Gss.spa.economy.report.2008

THE GLOBAL SPA ECONOMY
2007

May 2008

THE GLOBAL SPA ECONOMY
2007

The Global Spa Summit gratefully acknowledges the support of our sponsors who
made the research for the Global Spa Economy possible.

Raison d’Etre

About Global Spa Summit
The Global Spa Summit is an international organization that brings together leaders and
visionaries to positively impact and shape the future of the global spa and wellness
industry. Founded in 2006, the organization hosts an annual Global Spa Summit where
top industry executives gather to exchange ideas and advance industry goals. For more
information on the Global Spa Summit, please visit: www.globalspasummit.org.

About SRI International
Founded in 1946 as Stanford Research Institute, SRI International is an independent, non-
profit organization that performs a broad spectrum of problem-solving consulting and
research and development services for business and government clients around the world.
More information on SRI is available at: www.sri.com.

Copyright
The Global Spa Economy 2007 report is the property of the Global Spa Summit LLC. None
of its content – in part or in whole – may be copied or reproduced without the express
written permission from the Global Spa Summit. Quotation of, citation from, and reference
to any of the data, findings, and research methodology from the report must be credited
to “Global Spa Summit, Global Spa Economy 2007, prepared by SRI International, May
2008.” To obtain permission for copying and reproduction, or to purchase a copy of the
report, please contact the Global Spa Summit by email: research@globalspasummit.org
or through www.globalspasummit.org.

The Global Spa Economy 2007

Table of Contents

EXECUTIVE SUMMARY ........................................................................................................ 1
I. OVERVIEW ..................................................................................................................... 4
II. ANALYTICAL FRAMEWORK .......................................................................................... 7
A. DEFINING THE SPA ECONOMY .......................................................................................................... 7
B. QUANTIFYING THE SIZE OF THE SPA ECONOMY............................................................................. 13
III. THE 2007 SPA ECONOMY ........................................................................................... 14
A. CORE SPA INDUSTRIES..................................................................................................................... 16
B. SPA-ENABLED INDUSTRIES ............................................................................................................... 35
C. ASSOCIATED SPA LIFESTYLE INDUSTRIES ........................................................................................... 38
D. ECONOMIC IMPACT OF THE SPA INDUSTRY..................................................................................... 40
IV. HOW TO USE THE FINDINGS TO MOVE THE SPA INDUSTRY FORWARD .................... 42
V. SPA ECONOMY RESEARCH AND ESTIMATION METHODOLOGY ............................... 45
A. DATA COLLECTION.......................................................................................................................... 45
B. ESTIMATION METHODOLOGIES ....................................................................................................... 47
VI. REFERENCES ................................................................................................................ 58
VII. ABOUT THE RESEARCH TEAM ..................................................................................... 62

The Global Spa Economy 2007 report was prepared by SRI International in agreement with the
Global Spa Summit. The study was led by Ophelia Yeung, Director of Economics Program, and
Katherine Johnston, Senior Economist, with contributions from: Nancy Chan, Economic and Technology
Policy Analyst; Li Gwatkin, Senior Consultant; Fergus Murphy, Senior Economist; and Jennifer Ozawa,
Senior Economist at SRI International; as well as over 50 spa industry executives around the world.

Copyright Global Spa Summit 2008 SRI International


Executive Summary
The Global Spa Economy 2007 is a landmark first step in developing a framework to
quantify the global spa industry. The objectives of this study are:

 To put forward a comprehensive framework to understand and quantify the scale
and impact of the global spa economy.
 To develop high-level, global estimates that enable industry leaders, investors, and
policymakers to make informed business and policy decisions.
 To stimulate dialogue among all industry stakeholders regarding the definition,
measurement, and positioning of the global spa industry going forward.

The study has taken a decidedly inclusive approach in defining the term “spa” by
considering its different interpretations by global businesses and consumers.

For the purpose of estimating the global spa economy, this study defines spas as
establishments that promote wellness through the provision of therapeutic and
other professional services aimed at renewing the body, mind, and spirit.

To estimate the size of the global spa economy, SRI employed an industry cluster
framework that is widely used by industry and government leaders around the world
for high-level strategic planning and organizing stakeholder groups for action. When
viewed through this framework, the spa economy – consisting of core industries,
enabled industries, and associated industries – is much larger that it may initially
appear. The analytical framework is illustrated below.

The Spa Industry Cluster

Spa Facility Operations

Beauty & Beauty
Spa Capital Spa-Related Products Industry
Investment Hospitality
Spa & Tourism Fitness & Fitness
Education Products Industry

Spa
Consulting Beauty & Wellness
Spa Media, Medicine Industry
Associations Spa-Related
& Events Real Estate Healthy Foods &
Spa-Branded Nutrition Industry
Products

Core Industries Enabled Industries Associated Industries

Copyright Global Spa Summit 2008 1 SRI International


SRI estimates that the total size of the global spa economy in 2007 was $254.7
billion. This estimate includes $60.3 billion in core spa industries and an additional
$194.4 billion in spa-enabled industries, as shown in the table below.

Size of the Global Spa Industry, 2007 (US$ billions)
Core Spa Industries $60.31
Spa Facility Operations $46.81
Spa Capital Investments $12.99
Spa Education $0.31
Spa Consulting $0.07
Spa Media, Associations, & Events $0.13
Spa-Branded Products n.a.
Spa-Enabled Industries $194.35
Spa-Related Hospitality & Tourism $106.05
Spa-Related Real Estate $88.30
Total Spa Economy $254.66

Spa facility operations represent $46.8 billion in revenues, or 78% of the “core”
industry. The spa industry has been experiencing rapid growth in many regions around
the world, and this growth is reflected in a significant level of capital investment,
estimated at over $12.9 billion in 2007. The other “core” sectors – including
education; consulting; and media, associations, and events – are relatively small by
comparison, but still represent important pieces of the industry. Together, these sectors
earned an estimated $0.51 billion in revenues in 2007.

A significant amount of activities in the tourism and real estate sectors are influenced
by the burgeoning spa, health, and wellness trend. SRI estimates that $106.0 billion in
global tourism and hospitality revenues were “enabled” by the spa industry in 2007.
Additionally, an estimated $88.3 billion in global real estate construction revenues
were “enabled” by the spa lifestyle concept in 2007.

The spa industry sits solidly within a broader set of lifestyle, health, and wellness-
driven industries. The four “spa lifestyle associated industries” – those industries
directly interconnected with the spa industry – represent a global market that
exceeded $1 trillion in 2007.

Global Spa Lifestyle Associated Industries, 2007
Global Market Size (US$ billions)
Beauty and beauty products industry $500.2
Fitness and fitness products industry $241.3
Beauty and wellness medicine industry $195.8
Healthy foods and nutrition industry $162.4
Total $1,099.7



The size of the spa economy and its economic impacts represent an important message
that should be communicated for purposes of:

 Advocating to government leaders that the spa industry is an important and
strategic sector to be supported;
 Joining industry stakeholders together to provide a stronger voice and more
collaborative action;
 Reaching out to consumers by allowing for flexibility in the interpretation of “spa”
and inclusion of cultural and traditional contexts;
 Informing investors of the opportunities that exist in the diverse and growing spa
industry; and
 Attracting qualified professionals to the spa industry.

The SRI team has arrived at the estimates presented in this report based on a
combination of primary and secondary research and economic modeling techniques,
including: a global survey that collected approximately 1,000 responses; intensive
research and data collection from national, international, and industry sources; and
interviews with high level executives in the spa industry. Together, these lines of
research were used to craft a tailored economic estimation model that attempts to
quantify an industry where enormous information and data gaps exist. In essence, this
study provides a snapshot of the global spa economy in 2007 for 210 economies
around the world.



I. Overview
Why study the Global Spa Economy?
SRI International was commissioned by the Global Spa Summit to quantify the size of
the global spa economy. The objectives of this study are as follows:

 To put forward a comprehensive framework to understand and quantify the scale
and impact of the global spa economy.
 To develop high-level, worldwide estimates that enable industry leaders, company
executives, investors, and policymakers to make informed business and policy
decisions based on a comprehensive, global understanding of the spa industry.
 To stimulate dialogue among all industry stakeholders regarding the definition,
measurement, and positioning of the global spa industry going forward.

Until now, no study has attempted to measure the size of the global spa industry, due
to a variety of factors, including: the diversity of the spa industry and markets across
countries and regions, the difficulty of defining a “spa,” the lack of country-level
information, and the difficulty of comparing data across countries. For the same
reasons, even attempts to count the number of spas or estimate the size of the spa
market at the country or regional level have been limited.

Few industries have organized at the global level to “measure themselves” and
present the worldwide economic impact of their industry. In fact, this study may be one
of the first attempts of its kind. In this regard, the global spa industry has a unique
opportunity to be a “pioneer” through this endeavor.

What this study is
This study is designed to be a landmark first step in developing a framework to
quantify the global spa industry and its related economy in 210 countries. The SRI
team has arrived at the estimates presented in this report based on a combination of
primary and secondary research and economic modeling techniques, including: a
global survey that collected approximately 1,000 responses; intensive research and
data collection from national, international, and industry sources; and interviews with
over 50 high-level executives in the spa industry. Together, these lines of research are
used to craft a tailored economic estimation model that attempts to quantify an
industry where enormous information and data gaps exist. In essence, this study
provides a snapshot of the global spa economy in 2007 for 210 countries, even given
the absence of data for 95% of these countries.



To conduct this study, SRI has employed an industry cluster framework that has been
widely used for more than 20 years by industry and government stakeholders around
the world. The cluster methodology is widely recognized as a useful tool for high-level
strategic planning, advocacy, and investment resource planning.

Such an approach allows industries to organize resources, structure their
collaboration, speak as one voice to policymakers and consumers, and conduct
advocacy and public relations efforts more effectively and efficiently.

What this study is not
This study is not structured as a global spa census; it does not attempt to count the
number of spas or add up their revenues across the globe. Such an approach would
be both time and cost prohibitive for any organization. In fact, the SRI team is
unaware of any industry that has conducted its own census at the global level –
precisely for this reason.

A number of high-quality national and regional spa industry studies have been
conducted by various consulting groups and associations. However, each study applies
different filters to quantify and “count” spas, and therefore such data is not
comparable across countries and regions. Furthermore, these studies have been
conducted for no more than 20 countries around the world, leaving a big gap in the
current state of knowledge regarding the global spa industry, particularly for fast
growing countries in Asia, Latin America, and the Middle East. To insist on a census
approach would thus be paralyzing and unproductive. This study is designed as an
important leap forward to provide a degree of quantification, inclusive of the 20 or
so countries where some spa industry data has been collected, as well as the 190
countries in which national-level spa industry data is nonexistent.

What we include as spas
An inherent goal of this study is to promote the value of flexibility in defining the term
“spa” and to understand its different interpretations by businesses and consumers
around the world. It is with this end in mind that we put forth the following criteria for
including spas in this study:

For the purpose of estimating the global spa economy, this study defines spas as
establishments that promote wellness through the provision of therapeutic and
other professional services aimed at renewing the body, mind, and spirit.

Most consumers and industry executives would agree that at its core – no matter its
size, form, or business model – a spa is an establishment that focuses on the promotion



of wellness. The concept of wellness, the healing traditions drawn upon, and the
therapeutic techniques applied differ dramatically from one country to the next.

Working within this framework, this study does not apply specific filters – such as
requiring therapeutic treatments to be water-based, or requiring an establishment to
be of a certain size or offer a certain combination of services – to define what is and
what is not part of the spa industry. A major value of this approach is that it allows
local, cultural, and historical wellness and healing contexts to be captured in
quantifying the size and impact of the spa economy.

Specifically, this study estimates the economic impact of establishments that consider
themselves as “spas” and market themselves as such – as well as establishments that
consumers would likely consider to be a “spa,” particularly in relation to unique
cultures and traditions – regardless of strict definitions used by the industry in other
contexts.

What this study tells us

 When viewed through the industry cluster framework, the spa industry is much
larger than it may initially appear.

 Given the spa industry‟s size, economic impact, and growth potential, there is a
colossal need for the industry and governments to collect and maintain
standardized information on the industry.

 We believe that a more, rather than less, inclusive approach to defining “spa” best
captures the current and future potential of the industry as it is viewed by
consumers and entrepreneurs. This broader approach provides a useful umbrella
under which spas will have the flexibility to apply appropriate filters in order to
differentiate themselves for the purposes of marketing to particular consumer
niches.



II. Analytical Framework
Estimating the size of the global spa economy requires two parallel, but interrelated,
sets of inquiry, each presenting its own unique set of challenges:

1. How does one define a spa? What does the spa industry encompass?
2. How does one quantify the size of the spa industry and the economic activities
related to it?
The challenge of defining the spa industry itself compounds an already difficult task of
measuring the economic impact of an industry that is relatively young, and for which
existing data around the world is scarce. Nevertheless, the research team conducting
this study has been able to gather and produce data that results in a fair
approximation of the global spa industry‟s economic impact. Over time, the data and
estimation methods used for this study can be refined for greater accuracy.

A. Defining The Spa Economy
1. What Is A Spa?
If you ask ten consumers in ten countries – say, Germany, Italy, Russia, China, Japan,
Thailand, United States, Mexico, Morocco, and United Arab Emirates – what they
would consider to be a spa, you are likely to get ten different answers.

The inherent challenge of measuring the size and impact of the spa industry is the
difficulty of defining what constitutes a “spa.” This dilemma is not unique to the spa
industry.

 In the tourism sector, for example, a very liberal and inclusive industry definition
would include not only spending by foreign visitors, but also all transportation,
retail, dining, recreation, and entertainment activities, whether these expenditures
are incurred by “real” tourists or by local residents. A more restrictive definition
might count only spending by foreign visitors or domestic residents taking a trip of
a certain distance or duration. Within the tourism community, there is no agreed
upon definition of what counts as a tourism “trip” for the purposes of measuring
tourism expenditures – does a trip have to exceed 50 miles or 60 kilometers away
from home to be counted, or does it have to involve an overnight stay? Tourism
statistics are produced by governments, nonprofits, international organizations,
and private research firms around the world, and each organization approaches
these definitional questions in a slightly different way.



 Information technology is another industry that poses definitional challenges. For
some studies, the IT industry encompasses all activities that might be considered
“high-tech” – it might include computer equipment and peripherals, semiconductors,
electronics, computer programming and design, IT consulting, telecommunications
equipment and services, and much more. On the other hand, some studies may
exclude the manufacturing of “hardware” such as computers, electronics, and
telecommunications devices – as these activities are becoming increasingly
“commoditized” and “low-tech” – and instead focus only on the higher value-
added services side of IT (such as programming, design, consulting, etc.). The
definition of the IT industry changes constantly, depending on the geographic
region being studied, the organization conducting the study, and the purpose and
objectives of the study.

For the spa industry, the definitional challenge is especially complex because the term
“spa” can incorporate many elements and is open to interpretation by spa operators,
consumers, and policymakers alike. While “spa” may be viewed as a relatively young
industry in its modern, Western archetype, its association with wellness and healing
links the industry to traditions and practices that date back thousands of years in some
cultures around the world. As economies and cultures become globalized, the blending
of modern and traditional therapeutic disciplines, and the melding of the science and
heritage of healing, have enriched the spa industry and increased consumer
recognition, even as this process creates challenges for the industry to define or
measure itself.

There is an ongoing, but perhaps healthy, tension among industry operators on the
definition of a spa. Currently the term “spa” is defined in a variety of ways, both
across different countries and regions and even within countries. Even the linguistic
origin of the word “spa” seems to be debated. Below we explore some of the existing
views and debates on what is a spa.

Using water-based or not as a definition
The linguistic origin of the term “spa” and whether the word is related to water is
unclear. According to some researchers, the term was derived from the name of a
Belgian town where mineral springs were used for healing purposes since medieval
times. According to some others, the word “spa” is an acronym of various Latin phrases
that mean “health through water.” A few other accounts trace the word to the old
Walloon word espa, meaning “fountain.”1 It is true that in many cultures spas are
closely tied to therapeutic treatments associated with water. Therefore, some would

1Jonathan Paul De Vierville, “Spa Industry, Culture, and Evolution,” Massage and Bodywork Magazine, August-
September 2003, www.massageandbodywork.com/Articles/AugSep2003/Cultureandevolution.html.



define a spa as only those establishments that offer authentic water-based therapeutic
treatments, prescribed and/or supervised by doctors or qualified professionals, in a
healing and relaxing setting. However, establishments have proliferated around the
world that offer a menu of services (including massage, body, and/or facial
treatments) that do not involve water-based therapies, and these establishments are
more often than not considered to be spas by the business operators and their
consumers.

Using size and services to identify spas for benchmarking
For the purposes of benchmarking or conducting industry censuses or counts, many
organizations have chosen to define a spa by its size (e.g., an establishment must have
at least five treatment rooms to be included as a benchmark) or by the types of
treatments offered (e.g., an establishment must provide more than one type of spa
service – facial treatments, body treatments, massage, or water-based therapeutic
treatments – to be included in the count). It should be noted that a number of
establishments that consumers around the world may consider to be “spas” may not
meet these criteria. For example, a small salon that has only four treatment rooms and
only offers facial treatments would be considered a “spa” by many consumers, but
may not be counted in benchmarking studies or censuses that use a size-based or
service-based definition.

Using an exclusive versus democratic (or mass market) definition
The proliferation of day spas, “value” spa chains, new business models such as mobile
spas, and the expansion/crossover of health clubs and beauty salons into the spa
industry have raised concerns about service quality and image amongst some in the
industry. On the high end of the market are the “brand name” and exclusive spas,
which offer ambience, luxury facilities, and high-quality service delivered by well-
trained staff at prices aimed at upscale consumers. On the other end of the market
are establishments that offer services for a fraction of the price, aimed at the mass
market and consumers seeking those price points. They may specialize and offer only
one type of service, such as massage. These market developments raise questions
about who should be qualified to use the term “spa” for marketing and promotion
purposes.

Defining spas in the local, cultural, and historical context
Rising levels of income, education, and sophistication among travelers and consumers
worldwide have dramatically elevated the consciousness and desirability of treatments
that are derived from historical and culturally based healing traditions, techniques,
and ingredients. The market potential of this development is being captured by
global, premium-brand spas that have expanded their service menus to incorporate



these kinds of treatments. At the same time, establishments that offer traditional
bathing, healing, herbal, and therapeutic treatments derived from centuries-old
practices also recognize the potential of branding themselves as spas, and some are
investing in new services, equipment, facilities, as well as modifying their ambience.
European bath houses and saunas, Japanese onsens, Turkish-style hammams, Indian
ayurveda centers, and Thai massage establishments do not necessarily fit the
traditional Western concept or business model of spas, but a certain portion of these
have begun and will continue to cross over to the spa market as they evolve and
adapt to the needs and desires of modern consumers.

Taking into account these emerging market trends, and for the benefit of the industry,
this study has adopted a decidedly inclusive approach in its estimation of the global
spa economy. As stated above, an inherent goal of this study is to promote the value
of flexibility in defining the term “spa” and to understand its different interpretations
by businesses and consumers around the world.

Spa Typologies
Working within this framework, the global spa economy model captures five general
categories, or “typologies,” of spas, as described below.

 Day/Club/Salon Spas. Facilities that offer a variety of spa services (e.g.,
massage, facials, body treatments, etc.) by trained professionals on a day-use
basis. They typically offer private treatment rooms and a quiet and peaceful
atmosphere. Club spas are similar to day spas, but operate out of facilities whose
primary purpose is fitness. Salon spas are also similar in nature, but operate out of
facilities that provide beauty services (such as hair, make-up, nails, etc.).

 Destination Spas and Health Resorts. Offer a full-immersion spa experience in
which all guests participate. All-inclusive programs provide various spa and body
treatments along with a myriad of other offerings such as: fitness activities, healthy
cuisine, educational classes, nutrition counseling, weight loss programs, preventive
or curative medical services, mind/body/spirit offerings, etc. Because of their
similar business structures (e.g., overnight stays in which all guests participate in
full-immersion spa and wellness-based activities), this report includes traditional
European-style health resorts and Indian ayurvedic resorts in the same category as
destination spas.2

2The estimation methodology counts all revenues and employment for these properties as being part of the spa
economy, including room revenues, food and beverage revenues, and other non-spa service revenues.



 Hotel/Resort Spas. Similar to a day spa, but the spa facility is located within a
resort or hotel property. Unlike destination spas, at hotel/resort spas services are
typically paid for on an à la carte basis, and meals are not included. Spa
treatments and services generally complement a hotel stay or a wide range of
other activities at a resort.

 Medical Spas. A spa facility that operates under the full-time, on-site supervision
of a licensed healthcare professional. Provides comprehensive medical and/or
wellness care in an environment that integrates spa services with traditional or
alternative medical therapies and treatments.

 “Other” Spas. This category encompasses all other spas that are not captured by
the categories described above, including the following:
 Historically-/Culturally-Based Spas. These spa facilities vary from country-to-
country and have spun out of historical healing traditions, techniques, and
ingredients, such as: European bath houses and saunas, Japanese onsens and
sentos, Turkish-style hammams, Indian ayurveda centers, Thai massage
establishments, Chinese medicine/massage practitioners, etc. This study
attempts to capture the portion of such facilities that have evolved into spas by
adding spa-like services (e.g., massage, facials, body treatments, wellness
education, etc.).
 Mobile Spas. Professional practitioners provide spa services on-site at a
customer‟s home or office.
 Single Service Spas. Similar to a day/club/salon spa, but specializes in
providing only one type of spa service (e.g., just massage or just facial
treatments).
 Cruise Ship Spas. Similar to a hotel/resort spa, but located on board a cruise
ship.
 Mineral/Hot Springs Spas. A day-use spa facility with an on-site source of
natural mineral, thermal, or sea water that is used in spa treatments. “Stay”
spas that use an on-site source of mineral, thermal, or sea water for treatments
are classified as hotel/resort spas or destination spas/health resorts,
depending on their characteristics.

2. The Spa Industry Cluster
In this study of the global spa economy, SRI has employed an industry cluster
framework that has been widely used since the 1980s by industry and government
stakeholders around the world. The industry cluster concept is recognized as a useful
analytical and organizing mechanism for high-level strategic planning, advocacy, and



investment resource planning. Industry leaders have found the cluster concept powerful
because it links together a broad cross-section of businesses and organizations that
are interconnected economically to relate to each other within a coherent framework.
Such an approach allows industries to organize resources, structure their collaboration,
speak as one voice to policymakers and consumers, and conduct advocacy and public
relations efforts more effectively and efficiently.

When viewed through this framework, the spa industry cluster is much larger than it
may initially appear. In order to estimate the size of the global spa economy, SRI has
defined and delineated the specific businesses and industry segments that comprise
the spa industry cluster. The spa industry cluster framework – or how these industry
segments relate to one another – is illustrated in the following diagram.

The Spa Industry Cluster


Beauty & Beauty
Spa Capital Spa-Related Products Industry
Spa & Tourism Fitness & Fitness
Education Products Industry

Spa
Spa Media, Medicine Industry
Associations Spa-Related
& Events Real Estate Healthy Foods &
Spa-Branded Nutrition Industry
Products


The spa industry cluster consists of core, enabled, and associated industries:

 Core industries include spa facility operations; spa capital investments (e.g.,
construction of new spas, spa renovations and expansions, etc.); spa consulting; spa
education; spa media, events, and associations; and spa-branded products.

 Enabled industries are directly induced by the core spa industry and include spa-
related tourism and spa-related real estate.



 Associated industries represent a selected set of industries that are interconnected
with the spa industry through a common emphasis on health and wellness, and, to
some extent, common sales and marketing channels. Associated industries are
closely related to the spa industry, but not strictly a part of it; they are directly
promoted by the spa industry, and, in turn, the spa industry is promoted by them.
Associated industries include: beauty and beauty products; fitness and fitness
products; beauty and wellness medicine; and healthy foods and nutrition.

B. Quantifying The Size Of The Spa Economy
Determining what is included in the spa industry is only the first step in estimating the
size of the global spa economy. Quantifying the size of the spa industry is an
ambitious endeavor that poses another set of challenges:

 There is a dearth of data on the spa industry for the majority of countries around
the world.

 Within the traditional industry classification frameworks used by national
governments and international organizations, it is not possible to separate spas
from other related beauty, fitness, tourism, and medical industries. Therefore,
conventional public sector data sources are of limited use when conducting
research of this nature.

 A number of high-quality spa industry studies have been conducted, but these
studies cover no more than 20 countries around the world. Big data and research
gaps exist for the fast-growing countries in Asia, Latin America, and the Middle
East. Furthermore, each of these studies utilizes different methodologies for
qualifying and quantifying spas, making it difficult to compare one study‟s findings
to another.

Faced with these challenges, the SRI team pursued multiple lines of inquiry gather data
from primary and secondary sources, including: a global survey that collected
approximately 1,000 responses; national and international-level qualitative and
quantitative data and reports; existing spa industry reports; and over 50 high-level
executive interviews. These inputs were used to create a consistent and comparable
estimation model to quantify the spa industry in 210 countries, including those where
major data gaps exist.

An important lesson that emerged from this exercise is the colossal need for the
industry and governments to collect and maintain information on the spa industry. It is
the hope of the research team that this small step is a productive one for the industry.



III. The 2007 Spa Economy
SRI estimates that the total size of the global spa economy was $254.7 billion in
2007. This estimate includes $60.3 billion in core spa industries and an additional
$194.4 billion in spa-enabled industries, as shown in the table below.

Size of the Global Spa Industry, 2007 (US$ billions)
Core Spa Industries $60.31
Spa Facility Operations $46.81
Spa Capital Investments $12.99
Spa Education $0.31
Spa Consulting $0.07
Spa Media, Associations, & Events $0.13
Spa-Branded Products n.a.
Spa-Enabled Industries $194.35
Spa-Related Hospitality & Tourism $106.05
Spa-Related Real Estate $88.30
Total Spa Economy $254.66

Spa facility operations represent $46.8 billion in revenues, or 78% of the “core”
industry. The spa industry has been experiencing rapid growth in many regions around
the world, and this growth is reflected in a significant level of capital investment,
estimated at over $12.9 billion in 2007. The other “core” sectors – including
education; consulting; and media, associations, and events – are relatively small by
comparison, but still represent important pieces of the industry. Together, these sectors
earned an estimated $0.51 billion in revenues in 2007.

A significant amount of activities in the tourism and real estate sectors are influenced
by the burgeoning spa, health, and wellness trend. SRI estimates that $106.0 billion in
global tourism and hospitality revenues were “enabled” by the spa industry in 2007.
Additionally, an estimated $88.3 billion in global real estate construction revenues
were “enabled” by the spa lifestyle concept in 2007.

The spa industry sits solidly within a broader set of lifestyle, health, and wellness-
driven industries. Four “spa lifestyle associated industries” have been identified in this
study as being directly interconnected with the spa industry. As shown in the following
diagram, these four associated industries represent a global market that exceeded $1
trillion in 2007.



The Spa Industry Cluster (US$ billions)

$46.81 Beauty & Beauty
Products Industry
Spa Capital Spa-Related $500.21
$12.99 & Tourism Fitness & Fitness
Spa
$106.05 Products Industry
Education
$0.31 $241.27
Spa
Spa Media, $0.07 Medicine Industry
Associations Spa-Related $195.84
& Events Real Estate
$0.13 $88.30 Healthy Foods &
Spa-Branded
Products Nutrition Industry
n.a. $162.35

$60.31 $194.35 $1,099.68

Spas are a sizable global industry when compared to other higher profile recreation
and leisure industries. With spa facility operations earning nearly $47 billion globally,
the spa industry is smaller than the more established golf and commercial sports
industries. However, the spa industry is significantly larger than the global motion
picture industry as measured by box office sales, as well as the global cruise industry.

Comparison of Spas with Other Global Industries (US$ billions)
Core Spa Industries $60
Commercial Sports Industry3 $150
Golf Industry (golf facility operations)4 $80
Motion Picture Industry (box office sales)5 $27
Cruise Industry6 $21

3 Parker, Philip M., The 2007-2012 World Outlook for Commercial Sports, ICON Group Ltd.: 2006.
4 Estimated by SRI International.
5 Motion Picture Association of America, Theatrical Market Statistics 2007.
6 Business Research & Economic Advisors, The Contribution of the North American Cruise Industry to the U.S.

Economy in 2006, Prepared for Cruise Lines International Association, August 2006.



A. Core Spa Industries
1. Spa Facility Operations
Spa facility operations represent the core of the spa economy. They include the wide
variety of services offered at spas – including massages, facials, body treatments,
salon services, water-based treatments, health assessments, and much more – as well
as sales of products at spas.

In 2007 there were an estimated 71,762 spas operating around the world, including:

 45,113 day/club/salon spas;
 11,489 hotel/resort spas;
 1,485 destination spas and health resorts;
 4,274 medical spas; and
 9,310 “other” spas.7
Together, these spas generated an estimated $46.8 billion in revenues and employed
an estimated 1.2 million persons in 2007.

Global Spa Facilities by Type, 2007
Estimated Total
Estimated Total Estimated Total
Spa Revenues
Number of Spas Spa Employment
(US$ billions)
Day/Club/Salon Spas 45,113 $21.0 659,106
Hotel/Resort Spas 11,489 $12.6 269,363
Destination Spas & Health Resorts 1,485 $6.2 112,239
Medical Spas 4,274 $4.6 51,843
Other Spas 9,310 $2.4 130,958
Total 71,672 $46.8 1,223,510

Global Distribution of Spas,
by Type of Spa, 2007

7 Definitions of each type of spa are provided in section II of this report.



Number of Spas Worldwide, by Type of Spa, 2007 In terms of numbers, day/club/salon spas
comprise the majority of spas around the
Destination
Hotel/Resort world, accounting for about 63% of all spa
Spas
Spas & Health
Resorts
(11,489) 16.0% facilities. At 16%, hotel/resort spas are
(1,485) 2.1% second in terms of numbers. Other spas,
Medical Spas
(4,274) 6.0%
medical spas, and destination spas/health
resorts are smallest in terms of numbers, at
Other Spas Day/Club/Salon 13%, 6%, and 2%, respectively.
(9,310) 13.0% Spas
(45,113) 62.9%
In terms of revenues, however, hotel/resort
spas and destination spas/health resorts
account for a much larger share of the market
Revenues of Spas Worldwide, by Type of Spa, 2007
as compared to their overall number of
facilities. This is because these types of spas
typically have much higher average revenues
Hotel/Resort per facility than do day/club/salon spas.
Spas
($12.6) 26.9% Day/club/salon spas account for only about
Day/Club/Salon 45% of global revenues (as compared to
Spas
($21.0) 44.9%
63% of global facilities). They are closely
Destination followed by hotel/resort spas and destination
Spas & Health
Resorts spas/health resorts, which together account
($6.2) 13.2%
for 40% of global revenues. Medical spas,
Medical Spas Other Spas which also have higher average revenues per
($4.6) 9.9% ($2.4) 5.1%
(US$ billions) facility, account for 10% of global revenues,
Employment by Spas Worldwide, by Type of Spa, 2007
but only 6% of facilities. Other spas tend to
be smaller in size and comprise only 5% of
global industry revenues.
Hotel/Resort
Spas
(269,363) 22.0% A little over half of all spa employees around
the world work in day/club/salon spas.
Destination
Spas & Health Hotel/resort spas also account for a large
Resorts Day/Club/Salon
(112,239) 9.2% Spas share of industry employment, with 22% of
(659,106) 53.9%
Medical Spas the workforce. This is followed by destination
(51,843) 4.2%
spas/health resorts, with 9% of employment,
Other Spas
(130,958) 10.7% and other and medical spas (with 11% and
4% of employment, respectively).



The spa industry has a strong and growing presence in all regions of the world, but it
is also heavily concentrated in a few regions and countries. Together, Europe, North
America, and Asia-Pacific account for over 90% of industry revenues.

Global Spa Facilities by Region, 2007
Estimated Total Spa
Estimated Total Estimated Total Spa
Revenues
Number of Spas Employment
(US$ billions)
Europe 22,607 $18.4 441,727
Asia-Pacific 21,566 $11.4 363,648
North America 20,662 $13.5 307,229
Middle East-North Africa 1,014 $0.7 20,938
Latin America-Caribbean 5,435 $2.5 82,694
Africa 389 $0.3 7,273
Total 71,672 $46.8 1,223,510

Among the world‟s top 20 largest spa-going countries in terms of revenues, all are
located within the three top regions (as shown in the table above), with the exception
of Mexico and Argentina. The five largest countries in terms of revenue (United States,
Japan, Germany, France, Italy) account for over 55% of industry revenues worldwide.
The twenty largest countries, as shown in the table below, account for 85% of world
revenues. Eleven countries in the world have spa revenues over $1 billion annually.

Top 20 Spa Countries, 2007
Estimated Total Spa
Estimated Total Estimated Total Spa
Revenues
Number of Spas Employment
(US$ billions)
United States 17,845 $12.06 275,788
Japan 6,442 $5.67 104,246
Germany 3,971 $3.84 86,917
France 2,746 $2.30 54,430
Italy 2,391 $2.24 50,942
United Kingdom 2,468 $1.72 43,835
China 4,518 $1.72 82,113
Spain 1,816 $1.53 34,637
Canada 2,817 $1.46 31,441
South Korea 2,465 $1.26 31,974
Austria 999 $1.22 24,072
Mexico 1,855 $0.87 29,793
Russia 1,625 $0.82 30,653
Switzerland 555 $0.70 14,307
Australia 674 $0.44 6,938
Greece 474 $0.43 9,515
Argentina 1,168 $0.42 14,246
Thailand 1,401 $0.39 48,680
India 2,359 $0.38 22,175
Hong Kong 578 $0.37 9,793



Spa Industry Profile: Europe

 In terms of revenues, number of spas, and employment, Europe is the largest
regional spa market in the world. It had an estimated 22,607 spas in 2007,
earning $18.4 billion in revenues and employing 441,727 people.

 Europe‟s massive spa market has evolved from bathing and wellness traditions that
date back to medieval, and even Roman, times. The region has a deep-rooted spa
and wellness culture that emphasizes the use of natural and water-based elements
for therapeutic, curative, and preventive treatments.

 In Europe, the “other” spas category primarily captures the extensive bath house
and sauna facilities that are especially prevalent in northern and eastern European
countries and in the former Soviet Bloc. A selected portion of these facilities in each
country is estimated to have crossed over into the spa industry by adding spa
facilities and services. Because they are smaller-sized establishments, these spas
represent approximately 2% of European spa market revenues.

 Europe is also unique in that it is home to a large number of health resorts that
emphasize wellness, traditional healing therapies, and medically-based services.
For instance, in Russia and eastern Europe, there are hundreds, or even thousands,
of sanatoriums dating from the Soviet era, which offer wellness-based
healing/medical services and frequently require a long-term stay. A large portion
of these sanatoriums – many of which were state-owned or subsidized and have a
hospital-like atmosphere – are now out-moded or even closed down. However, a
small number are being modernized and re-cast as higher-end health resorts and
are crossing over into the spa industry. Overall, health resorts and destination spas
represent an estimated 27% of European spa industry revenues.

Spa Facilities in Europe, 2007
Estimated Total
Spa Revenues
(US$ billions)
Destination Spas/Health Resorts 1,202 $4.93 91,962
Medical Spas 913 $0.87 9,248
Other Spas 1,262 $0.39 18,927
Total 22,607 $18.35 441,727



Europe’s Top Ten Spa Markets, 2007
Estimated Total Estimated Total Spa Revenues
Number of Spas (US$ millions)
Germany 3,971 $3,842.7
France 2,746 $2,299.0
Italy 2,391 $2,237.5
United Kingdom 2,468 $1,724.0
Spain 1,816 $1,527.0
Austria 999 $1,220.8
Russia 1,625 $823.4
Switzerland 555 $701.9
Greece 474 $426.8
Netherlands 507 $366.1

“Typical” European Spas
 As a region, Europe encompasses a wide range of countries at vastly different levels
of income and development. PPP GDP per capita8 in Europe ranges from under
$2,000 in some of the former Soviet countries to over $60,000 in the most wealthy
western and northern European countries. Because of the heterogeneity of the
European market, typical spa sizes vary dramatically across different countries within
the region.
 Average day/club/salon spas are assumed to range in size from $125,000 to
$660,000 in revenues and from 5 to 25 employees.
 The “other” spas category, which primarily captures establishments that have their
roots in Europe‟s sauna and bath house traditions, are estimated to be to be slightly
smaller than day/club/salon spas.
 Typical medical spas are estimated at $320,000 to $1.2 million, with 4 to 12
employees.
 Average hotel/resort spa revenues range from $450,000 to $1.5 million and from 10
to 24 employees across different countries in the region.
 Destination spas and health resorts are comparatively larger, because the entire
revenues and employment of these facilities (including lodging, food, spa, and all
other services) are counted as part of the spa economy. On average, they range from
$1.5 to $5.5 million and 30 to 100 employees.
Country Coverage: The data presented here covers a total of 52 countries across western, eastern, and
central Europe, as well as the former Soviet Union, including: Albania, Andorra, Armenia, Austria,
Azerbaijan, Belarus, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kazakhstan,
Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Netherlands,
Norway, Poland, Portugal, Romania, Russia, San Marino, Serbia & Montenegro, Slovakia, Slovenia, Spain,
Sweden, Switzerland, Tajikistan, Turkey, Turkmenistan, Ukraine, United Kingdom, Uzbekistan.

8 Purchasing power parity GDP per capita is the GDP per capita adjusted according to the cost of goods and
services in each country, allowing for a more accurate comparison of the standard of living across countries.



Spa Industry Profile: Asia-Pacific

 Asia-Pacific is the world‟s third largest spa market in terms of revenues and second
largest market in terms of number of spas. The industry size is estimated at $11.4
billion in 2007, with 21,566 spas and 363,648 employees.

 Spas are a relatively new, but high growth industry in Asia-Pacific. Across the
region – and especially in the emerging market countries of south/southeast Asia
and the Pacific islands – the market is typically dominated by large hotel/resort
spas catering to international tourists. However, some of the middle and upper
income countries (namely, Japan, Korea, Hong Kong, Singapore, Australia, and
New Zealand) also have a significant day/club/salon spa sector serving the local
market. Medical spas are a new, but rapidly growing sector in parts of Asia,
linked with a rising interest in medical tourism in the region.

 While the Asian spa industry is considered to be “new” based on its
modern/Western conceptualization, the region has a remarkable number of
culturally-based healing and wellness therapies that have evolved over thousands
of years. Facilities and practitioners that offer these traditional services are
beginning to see the value of adding spa services and amenities and aligning
themselves with the spa industry. The “other” spas category for Asia-Pacific
attempts to capture this trend by quantifying the number of traditional
practitioners that have crossed into the spa market. These traditions vary from
country-to-country and include: onsens and sentos in Japan, bath houses in Korea,
ayurveda centers in India, Thai massage practitioners in Thailand, Chinese
medicine/massage practitioners in China and other southeast Asian countries, and
so on. These “emerging” spas represent an estimated 13% of industry revenues in
Asia-Pacific.

Spa Facilities in Asia-Pacific, 2007
Estimated Total
Spa Revenues
(US$ billions)
Destination Spas/Health Resorts 82* $0.28 3,937
Medical Spas 939 $1.05 12,430
Other Spas 6,796 $1.44 104,387
Total 21,566 $11.39 363,648
*This
figure is larger than might be expected because it includes a number of health resorts in Australia and New Zealand,
as well as ayurvedic resorts in India.



Asia’s Top Ten Spa Markets, 2007
Japan 6,442 $5,668.0
China 4,518 $1,718.7
South Korea 2,465 $1,255.7
Australia 674 $440.2
Thailand 1,401 $393.8
India 2,359 $383.9
Hong Kong 578 $374.3
Singapore 553 $329.8
Taiwan 587 $247.7
Indonesia 878 $164.6

“Typical” Asian Spas
 Asia-Pacific has a handful of developed/wealthy economies with per capita PPP
GDPs in the $30,000 to $45,000 range (such as Australia, New Zealand, Hong Kong,
Japan, and Singapore), along with a large number of low income countries with
incomes of $1,500 to $3,000. Average spa sizes and revenues vary accordingly.
 “Typical” day/club/salon spas in Asia-Pacific range from $75,000 to $800,000 of
revenues and 6 to 25 employees, depending on a country‟s level of development.
 “Other” spas include Japanese onsens, Indian ayurveda centers, Thai and Chinese
massage practitioners, and other culturally-rooted wellness traditions that have
morphed into spas. They are typically estimated to be two-thirds to one-half the size
of day/club/salon spas.
 Asian hotel/resort spa revenues are comparable to those in other high income regions
due to a concentration of wealthy clientele among locals and tourists. This sector is
segmented by upscale, globally branded spas and mid-range hotel/resort spas
serving a growing local middle class market in countries such as China and India.
Average Asian hotel/resort spa revenues are assumed to be $250,000 to $2.2
million, with 10 to 37 employees.
 Most destination spas and health resorts are estimated at $1 million to $5 million and
30-125 employees (including lodging and food in addition to spa services). At the
high end of the market are a handful of premier destination spas with revenues
upwards of $20 million. At the low end of the market are a significant number of
ayurveda-based spa resorts in India that cater to both the local and foreign market.
 Asian medical spas are estimated to range, on average, from $750,000 to $1.3
million, and 10 to 17 employees. They are a relatively new portion of the market in
Asia and are assumed to be located only in the higher income countries.
Country Coverage: This data encompasses 43 countries across the Asia-Pacific region: American Samoa,
Australia, Bangladesh, Bhutan, Brunei, Cambodia, China, Fiji, French Polynesia, Guam, Hong Kong, India,
Indonesia, Japan, Kiribati, Laos, Macau, Malaysia, Maldives, Marshall Islands, Micronesia, Mongolia,
Myanmar, Nepal, New Caledonia, New Zealand, North Korea, Northern Mariana Islands, Pakistan, Palau,
Papua New Guinea, Philippines, Samoa, Singapore, Solomon Islands, South Korea, Sri Lanka, Taiwan,
Thailand, Timor-Leste, Tonga, Vanuatu, Vietnam.



Spa Industry Profile: North America

 The North American spa industry ranks second in the world in terms of revenues
and third in the world in terms of the number of spas. The region‟s estimated
20,662 spas had approximately $13.5 billion in revenues and 307,229
employees in 2007.

 The North American market is dominated by day/club/salon spas and hotel/resort
spas, which together comprise nearly 75% of industry revenues in the region.

 Both the United States and Canada have highly-developed spa markets, but
industry segments continue to grow and new business models continue to emerge in
both countries. An increasing number of mobile establishments are offering spa
services on the premises of a customer‟s home or office. There is also a growing
number of establishments that specialize in a single spa service, such as massage
or facials, and cater to “entry-level” spa-goers at lower price points. While these
establishments may not be considered as true “spas” under strict industry
definitions, they are helping to bring the spa concept to a broader portion of the
consumer market. The “other” spas category in North America captures these
emerging specialty spas, as well as cruise ship spas. This category represented
about 4% of industry revenues in 2007.

Spa Facilities in North America, 2007
Estimated Total
Spa Revenues
(US$ billions)
Destination Spas/Health Resorts 138 $0.61 11,281
Medical Spas 2,081 $2.39 26,332
Other Spas 998 $0.54 6,400
Total 20,662 $13.53 307,229



North America’s Spa Markets, 2007
United States 17,845 $12,063.2
Canada 2,817 $1,462.2

“Typical” North American Spas
 Average incomes in the United States and Canada are among the highest in the world,
and average spa revenues are accordingly quite high as compared to those in
developing and middle-income countries.
 Day/club/salon spas are estimated to range, on average, from $200,000 to
$500,000 in revenues, and larger establishments may exceed $1 million in revenues.
They typically range from 8 to 15 employees.
 The North American market continues to pioneer new business models, such as “value”
spa chains and mobile spas, which are proliferating rapidly. The “other” spas
category primarily captures these establishments, which tend to be slightly smaller than
day/club/salon spas, typically ranging from $100,000 to $400,000 of revenues and
from 5 to 10 employees.
 Average hotel/resort spas in North America earn $850,000 to $1.8 million in
revenues, with 11 to 35 employees.
 Destination spas and health resorts can range from $2.5 million to $20 million and
upwards, and from 40 to 100+ employees.
 Medical spas are an increasing portion of the North American market (representing
18% of revenues). They are estimated to earn an average of $1.2 million annually
and have 12 to 15 employees.

Country Coverage: For this study, the North American region includes the United States and Canada.



Spa Industry Profile: Middle East-North Africa

 The Middle East and North Africa had approximately 1,014 spas, earning about
$747 million in revenues and employing 20,938 persons in 2007.

 The spa industry in Middle East-North Africa differs significantly from that of other
regions in that it is dominated by the hotel/resort spa sector. Hotel/resort spas
represent over 60% of industry revenues in the Middle East, as compared to 25%
in North America, Europe, and Asia-Pacific. Day/club/salon spas are still a
comparatively small portion of the industry in the Middle East and North Africa,
with 19% of revenues in 2007.

 The Middle East has a historic bathing tradition linked with hammams or Turkish
baths, which have their roots in the early days of Islam and which were derived
from Roman and Greek bathing traditions. Like other culturally-rooted wellness
traditions and therapies around the world, the hammams have many synergies with
the spa industry, and some are beginning to add upgraded spa facilities and
services. Conversely, many traditional day spas and hotel/resorts spas are adding
a cultural element to their services by offering specialized treatments that are
grounded in hammam bathing traditions. The “other” spas category in the Middle
East region attempts to quantify the traditional hammams and bath houses that
have crossed over to the spa sector – this category represented just over 1% of
industry revenues in 2007.

Spa Facilities in Middle East-North Africa, 2007
Estimated Total
Spa Revenues
(US$ billions)
Day/Club/Salon Spas 440 $0.14 6,259
Hotel/Resort Spas 441 $0.45 12,554
Medical Spas 26 $0.03 331
Other Spas 99 $0.01 494
Total 1,014 $0.75 20,938



Middle East-North Africa’s Top Ten Spa Markets, 2007
United Arab Emirates 212 $267.9
Israel 190 $116.2
Tunisia 41 $86.2
Saudi Arabia 96 $52.4
Egypt 146 $43.7
Oman 25 $32.1
Morocco 79 $30.8
Bahrain 24 $27.4
Kuwait 33 $22.2
Qatar 19 $19.9

“Typical” Middle Eastern-North African Spas
 The Middle East-North Africa region is split between a handful of wealthy Gulf
countries (most with PPP GDPs per capita in the range of $20,000 to $30,000), along
with a number of low-to-middle income countries (with per capita incomes of $4,000
to $8,000). Because the Middle East spa market is dominated by hotel/resort spas
catering to international tourists, average spa revenues and sizes are somewhat less
tied to country income levels than they are in other countries around the world.
 The average hotel/resort spa in the region is estimated to range from $500,000 to
$1.5 million and have 14 to 43 employees. There are also a small number of very
high-end destination spas, health resorts, and thalassotherapy resorts that average
$10 to 15 million of revenues and 150+ employees.
 Typical day/club/salon spas are estimated to average from $125,000 to $550,000
of revenues and from 7 to 28 employees.
 In the Middle East, the “other” spas category captures establishments that have
evolved from the hammam and Turkish bath tradition. They are assumed to be about
one-half to one-quarter of the size of day/club/salon spas.
 There are a handful of medical spas serving a wealthy clientele in the Gulf countries.
These spas are estimated to average $1 million of revenues and 13 employees.

Country Coverage: The Middle East-North Africa region includes 20 countries: Afghanistan, Algeria, Bahrain,
Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria,
Tunisia, United Arab Emirates, West Bank and Gaza, Yemen.



Spa Industry Profile: Latin America-Caribbean

 Latin America-Caribbean is the fourth largest spa region in the world, but its
industry is significantly smaller than those of the top three regions (Europe, North
America, and Asia-Pacific). It had an estimated 5,435 spas, with revenues of $2.5
billion and employment of 82,694 persons in 2007.

 The spa market in Latin America-Caribbean is evenly split between
day/club/salon spas and hotel/resort spas, each accounting for about 39-40% of
industry revenues in 2007.

 The Andes region, stretching from Panama in the north to the Patagonia region in
southern Chile and Argentina, is home to thousands of hot/thermal springs. Many
of these springs have been developed into resorts and bathing facilities, primarily
catering to local and regional tourists. While many are very basic, a portion of
these establishments offer a higher grade of services, amenities, and
accommodations and have crossed over to the spa industry. The “other” spas
category in Latin America-Caribbean quantifies this very small sector of the
industry, which accounted for less than 1% of overall industry revenues in 2007.

Spa Facilities in Latin America-Caribbean, 2007
Estimated Total
Spa Revenues
(US$ billions)
Medical Spas 313 $0.29 3,478
Other Spas 154 $0.01 740
Total 5,435 $2.52 82,694

Latin America-Caribbean’s Top Ten Spa Markets, 2007
Mexico 1,855 $868.6
Argentina 1,168 $419.8
Brazil 643 $284.2
Puerto Rico 177 $114.8
Colombia 250 $102.6
Chile 199 $102.0
Dominican Republic 171 $75.0
Venezuela 156 $70.7
Uruguay 76 $41.7
Bahamas 66 $39.1



“Typical” Latin American-Caribbean Spas
 The Latin America-Caribbean region is comprised of predominantly low- and middle-
income countries, with PPP GDP per capita ranging from $3,000 to $15,000. A
handful of Caribbean countries have average incomes that exceed $20,000 per
capita (e.g., Aruba, Barbados, British Virgin Islands, Cayman Islands, and Bermuda).
Accordingly, average spa revenues are lower in this region as compared to other
wealthier and more developed regions of the world.
 A number of Latin American countries have a strongly-rooted beauty culture (e.g.,
Colombia, Venezuela), and therefore have a higher than average number of
day/club/salon spas and medical spas relative to their income levels. These countries
also have a growing medical tourism market, which supports the growth of medical
spas.
 Day/club/salon spas revenues are estimated to average $150,000 to $300,000, and
employment ranges from 12 to 20 people.
 “Other” spas captures a small number of mineral/thermal springs-based day spas
scattered throughout the Andes region. They are assumed to be about one-third the
size of the larger day/club/salon spas.
 Hotel/resort spas have estimated revenues of $450,000 to $850,000 and employ 15
to 23 people on average. However, there is significant investment activity in this
region, and new hotel/resort spas currently opening in the region are expected to
have much higher revenue models.
 The existing destination spas and health resorts (many of which are built around
mineral/thermal springs) typically cater to the local/regional market and have $1.5 to
$3 million of revenues. There are a handful of upscale, internationally-branded
destination spas with higher revenue profiles ($10 to 15 million+).
 Medical spas are assumed to be concentrated primarily in Mexico and several
middle-income Central and South American countries, with an estimated size of around
$750,000 to $1 million and 9 to 17 employees.

Country Coverage: The Latin America-Caribbean region covers 45 countries: Anguilla, Antigua & Barbuda,
Argentina, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Brazil, British Virgin Islands, Cayman
Islands, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada,
Guadeloupe, Guatemala, Guyana, Haiti, Honduras, Jamaica, Martinique, Mexico, Netherlands Antilles,
Nicaragua, Panama, Paraguay, Peru, Puerto Rico, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent & the
Grenadines, Suriname, Trinidad & Tobago, Turks & Caicos Islands, U.S. Virgin Islands, Uruguay, Venezuela.


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