RESEARCH
The low utilisation and revenue levels suggest that these are [all] diffi cult markets, particularly if spas are considered separate profi t centres
£211) in 2010 and us$303 (€228, £187) in 2011. In August it dips to us$199 (€150, £123).
BEIRUT, LEBANON Beirut is a “chic, high-end leisure destination in the Middle East” says to Dahmash. Like Doha, the Beirut market derives a
high proportion of revenues from the local community. Fitness and membership rev- enue generates around 45 per cent of total revenues and 60 per cent of treatments on average are booked by non-hotel guests. Interestingly, although the revenue per
available treatment room in Beirut is only 15 per cent higher – at us$118 (€89, £72) – than that achieved by the spas in the Dead Sea (us$101) and half of that achieved by spas in Doha (us$238), the Beirut spas signifi cantly outperform in terms of RevPATH generat- ing us$32 (€24, £20) versus us$19 (€14, £12) in Doha and us$14 (€11, £9) in the Dead Sea region. T is suggests that the Beirut spas are possibly open for shorter hours. January and August are the quietest
months in Beirut, with daily treatment reve- nues per available treatment room averaging us$99 (€75, £61), while the peak month of September generates us$141 (€106, £87). Similarly, the productivity of therapists is higher in September at us$226 (€170, £139)
– for daily treatment revenue per therapist, while the comparable fi gure in January 2011 was us$152 (€115, £94) and us$161 (€121, £99) in August. T ese are signifi cantly below the peak productivity levels for Doha at us$437 (€329, £269) in May and the Dead Sea region at us$354 (€267, £218) in January.
Spas in Beirut hotels signifi cantly outperformed the others in the Middle East in terms of RevPATH
AVERAGE REVENUE PER TREATMENT SOLD Across the three mar- kets, the average revenue per treatment sold is relatively stable throughout the year, with the exception of October in Beirut where it drops signifi - cantly. Doha achieves the highest revenues per treatment sold of the three regions at an average of us$133 (€100, £82) in 2011, an 11 per cent increase on the comparable fi g- ure for 2010 which was us$120 (€90, £74). Despite the October trough, Beirut achieved an average of us$83 (€63, £51) in 2011, while the Dead Sea region shows little seasonality on this key performance indicator with an average for of us$77 (€58, £47) in 2011, a 5.6 per cent increase on the comparable fi gure for 2010 at us$73 (€55, £45).
Doha
Dead Sea Beirut USA
TRENDS T is is the fi rst year that PwC has covered Beirut, so no comparable data exists for 2010. However, a comparison of January to Octo- ber 2010 versus the same period in 2011 of the Doha and Dead Sea markets shows some signifi cant declines in terms of RevPATR and utilisation of therapists’ hours in both the Dead Sea and Doha markets. In addition, the decline in performance
has occurred in spite of increases in the aver- age revenue per treatment sold in both of these markets (see Table 1).
TABLE 1: AVERAGE TREATMENT REVENUE PER TREATMENT SOLD January to October US$
Dead Sea Doha
2010 73
120
2011 77
133 78 Read Spa Business online
spabusiness.com / digital
TABLE 2: REVENUE PER AVAILABLE TREATMENT ROOM US$
2010
91,141 44,603 n/a
120,195 Source: PwC Middle East, PKF US
GLOBAL COMPARISON So, how do these markets compare with oth- ers worldwide? T e statistics don’t cover a full year – only January to October. If they are annualised (based on the 10 months pro- vided), the revenues per available treatment room are low in contrast to the same year fi g- ures in the US for example. Further, although not yet available, the indications are that the 2011 fi gures for the US are likely to be higher than those of 2010 (see Table 2). T e comparison is of course not totally
correct because the Middle Eastern fi gures are extrapolated, but they nevertheless pro- vide some indication of the quantum. Although low, treatment revenues in the
Doha and Beirut spas only generate around 35 per cent and 49 per cent of total revenues, respectively, with the rest coming from fi t- ness and memberships and retail revenue. However, the Dead Sea spa market, which has the lowest treatment revenues out of the three areas, also has no fi tness and member- ship revenue whatsoever. In conclusion, although the studies don’t
% change 6%
11%
provide cost and profi tability data, the low utilisation and revenues levels suggest these are diffi cult markets, particularly if spas are considered separate profi t centres and with- out taking into account any benefi ts they might generate in terms of hotel room occu- pancy and average achieved room rates. ● For full copies of these PwC spa bench-
marking surveys in the Middle East region, email
yohaan.freitas@
ae.pwc.com.
SPA BUSINESS 2 2012 ©Cybertrek 2012 2011
86,870 36,865 43,070 n/a
IRYNA1 /
SHUTTERSTOCK.COM
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