy but if we can create a space such as suites for families at which they can have a healthy lifestyle then it will be great.

Sayed: I strongly agree with that. We should open up spas to those under 16 years old so teenagers can try the spa. We’ve seen that spas in Europe and the US are offering this and when they come over here they take their children and go to spas. They want to book their children for treatments and get disappointed when we say no.

Paul: Family spa is on the top 10 trend list. We cater to those aged 13 to 16 with a medical waiver and with a parent on site or close by. But it is also important to remember that a spa is an adult sanctuary and it is important to us that we keep that first and foremost as a part of our positioning, but there’s a lot of ways we can do it. It’s a family approach and it’s a good point as Dubai is positioning itself more as a family destination with all these theme parks and if we piggyback on that with a spa season then that would be a very powerful thing.

As far as trends are concerned, wellness is a shift way beyond a trend but, inside that, expertise is outweighing facilities. So a hotel will save on build costs and ROI when it comes to that and will spend more on payroll and bringing in people who really know what they are doing. I’m not saying we don’t already but as we continue to move forward it be become more important. Payroll can be expected to increase for spa as we become more competitive.

Afrah: If the number of experience therapists is high you don’t need to spend as much on payroll. But if there is one in 100 with that kind of experience you have to pay them a lot.

Paul: It will start with the experts such as the yogis and as with any business model it’s a cycle that will happen. We need to invest more in training and recruitment more and in retaining our staff and ensuing it’s a good culture to work in.

HOTELIER: Are a lot of your spa guests coming from the GCC or do you also have a lot of international tourists?

Paul: We look at as many measurements as we can without getting too bogged down by it all. Measuring internal guests and external guests as the main two. Then female/male then German/Russian, et cetera, but a new KPI for us is tracking intra-country domestic guests who are truly coming from a wellness perspective.

Sayed: The majority of our guests come from Gulf countries such as Saudi Arabia Kuwait and Qatar.

Afrah: For us it’s the GCC and the number one segmentation is actually the UAE.

Sayed: Yes, they are also high spenders. We have even seen an increase in treatment retail as well from this segment.

Paul: A lot of regional guests come for special occasions such as birthdays and anniversaries so we need to make it more of a lifestyle option. About 50-60% of our guests for spas are from Dubai, which is very strong.

Meet the experts:

Afrah Hamdy, spa director, Anantara The Palm Dubai Resort

Afrah Hamdy has worked in the GCC spa industry for more than 10 years, with experience across various hotels.

Sayed Salem, spa & recreation manager, The Palace Downtown Dubai

A Hotelier Awards winner, Sayed Salem has worked with Emaar Hospitality Group since 2011.

Paul Hawco, director of Talise Spa Operations, Talise Wellness, Jumeirah Group

With Jumeirah Group since 2011, Paul Hawco was previously with FRHI, having worked in the fitness and spa departments.