Spa Economy Report Final

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,
nonprofit 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 2008 SRI International

Global Spa Summit

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.
Copyright Global Spa Summit 2008 1 SRI International

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

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
wellnessdriven 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 valueadded 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
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.
1 Jonathan Paul De Vierville, “Spa Industry, Culture, and Evolution,” Massage and Bodywork Magazine,
AugustSeptember 2003, www.massageandbodywork.com/Articles/AugSep2003/Cultureandevolution.html.
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
welltrained 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
 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
2 The 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.
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-
tocountry 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
c
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
sparelated 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)


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
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
wellnessdriven 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 Industry 3
$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
Number of Spas Worldwide, by Type of Spa, 2007 In terms of numbers, day/club/salon
spas comprise the majority of spas
Destination
Hotel/Resort
Spas
around the world, accounting for
Spas & Health (11,489) 16.0
Resorts
%
about 63% of all spa facilities. At
(1,485) 2.1%
16%, hotel/resort spas are second in
Medical Spas
(4,274) 6.0%
7 Definitions of each type of spa are provided in section II of this report.

Copyright Global Spa
Other Summit 2008
Spas Day/Club/Salon 16 SRI International
(9,310) 13.0% Spas
(45,113) 62.9
%
Revenues of Spas Worldwide, by Type of Spa, 2007

Hotel/Resort
Spas
($12.6) 26.9%
terms of numbers. Other spas, medical spas, and destination spas/health resorts are
Day/Club/Salon
Spas
smallest in terms of 44.9%
($21.0) numbers, at 13%, 6%, and 2%, respectively.
Destination
Spas & Health
In terms of revenues, however, hotel/resort spas and destination spas/health resorts
Resorts
($6.2) 13.2%
account for a much larger share of the market as compared to their overall number of
facilities.
Medical SpasThis is because these types of spas typically have much higher average
Other Spas
($4.6) 9.9% ($2.4) 5.1%
(US$revenues
billions
) per facility than do day/club/salon spas. Day/club/salon spas account for
onlybyabout
Employment 45% of by
Spas Worldwide, global revenues
Type of Spa, 2007 (as compared to 63% of global facilities). They
are closely followed by hotel/resort spas and destination spas/health resorts, which
together account for 40% of global revenues. Medical spas, which also have higher
Hotel/Resort
average
Spas revenues per facility, account for 10% of global revenues, but only 6% of
(269,363) 22.0%
facilities. Other spas tend to be smaller in size and comprise only 5% of global
industry revenues.
Destination
Spas & Health
Resorts Day/Club/Salon
A little over half
(112,239) 9.2
% of all% spa employees around the world work in day/club/salon spas.
Spas
(659,106) 53.9
Hotel/resort
Medical Spas spas also account for a large share of industry employment, with 22% of
(51,843) 4.2
%
theOther
workforce.
Spas
This is followed by destination spas/health resorts, with 9% of
employment, and other and medical spas (with 11% and 4% of employment,
(130,958) 10.7
%
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
Estimated Total Spa Estimated Total
Number of Spas Revenues Spa 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 $1
billion annually.
Top 20 Spa Countries, 2007
Estimated Total
Estimated Total Spa Estimated Total
Number of Spas Revenues Spa Employment
(US$ 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 capita 8 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.
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
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.
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

Estimated Total Estimated Total Spa
Number of Spas Revenues (US$ millions)
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

Estimated Total Estimated Total Spa
Number of Spas Revenues (US$ millions)
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
middleincome 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.
Spa Industry Profile: Africa
 Africa has a very small spa market, and the industry is concentrated in a handful
of wealthier countries and upscale tourism destinations (e.g., South Africa,
Namibia, Botswana, Kenya, and Seychelles). The number of spas is estimated at
389, with $276 million in revenues and 7,273 employees in 2007.

 Like in the Middle East, the African spa industry is dominated by high-end
hotel/resort spas and a small number of destination spas and health resorts that
cater to wealthy foreign tourists. Together, these account for over 78% of the
region‟s spa industry revenues. The only country with a significant local
day/club/salon spa market is South Africa.
Spa Facilities in Africa, 2007
Estimated Total
Spa Revenues
(US$ millions)
Day/Club/Salon Spas 199 $57.8 2,891
Hotel/Resort Spas 178 $180.6 4,014
Destination Spas/Health Resorts 8 $35.5 333
Medical Spas 2 $2.0 25
Other Spas 2 $0.2 10
Total 389 $276.2 7,273
Africa’s Top Six Spa Markets, 2007

South Africa 284 $170.2
Seychelles 16 $36.4
Botswana 19 $14.5
Kenya 15 $13.1
Mauritius 12 $8.7
Namibia 12 $7.4
“Typical” African Spas

 The majority of African countries are very poor, and therefore the spa industry is
assumed to be negligible throughout most of the region. South Africa is the only
country in Africa with a sizeable spa industry. In 34 out of the 48 countries in this
region, the spa industry is estimated to be zero for the purposes of this study.
 There is also a small, but significant high-end niche tourism market in several
southern African countries and islands, which supports a small sector of upscale
hotel/resort spas, destination spas, and health resorts.
 A “typical” day/club/salon spa in Africa is estimated to have $75,000 to $300,000 in
revenues and 4 to 15 employees.
 Hotel/resort spas, which almost exclusively serve wealthy international tourists, are
estimated at $850,000 to $1.2 million, with 19 to 27 employees. There are a handful
of small destination spas and health resorts in South Africa, along with one very
upscale destination spa in Seychelles.
Country Coverage: The estimates presented here consider the following African countries: Angola, Benin,
Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros,
Congo
(Dem. Rep.), Congo (Rep.), Cote d'Ivoire, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia,
Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania,
Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome & Principe, Senegal, Seychelles,
Sierra Leone, Somalia, South Africa, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia, Zimbabwe.
2. Spa Capital Investments

In 2007, significant investments were made in the construction of new spas and the
expansion of existing facilities. Spa capital investments include expenditures on the
construction and finishing of spa facilities, initial outlays for spa equipment and
amenities, and expenditures for major upgrades and expansions of existing spas
facilities beyond regular upkeep and maintenance.
Global spa capital investments are estimated at $13 billion in 2007, which represents
27.7% of total spa industry revenues. Conversations with industry executives suggest
that this investment rate is likely to accelerate in 2008, as a large number of projects
are already in the works, especially in the emerging markets of Asia, the Middle East,
and parts of Latin America and Europe.
The estimated distribution of 2007 spa capital investments across the world‟s regions
is provided in the table below.
Global Spa Capital Investments by Region, 2007
Estimated Number Estimated Total

% of World
of Investment Capital Investments
Projects Total
(US$ billions)
Europe 1,827 $4.9 37.8%
Asia-Pacific 2,995 $3.6 28.0%
North America 1,114 $1.8 13.5%
Middle East-North Africa 313 $1.0 7.9%
Latin America-Caribbean 543 $1.6 12.3%
Africa 38 $0.1 0.5%
Total 6,830 $13.0 100.0%
As one of the world‟s fastest growing spa markets, Asia received the largest number
of spa investment projects and had an estimated $3.6 billion of capital investments in
2007. Europe, in a period of rapid expansion, received $4.9 billion of investments in
2007 (and had an average cost per project that was slightly higher than in
AsiaPacific). North America, which has a well developed spa market, received an
estimated $1.8 billion of capital investments in 2007. Middle East-North Africa has a
small spa market by comparison, but has been experiencing very high rates of
investment – primarily in the Gulf countries – estimated at $1.0 billion in 2007. The
Latin America-Caribbean spa market is also more modest in size but growing rapidly,
receiving an estimated $1.6 billion of capital investments in 2007.
3. Spa Education
The spa education sector comprises two main components: spa therapist education
and spa management education. Together, these sectors accounted for over $311
million of revenues throughout the global economy in 2007.
Global Spa Education Expenditures, 2007
Estimated Spa Education-Related Expenses (US$
millions)
Spa therapist education $309.4
Spa management education $2.0
Total $311.4
Spa therapist education includes spending by individuals who are seeking training
and professional qualifications in order to enter or advance in the spa industry. 9 For
example, individuals in North America and Western European countries may pay
$5,000 to $10,000 for coursework that allows them to obtain the initial certification
necessary to enter the spa industry as a therapist. In addition, in a number of countries
spa therapists are required to take continuing education in order to renew their
certification. In 2007, individuals around the world spent an estimated $309.4 million
on spa therapist education.
The bulk of spa therapist Spa Therapist
education
Education Expenditure by Region, 2007
North America
expenditures are in Europe and North ($143.1), 46.3%
America, where workforce requirements Europe

for entering the industry are much higher ($118.2), 38.2%
than in the developing world. In high Asia-Pacific

($39.1), 12.6%
income markets, spa therapists will Latin America-
typically pay for their own initial Carib. ($7.3),
2.4%
education or credentials. Expenditures on Middle East-N.
continuing education are more likely to be Africa
($1.4), 0.5%
(US$ millions)
split between the employee and employer.
Africa
In the United States, for example, ($0.3), 0.1%
9 Estimates for spa therapist education do not include the training provided and paid for by spa-related
employers and spa products companies, because these expenditures are already captured in the core industry
cluster revenues and their resulting multiplier impacts.
continuing education for estheticians – who are in especially rare supply – is frequently paid
for by employers or product producers. Massage therapists, on the other hand, are more
likely to be self-employed and are more likely to pay for their own continuing education. In
Europe, it is estimated that the cost of continuing education for spa therapists is roughly split
between the employee and employer. In emerging markets, the bulk of training is likely to be
provided by employers, with most training taking place in high-end destination spas and
urban or resort hotels.
Spa management education is a small but critical part of the spa economy. Spa
management education courses are provided by a small number of hospitality
management programs worldwide, typically as an elective course within a broader
curriculum to qualify for a professional degree in tourism/hospitality management or
a similar field. Spa management education is also commonly offered as short training
courses or online courses through associations, private companies, or nonprofits.
Expenditures on spa management education are estimated at $2.0 million globally in
2007.
4. Spa Consulting
Spa consulting is a vital segment of the spa economy, providing services such as
conceptualization, design, and branding of new spas; spa management and training
solutions; and spa-related research and benchmarking. This industry segment consists
of many small companies led by specialized professionals who have high-level
executive experience in the spa industry, as well a number of small units operating
within larger travel, research, consulting, and management companies around the
world. The size of the spa consulting sector is estimated at approximately $68.0
million in 2007.
Global Spa Consulting Revenues, 2007
Spa Consulting Total $68.0 million
5. Spa Media, Associations, And Events
Spa-related media, associations, and events are combined as one segment for this
study because these activities are frequently conducted by businesses and
organizations who are engaged in more than one type of activity in the promotion of
the spa industry; therefore, their revenues often come from a combination of these
sources. For example, many companies that organize spa and related industry trade
shows and events often publish magazines and operate websites that promote the
industry. Similarly, many spa and related industry associations publish magazines as
well organize events and trade shows. The combined size of the global spa media,
associations, and events sector is estimated at $133.1 million in 2007.

Global Spa Media, Associations, and Events Revenues, 2007

Spa Media, Associations, and Events Total $133.1 million
6. Spa-Branded Products
Spa facilities derive a considerable portion of their revenues from sales of products,
including specialty and therapeutic skin and body care products, prestige cosmetics,
and much more. In European and U.S. spas, for example, product sales may represent
as much as 10%, 20%, or even 30% of total annual revenues. In fact, spas are
becoming an increasingly lucrative and important retail channel for many of the
world‟s top cosmetics and beauty products companies. While at one time department
stores represented the primary “prestige” sales outlet for cosmetics and skin care
products, a growing share of these sales are now occurring through spas, salons,
doctor‟s offices, and other specialty outlets. For the Estee Lauder company, for
example, 11% of product sales in 2006 occurred through salons, spas, and similar
kinds of specialty outlets. On the other hand, department store channels in North
America fell from 46% of sales in 2002 to 37% of sales in 2006.10
Outside of spas themselves, there is a growing trend of branding a wide variety of

products as “spa products,” as marketers try to appeal to the increasing consumer
segment that is interested in a health- and wellness-driven lifestyle. Spa-branded
products are appearing on the shelves at all ends of the spectrum – from mass market
outlets to department stores and specialty/prestige outlets. Therapeutic skin and body
care products, cosmeceuticals, microdermabrasion products, anti-aging products, and
so on are all being marketed to consumers as a way to enjoy spa-style pampering at
home.
The spa-branding trend is not limited to skin care and body care products. Other
product categories capitalizing on this trend include aromatherapy products and
candles; personal massage devices; bathrobes and bath linens; loungewear, leisure,
and fitness clothing; and much more. In the United States, even the home construction
and renovation market is benefiting from the spa-branding trend. An increasing
number of high-end home bathroom renovation projects are aimed at creating a
spalike atmosphere within individuals‟ homes.
Given the relatively new and amorphous nature of spa-branded products, there is
currently no global data available to measure the size or growth rate for this market.
Even measuring the spa-branded portion of the skin care and body care products
market is a challenge, because there is no existing data source that segments the
market in this way. Just as an example of potential market size, the U.S.
cosmeceuticals market (which could be considered to be solidly part of the
10 Packaged Facts, Skincare Products in the U.S., December 2006.

spabranded products trend) is projected to be $14.4 billion in 2007, with an annual

growth rate of around 5%.11 The global cosmeceuticals market is estimated as large as
$55 billion.12
Due to the lack of global data, this study does not attempt to quantify the size of the
spa-branded products market – but the size of the sector worldwide can be assumed to
be significant.13
B. Spa-Enabled Industries
1. Spa-Related Hospitality And Tourism

Health and wellness tourism, which includes visits to spas, is a relatively new but
rapidly growing travel niche, with demand growing at 10%, 20%, and even 30%
annually in some countries around the world. An increasing number of tourists are
taking “spa vacations” specifically aimed at rest and relaxation, pampering, and stress
reduction. Many more travelers now enjoy spa treatments as a complement to other
travel activities, such as visiting friends and family; business trips; and recreation,
culture, or shopping-oriented trips.
SRI estimates that 142 million international and domestic “spa trips” were taken in
2007.14 Approximately 88% of these trips were taken domestically, or within
travelers‟ home countries, and 12% of trips were taken internationally. “Spa trips”
represent an estimated 2% of total international and domestic trips taken around the
world in 2007.
Spa Tourism, 2007
11 Packaged Facts, Market Trends: The U.S. Cosmeceuticals Market, January 2005. Cosmeceuticals are skin
care, makeup, and hair care products that are positioned as not only enhancing appearance, but also having
therapeutic or preventive benefits.
12 Strategic Research Institute, 5th Annual Cosmeceuticals Conference Overview, www.almevents.com/
conf_page.cfm?instance_id=29&web_id=1082&pid=692.
13 The portion of the spa-branded products market that covers personal care and cosmetics/toiletries items is
part of the broader global beauty and beauty products market, which is included in this study as an “associated
spa lifestyle industry.” This industry is discussed and quantified in section III.C. of this report.
14 For the purposes of this study, a “spa trip” is defined as a trip of at least one night‟s duration, either within or
outside of a person‟s country of residence, in which the person‟s motivation for the trip includes the enjoyment
of spa services or treatments.
Estimated Number of "Spa Trips," 2007 Estimated Spa Travel Expenditures, 2007
# of
International
Spa Trips
(17,661,283) International
12.4% Spa Travel
Expenditures
($39.8) 37.5%
Domestic Spa
Travel
Expenditures
# of Domestic
($66.2) 62.5%
Spa Trips
(124,247,825)
87.6%
(US$ billions )
Total spa-related travel expenditures were an estimated $106.0 billion in 2007. 15

Because international travelers typically spend more per trip, international spa travel
expenditures represent a larger share of spending (38%) as compared to their share of
the number of spa trips (12%). Domestic spa travel expenditures represent 62% of
overall spa travel spending and 88% of total spa trips. SRI estimates that average
spending per trip was $2,254 for an international spa traveler and $533 for a domestic
spa traveler.
Global Spa Tourism by Region, 2007
Estimated # of “Spa Trips” Estimated Spa Travel
(millions) Expenditures (US$ billions)
Europe 47.9 $48.4
International 7.4 $15.1
Domestic 40.5 $33.3
Asia-Pacific 53.3 $26.9
Domestic 50.5 $19.8
North America 25.4 $17.2
Domestic 24.0 $11.4
Middle East-North Africa 1.5 $2.3
Domestic 0.3 $0.2
Latin America-Caribbean 12.6 $10.3
Domestic 8.1 $1.5
15 Expenditures data includes spending by tourists on accommodations, food and beverage, transportation,
entertainment and shopping (including spa-related treatments and products), and other activities.
Africa 1.3 $1.0

Domestic 0.8 $0.2
Total 141.9 $106.0
Domestic 124.2 $66.2
Asia-Pacific is the world‟s largest spa travel region, with an estimated 53.3 million
“spa trips” in 2007, closely followed by Europe, with 47.9 million “spa trips.” Due to
differences in income levels, however, estimated spa travel spending was higher in
Europe ($48.4 billion) than in Asia-Pacific ($26.9 billion). Top international spa
travel destinations in these and other regions (in terms of number of trips) include:
Thailand and Indonesia in Asia-Pacific; Spain, Italy, France, Germany, UK, and
Austria in Europe; Mexico, Dominican Republic, and Puerto Rico in Latin America-
Caribbean; as well as the United States and Canada. In terms of domestic tourism,
major spa travel countries include: Japan, Taiwan, and South Korea in Asia-Pacific;
Germany, Italy, France, UK, Russia, and Finland in Europe; Mexico and Argentina in
Latin AmericaCaribbean; as well as the United States and Canada.
2. Spa-Related Real Estate

Incorporating the recreation, leisure, and wellness lifestyle concept into real estate
development is a growing global trend that is accelerating in high-income and
emerging economies alike. The spa-related real estate category attempts to capture the
economic impact of global real estate construction that is associated with the
spainspired lifestyle. While it is sometimes difficult to isolate the significance of spa
facilities within a lifestyle-driven real estate development that also includes golf and
other recreational amenities, there is strong consensus among developers that spa is
an integral component, and in some markets a key selling point, for buyers seeking a
leisure and wellness lifestyle package in their real estate purchasing decisions.
SRI estimates that global spa-related real estate investment totaled over $88 billion in
2007.16 This estimate is conservative, as it mainly captures construction activities
within commercial/mixed-use projects. There are also an increasing number of purely
residential construction projects around the world that incorporate spa facilities and
market the spa lifestyle as a key selling point. Because there is no global, comparable
data source for residential construction across countries, this report does not estimate
16 This estimate is extrapolated from global real estate investment data, the share of those investments made in
hospitality and mixed-used developments, and the estimated portion of those investments that incorporate a
sparelated lifestyle component. Total global real estate investment in hospitality and mixed-use projects is
estimated at $177 billion by Cushman & Wakefield.
the spa-related residential construction that is occurring outside of mixed-use and

hospitality-related developments.
Global Spa-Related Real Estate Investment, 2007
Spa-Related Real Estate Investment Total $88.3 billion
The real estate impact of the spa industry does not stop there. Since spa facilities
typically enhance the overall value of a development, there is a premium related to
spa-related real estate. This premium is defined as the additional amount that a buyer
is willing to pay for a home or property located within a spa lifestyle development, as
compared to an equivalent development that does not have a spa. Interviews with real
estate development executives put the range of the “spa premium” at 10% to 40%.
However, this premium is only “realized” as an economic impact when a sale or
resale of a property takes place. Because spa lifestyle real estate is a relatively new
concept, sales of these kinds of properties have only started to reach a significant
level in recent years, and there is no global data for these transactions. For this reason,
the “spa lifestyle premium” has not been calculated for this report.
C. Associated Spa Lifestyle Industries

The rapid growth of the spa sector in recent years is closely linked with a broader
trend of increasing emphasis on health and wellness, or the enhancement of mind,
body, and spirit. The health and wellness trend is driving development and re-labeling
of many new products and services across a wide variety of consumer markets – such
as food and beverages, clothing, housewares, personal care, mind-body fitness,
selfhelp products and services, etc.
The concept of health and wellness is amorphous and continues to evolve as it works
its way more deeply into popular nomenclature. According to the U.S. National
Wellness Institute (NWI), wellness is defined as “an active process through which
people become aware of, and make choices towards, a more successful existence.” 17
NWI presents six dimensions of wellness, which together encompass a wide variety
of human activities and endeavors:
 Social: Contributing to one‟s environment and community; building better living

spaces and social networks.
 Occupational: Enriching one‟s life and achieving personal satisfaction through

work; the interconnectedness of work to living and playing.
17 National Wellness Institute, Defining Wellness, www.nationalwellness.org/index.php?id=390&id_tier=81.

The National Wellness Institute was launched in 1977 to serve professionals and organizations that promote
optimal health and wellness in individuals and communities across the United States and internationally.
 Spiritual: Developing belief systems and values; creating a world view.
 Physical: Benefiting from regular physical activity, healthy eating habits, strength
and vitality, personal responsibility, self-care, etc.
 Emotional: Developing awareness and acceptance of one's feelings; self-esteem,

self-control, and determination as a sense of direction.
 Intellectual: Pursuing creative and stimulating mental activities; sharing one‟s

gifts with others.18
Looking at the health and wellness concept through this lens, any attempt to define
and measure health and wellness in terms of an “industry” is challenging and could
easily encompass a very broad cross-section of sectors, products, and services.
The global health and wellness trend is also being captured and measured through the
concept of LOHAS, an acronym for “Lifestyles of Health and Sustainability.” The
LOHAS concept captures the segment of the consumer market that is focused on
“health and fitness, the environment, personal development, sustainable living, and
social justice.” In the United States alone, this market is estimated at $209 billion,
covering about 19% of U.S. adult consumers. Market segments counted in this
estimate include: personal health products and services, natural lifestyle products and
services, green building, alternative energy, alternative transportation, and
ecotourism.19
The spa industry sits solidly at the center of the global health and wellness trend. It is
both a driver and beneficiary of this evolving concept. In order to capture the
important synergies between the spa industry and other health and wellness-related
industries, this study has identified four industries as “spa lifestyle associated
industries:”
 Beauty and beauty products industry: Beauty, hair, and nail care services;
cosmetics, toiletries, and other beauty and personal care products and appliances.
 Fitness and fitness products industry: Health clubs and fitness services; fitness
and exercise clothing; fitness and exercise equipment; mind/body fitness services
and products (e.g., yoga, Pilates, etc.).
 Beauty and wellness medicine industry: Cosmetic and plastic surgery (surgical
and non-surgical procedures); prescription skin care pharmaceuticals; weight loss
18 Ibid.
19 LOHAS Online, About LOHAS: A History of the Sustainable Marketplace, www.lohas.com/about.html.
and weight control services, pharmaceuticals, and related products; and medical
tourism.
 Healthy foods and nutrition industry: Organic foods; functional foods; vitamins
and dietary supplements.
These four industries were selected based on their interconnectedness with the spa
industry. The products and services represented by each of these sectors are, to a
certain extent, linked with or marketed and sold through spa facilities, but also
represent much broader industries that reach far beyond the spa sector. A wide variety
of “spa-branded” cosmetics, beauty products, foods, and nutritional items are sold at
spas for example, but these sectors also encompass a vast global market for natural,
organic, therapeutic, and healthy foods and personal care products that are sold
through many different channels. Many health and fitness clubs are gradually
incorporating spas into their facilities, but there is also a broader, rapidly growing
global industry for exercise, fitness, and mind-body wellness activities (such as yoga
and Pilates). Similarly, an increasing number of medical spas are offering cosmetic
and dermatological procedures, nutritional counseling, weight loss services, and other
medically-based wellness services alongside traditional spa services, but this
represents only a fraction of the global beauty and wellness medical market.
SRI estimates that the four “spa lifestyle associated industries” represented a global
market of $1.1 trillion in 2007.
Global Spa Lifestyle Associated Industries, 2007
Global Market Size (US$ 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
D. Economic Impact Of The Spa Industry
The spa industry‟s impact on the global economy includes both the direct effects of
the core sectors, as well as their indirect and induced (or multiplier) effects on the
overall economy. In economics, the idea of the multiplier is that changes in the level
of economic activity in one industry have a “ripple effect” that results in an impact on
many other industries throughout the economy. For example, a portion of each dollar
spent at a spa is then spent by the spa owner to purchase goods and services for the
spa facility. The producers of these goods and services must, in turn, increase
production – these are indirect effects. In addition, spa employees spend much of
their incomes purchasing goods and services, and this requires companies in a myriad
of other industries to hire employees and increase output to meet this demand – these
are induced effects.
Therefore, the spa industry‟s total economic impact includes both the employment
and revenues of spa-related businesses, as well as the employment and revenues
generated in other sectors of the economy through subsequent purchases of goods and
services by spa-related businesses and employees. Additional economic impacts are
generated through the spa industry‟s influence on “enabled” industries, such as
tourism and real estate.
Overall, in 2007, the $60.3 billion core spa industry generated a total economic
impact of $374 billion for the world economy, including the direct, indirect, and
induced economic impacts of core spa industry activities as well as the impacts of
spa-enabled industries.
Economic Impacts of the Global Spa Industry, 2007
Spa Industry
Spa Industry Indirect &
Economy-Wide
Direct Impact Induced
Impact
(US$ billions) Impacts
(US$ billions)
Spa Facility Operations $46.81 
Spa Capital Investments $12.99 
Spa Education $0.31 
Spa Consulting $0.07 
Spa Media, Associations, &  $373.97
$0.13
Events
Enabled Spa Industries $194.35
Spa-Related Hospitality &
$106.05 
Tourism
Spa-Related Real Estate $88.3 
Note: Some of the industry segments included in the direct spa economy calculations are excluded from the multiplier
analysis, because they do not represent new economic activity or their inclusion would result in double-counting. For
more details on the economic impact estimation methodology, see section V.
IV. How To Use The Findings To Move The Spa Industry

Forward
How can stakeholders make use of this study to move the spa industry forward?

Advocating To Policymakers
When viewed through the industry cluster framework, the spa sector is a large and
significant global industry. The size and impact of the spa industry need to be
communicated clearly and strongly to government leaders so that:
 Appropriate investments in human resources can be made to ensure that adequate

and qualified workers are in the pipeline to fill jobs in a rapidly growing,
labordependent industry.
 Policy/regulatory changes that affect the sector can be made to enable proper
classification of establishments for consumer protection, but not to hinder industry
growth.
 Public sector resources can be leveraged on behalf of the industry. Strategic

economic sectors often receive government attention and resources for research,
data collection, and investment promotion. Communicating and publicizing the
size of the global spa industry and its economic impacts will encourage national
governments to take the spa industry seriously, to treat it as a strategic economic
sector, and to make appropriate investments to support industry growth.
Joining Industry Stakeholders Together

An industry is stronger, and its voice louder, when it is bigger and more inclusive.
 Bringing establishments that have evolved from distinctive cultural and historical
wellness and healing contexts under the spa umbrella will attract more
stakeholders and champions into the industry, thereby enriching and strengthening
the industry and what it offers to consumers.
 It is evident from the size of the four “spa lifestyle associated industries” that the
spa industry is well-positioned at the nexus of booming lifestyle and wellness
trends. The spa industry and its associated industries share consumers who have
similar characteristics, preferences, and outlooks. Linking the spa industry with its
associated industries can help to cross-promote a broader wellness consciousness
and lifestyle and will ultimately increase consumer awareness of spas.
Reaching Out To Consumers

A decidedly inclusive approach to defining “spa” best captures the potential of the
industry as it is viewed by current and future spa consumers.

 Consumers around the world make different associations with the term “spa.”
Allowing for an interpretation of “spa” through the lens of local cultures and
traditions enables establishments to evolve and move under the spa industry
umbrella, as they make investments and adapt to the needs and desires of the
modern consumer.
 A more “democratic” and less “elitist” approach to labeling what is and what is
not a spa will help appeal to a broader market. Today‟s value-conscious salon spa
or mobile spa customer may become tomorrow‟s customer of a high-end
destination spa.
Informing Investors
As a sector that is just beginning to take off on a global scale, the spa industry
presents investors with exciting and lucrative investment opportunities.
 This study provides a comprehensive and global view of the spa industry‟s size,
scale, potential, and opportunities for current and prospective investors.
 Adopting a flexible and culturally-inclusive view of “spa” enhances and enriches

investment opportunities by highlighting opportunities for diversifying into
emerging economies and niche markets within the spa industry.
Attracting Qualified Professionals To The Industry

Although human resources were not a focus in this study, a constant theme that
emerged in the research is the continued shortage of qualified professionals to meet
the demand of the rapidly growing spa industry. This labor shortage applies both to
spa therapists and spa management professionals.
 The size and potential of the spa economy should be emphasized to the potential
workforce and education establishments, conveying the message that the spa
industry is a growing sector with career mobility that is worthwhile of individual
and institutional investments in education, training, and certification.
 The career prospects in this large and growing industry need to be communicated
to the current and future crop of spa management professionals in order to attract
more talent to the industry. This research can help to support dialogue between the
spa industry and higher education institutions active in the fields of hospitality
and business administration, in order to develop specialized technical and
management curricula that will produce strong professionals for the spa industry.

V. Spa Economy Research And Estimation Methodology
A. Data Collection
Unique challenges for spa industry data collection
Collecting spa data and quantifying the global spa industry pose several unique
challenges:
 For most industry studies, reliable and comparable regional data is typically only
available from public sector sources. In the United States and globally, industry
data is collected by various government agencies (i.e., UNIDO, Eurostat, U.S.
Census Bureau, U.S. Bureau of Labor Statistics, etc.) according to standardized
industry coding systems, which include NAICS in the United States, NACE in
Europe,
ISIC worldwide, as well as hundreds of other country-specific classification
systems. While these industry classification systems do a good job of measuring
“traditional” industry activities, they are not set up to measure new and/or
evolving service, knowledge-based, and high-tech industries, such as spas,
tourism, information technology, biotechnology, environmental technology, etc.
For example, in the North American Industry Classification System (NAICS), spa
businesses might be classified under any of the following codes:
• For Day/Club/Salon Spas: 81211 – Hair, Nail, and Skin Care Services; 81219
– Other Personal Care Services; or 71394 – Fitness and Recreational Sports
Centers
• For Hotel/Resort and Destination Spas: 7211 – Traveler Accommodation
• For Medical Spas: 62111 – Offices of Physicians
The lack of a consistent industry code to classify spas, and to separate them from
other related beauty, fitness, tourism, and medical industries, means that standard
public sector industry data sources are of limited use when conducting research of
this nature.
 A wide variety of spa industry studies have been conducted at the country and
regional levels by government agencies, industry associations, and private
research and consulting firms – including ISPA, Intelligent Spas, Diagonal
Reports, and Euromonitor, to name just a few. These studies provide the only
reliable source of data currently available for the global spa industry. However,
the lack of a commonly-accepted industry definition of what is a “spa” means that

each study defines the sector differently. Therefore, the data available in these
studies is not comparable across countries and can only be used as a guide when
conducting global-level analysis.
 A number of spa research and consulting firms conduct spa benchmarking studies,
which are typically targeted at investors and industry insiders for the purposes of
investment planning, feasibility analysis, and forecasting. For the purposes of
global research, these studies present the same definitional issues described above.
In addition, they often focus on specific portions of the spa sector – i.e., large
resort/hotel spas or large day spa chains. Given that the global spa industry also
has thousands of small, privately and locally-owned establishments, such
benchmarking data cannot be assumed to be representative of spas in every
country around the world and can only be used as a guide for this kind of study.
Conducting a true global industry census is a truly momentous endeavor, which is

why few, if any, such studies have ever been conducted at the global level. At best, all
most industry analysts can do is collect data from government and private sources in
each individual country and make adjustments to ensure comparability. This
methodology is used by international organizations (such as UNIDO or Eurostat)
when compiling country-based industry data. However, given the limitations
described above, even this approach is not feasible for the spa industry.
Data collection methodologies used for this study

The SRI research team pursued a number of data collection methods, as described
below, in order to compile the most comprehensive spa industry data and research
available within the scope and time frame of this project. Together, these data streams
are used to make the most informed and accurate spa industry estimations that are
possible on a country-by-country basis.
 Primary survey data. Primary data was collected through a global survey of spas
and spa-related businesses. The Internet-administered survey collected
information on revenues, employment, and capital investments from
approximately 1,000 businesses around the world. It should be noted that while
this survey had a large number of responses, it was not intended to be a global
census. The survey provided valuable data on the typical size, revenues, and
characteristics of different types of spa businesses in countries around the world;
this information was a key input for the spa economy estimation model.
 Primary Internet-based data. The research team conducted exhaustive

Internetbased research to collect primary data on several specific types of spas,

including hotel/resort spas, destination spas, and cruise ship spas. This research
included the following: compiling the number and locations of hotel/resort spas
for over 50 major international/regional hotel brands around the world; visiting
the websites of over 600 destination spas, health resorts, ayurvedic resorts,
thalassotherapy resorts, and medical resorts worldwide (to count, verify, and
assess size); verifying hotel/resort spa data for small, high-tourism countries
through tourism and hotel directory websites; and compiling cruise ship spa data
through the websites of 30 major international cruise lines and the annual reports
of key hospitality and spa management companies.
 Secondary reports and data. Existing regional and country-level data and
information were collected through a wide variety of secondary resources,
including spa industry research studies done by private companies, industry
associations, and government agencies.
 Executive interviews. More than 50 hours of interviews were conducted with

industry executives who represent all the core spa-related sectors (spas, education,
media, consulting, etc.). The interviews focused on variations across spa markets
in different countries and regions, including the nuances in consumer perception
of what constitutes a spa; the structure and characteristics of the spa market; and
the distribution of spas across different business models, revenues, and
employment sizes. The executives interviewed also provided specific feedback on
country-level spa estimates for a large number of the countries that were included
in the study.
 Economic and demographic data. For every country included in the study, 10 to
15 economic and demographic indicators were collected to serve as parameters for
the spa estimation model. Indicators included: population, per capita income,
GDP, consumer spending patterns, and domestic and international tourism arrivals
and expenditures, among others. This data came from standard international
sources (e.g., World Bank, World Tourism Organization, Euromonitor, etc.).
B. Estimation Methodologies
The SRI team developed spa economy estimates using a tailored analytical model that
incorporates multidimensional inputs and factors. The model covers 210 countries in
all regions of the world. In general, specific data points for each country were
collected using the methods described above, and a rigorous estimation model was
then developed to account for a variety of parameters (such as country size, standard
of living, tourism characteristics, etc.). Qualitative inputs from executive interviews,

existing industry studies, and other relevant research were used to formulate and
verify estimates. Spa estimates were also benchmarked for scale against a variety of
related sectors at an international, regional, or country level, including health clubs,
beauty salons, beauty and cosmetic products, hotel/resorts, and tourism.
Spa Facilities
 Hotel/Resort Spas. To estimate the global number of hotel/resort spas, the SRI
team first counted the number of hotel/resort spas country-by-country for 50
brands and sub-brands of upscale hotel and resort chains, as well as selected spa
chains with an established presence in hotels. As another benchmark, the team
compiled the total number of luxury hotels by country using a variety of online
search engines, which served as an additional baseline and cross-check for luxury
hotel/resort spa estimates. For countries with poor coverage using these two
methodologies, SRI further supplemented the estimates by online queries using
search engines to find hotels and resorts with spas within specific countries, and
by visiting tourism and hotel directory websites for a large number of high-
tourism countries. In order to include locally and regionally based hotel/resort
spas not captured through the above channels, SRI then extrapolated the country
totals to account for the entire market of hotel/resort spas and made country-by-
country adjustments based on tourism market characteristics (e.g., whether
tourism is dominated by mass tourism, niche tourism, luxury/exclusive clientele;
whether there is a large degree of domestic tourism; etc.). Hotel/resort spa
revenues and employment were estimated country-by-country, based on regional
and country industry averages gathered through survey data, secondary sources,
and executive interviews.
The specific hotel/resort and spa chains covered through this research include the
following:
Accor (including Sofitel), Aman Resorts, A-Rosa Resorts, Banyan Tree Hotels &
Resorts (including Angsana Resorts), Canyon Ranch, Capella Hotels & Resorts,
COMO Hotels & Resorts, Danubius Hotels, Dreams Resorts & Spas, Excellence
Group Resorts, Fairmont Raffles Hotels International (including Fairmont,
Raffles, and Swissotels), Four Seasons Hotels & Resorts, Hilton (including
Conrad Hotels & Resorts and The Waldorf Astoria Collection), Golden Door,
Hyatt Regency Hotels (including Park Hyatt Hotels, Grand Hyatt Hotels, and
Hyatt Resorts), Intercontinental Hotels & Resorts, Isrotel Hotels, Jumeirah Hotels
& Resorts, Karisma Hotels & Resorts, Kempinski Hotels, Kimpton Hotels,
Mandara Spas, Mandarin Oriental, Marriott Hotels & Resorts (including JW
Marriott Hotels & Resorts, Renaissance Hotels & Resorts, The Ritz-Carlton Hotel
Company, and Bulgari Hotels & Resorts), Movenpick Hotels & Resorts, Oberoi
Hotels & Resorts, Occidental Hotels & Resorts, Omni Hotels, Orient-Express
Hotels, Palace Resorts, The Peninsula Hotels, Pueblo Bonito Resorts & Spas,
Rezidor Group (including Radisson SAS and
Regent), Shangri-La Hotels and Resorts (CHI spas), Six Senses Resorts and Spas, Sonesta
Collection, and Starwood Hotels & Resorts (including Le Meridien, W Hotels, Westin,
Sheraton, St. Regis Hotels & Resorts, and The Luxury Collection).
 Destination Spas and Health Resorts. Country-by-country data on destination

spas and health resorts was initially gathered through a global database provided
by SpaFinder and through data gathered from secondary reports. The SRI research
team then verified and expanded this database by visiting the websites of over 600
destination spas, health resorts, thalassotherapy resorts, medical resorts, and other
related resorts worldwide. Additional data was collected through online
directories of luxury hotel/resorts and spas, through country-specific Internet
queries for over 50 countries, and through secondary reports for specific regions.
Destination spa and health resort revenues and employment were estimated
country-by-country, based on regional and country industry averages gathered
through survey data, secondary sources, and executive interviews, as well as
research team projections based on the size and average room rates for the
destination spas and health resorts counted in each country.
 Day/Club/Salon Spas; Medical Spas; “Other” Spas. The SRI team initially
collected all available country-level data on these types of spas through available
secondary sources and reports published by private firms, associations, and
government agencies, as well a through a U.S.-based database provided by
SpaFinder. This data was then compared on a country-by-country basis and
adjusted to account for definitional differences across different sources. For
countries where no data was available, the research team developed an estimation
methodology based on measuring each spa type on a per capita basis and making
adjustments for a number of different country parameters, including: standard of
living (purchasing power parity GDP per capita 20); the degree of urbanization;
income distribution; characteristics of the beauty, health, and wellness market;
and cultural/historical traditions related to beauty, bathing, saunas, etc. Spa
revenues and employment for each category were estimated country-by-country,
based on regional and country industry averages gathered through survey data,
secondary sources, and executive interviews.
20 Purchasing power parity GDP per capita is a GDP per capita figure that is 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.
 Cruise Ship Spas. Cruise ship spa data was collected primarily using the annual
report of Steiner Leisure, which operates the spas on a large share of luxury cruise
ships worldwide, supplemented by research conducted through the websites of 30
major international cruise lines.
Spa Capital Investment
 To estimate hotel/resort and destination spa investments in 2007, SRI counted the
new hotel/resort openings and major hotel/resort renovations by country in 2007
and 2008 for the chains referenced above by perusing their annual reports, press
releases, and websites, as well as other online sources. The research team then
estimated the average investment expenditures per hotel/resort spa by chain, and
applied these figures to the number of hotel/resort openings in 2007 and 2008.
Adjustments were made according to SRI estimates of the proportion of hotels
that would have spas by hotel/resort chain, as well as an estimated proportion of
spending that would have been incurred in 2007. However, investments made by
the large global brands represent only one segment of hotel/resort capital
investment. In order to capture expenditures made by national, local, and
independent spas, SRI extrapolated the estimated country totals based on
estimated growth rates of new spas for each region.
 Capital investments in other types of spas (day/club/salon spas, medical spas,

“other” spas, cruise ship spas) were estimated based on projected regional growth
rates and the projected regional number of new properties for each spa type in
2007. Total capital investment for each spa type in each region was then
calculated based on estimates of average per-spa size and per square foot
construction costs. Data for this analysis was collected through a combination of
primary survey data, secondary sources, country-specific and region-specific
research, and executive interviews.
Spa Education
 Spa Therapist Education. This category includes the education of spa therapists,
primarily massage therapists and estheticians. It covers two components: 1)
education expenses accrued by individuals who sought initial training or
credentials in 2007 in order to enter the spa industry; and 2) education expenses
accrued by individuals who sought continuing education in 2007 in order to
advance in their careers in the spa industry. The estimate only includes education
expenditures paid for by spa therapists themselves. It does not include the
extensive training provided and paid by employers and spa products companies,

because those expenditures are already captured in the core industry cluster
revenues and their resulting multiplier impacts.
Estimating global spa therapist education expenditures is complicated by a lack of

standardization for training, certification, and licensing in the spa industry, not
only across countries, but also within countries. While there are movements
underway to clarify and standardize, these initiatives cover only a fraction of the
world‟s spa service employees. The closest to a global standard is the certification
awarded by the Swiss-based Comité International d‟Esthétique et de
Cosmétologie (CIDESCO). Credentials from the British-based International
Therapy Examination Council (ITAC), as well as the Confederation of
International Beauty Therapy and Cosmetology (CIBTAC), are also recognized
internationally, especially in former British colonies. However, therapists holding
these credentials are only a small percentage of the total global spa workforce.
Within the United States, the National Certification Board for Therapeutic
Massage and Bodywork (NCBTMB) provides the most widely held national
certification, but a parallel national certification for estheticians is only recently
emerging.
To estimate the spa therapist education expenses accrued by individuals, SRI

examined the certification and licensing requirements and costs for massage
therapists and estheticians in different markets and regions of the world. SRI then
estimated the number of individuals seeking initial and continuing training in each
country market in 2007, based on the following parameters: the requirements for
training and certification prior to employment; estimates of the worker attrition
rate; estimates of the hiring rate for service workers in each country; and
estimates of the portion of continuing education expenditures that are paid for by
employers versus employees. The estimated number of individuals seeking
training in 2007 was then multiplied by the individually-paid costs for training,
certification, and continuing education, and summed across the regions, to arrive
at an estimate for global spa therapist education expenditures.
 Spa Management Education. This category includes professional education

courses provided to mid-level and upper-level spa managers, as well as persons
seeking to move into management positions within the industry. Spa management
education courses are provided by a small number of hospitality management
programs worldwide, typically as an elective course within a broader curriculum
to qualify for a professional degree in tourism/hospitality management or a related
field. More commonly, spa management education is offered through short
training courses or online courses by private companies, associations, and
nonprofits.
To estimate the size of spa management education expenditures in 2007, SRI

gathered survey and primary research data on spa management education courses
offered by various providers around the world. If a hospitality/tourism, business,
or other professional program offered at least one spa management course, the
research team apportioned a percentage of the program‟s estimated tuition
revenues to spa management education. The number of students estimated to take
these courses and the estimated costs of these courses were derived from survey
data. That figure was supplemented by estimates made by the research team for
the à la carte and short-term courses offered by associations, nonprofits, and
private training companies in order to arrive at an estimate of global spa
management education expenditures.
Spa Consulting
 Spa consulting. Spa consulting includes the following activities: conceptualization,

design, and branding of new spas; spa management and training solutions; spa
research and benchmarking; and other related services. This industry segment
consists of small companies led by highly specialized professionals who have
highlevel executive experience in the spa industry, as well as small units operating
within larger travel, research, consulting, and management companies around the
world. Global spa consulting revenues were estimated by extrapolating from more
than one hundred survey responses collected from spa consulting companies
through a global survey, supplemented by data collected through interviews with
executives in spa consulting firms.
Spa Media, Associations, & Events
 Media, associations, and events are combined into one spa segment for this study
because these activities are frequently conducted by businesses and organizations
that are engaged in more than one type of activity in the promotion of the spa
industry, and therefore, their revenues often come from a combination of these
sources. For example, many companies that organize spa and related industry
trade shows and events often publish magazines and run websites that promote the
industry. Similarly, many spa and related industry associations publish magazines
as well as organize events and trade shows. To estimate the size of this spa
industry segment, SRI conducted extensive research to compile a list of spa
industry associations, expos, trade shows, and magazines/media outlets
worldwide.
 For spa associations, the research team compiled a list of more than 60
associations that specialize in the spa industry around the world and then
estimated their combined revenues based on survey responses and published

information on membership and activities.
 For spa events, SRI compiled information on consumer and trade shows in the spa
industry, as well as major beauty shows that have a significant spa component – a
list that totaled more than 50 events/shows globally. SRI estimated revenues from
these events based on published information on the size of the shows, such as the
number of exhibitors and sponsors, the cost of exhibition space and participation,
and other related data points. For trade shows and events in which spa is a
component but not the primary focus of the event (e.g., beauty shows), SRI
apportioned only part of the estimated event revenues to the spa economy.
 For spa media, SRI compiled a list of 45 spa-related consumer and trade
publications, including the key magazines and directories for the spa industry
around the globe. The research team estimated subscription and advertising
revenues for these publications based on circulation characteristics, supplemented
by inputs from more than 30 media companies that participated in the global
survey conducted for this project. These estimates were then cross-checked and
benchmarked against industry-level estimates of overall magazine revenues and
their distribution across the fitness/spa, hospitality, and beauty sectors worldwide.
In addition, as with most industries, the Internet is a critical and rapidly growing
media and advertising channel for the spa industry. However, this is an emerging
and evolving channel that marketing and advertising executives are still struggling
to quantify and measure, with no source of national or international data available.
SRI estimates that Internet advertising adds 20% to overall print media advertising
revenues. Print and Internet advertising revenues were combined to reach an
overall spa media revenue estimate.
Spa-Related Hospitality & Tourism
 This category measures the portion of international and domestic tourist trips and
expenditures that can be considered “spa trips.” For the purposes of this study, a
“spa trip” is defined as a trip of at least one night‟s duration, either within or
outside of a person‟s country of residence, in which the person‟s motivation for
the trip includes the enjoyment of spa services or treatments.
 To calculate the number of “spa trips,” the SRI team collected data from the
World Tourism Organization (WTO) for: 1) international tourist arrivals by
country, and 2) domestic tourist trips by country.21 For countries where WTO
21 According to the WTO, international tourist arrivals is defined as the number of tourists who travel to a
country other than that in which they have their usual residence, but outside their usual environment, for a
statistics were not available, SRI made extrapolations based on the characteristics
of the country and its tourism market. Based on a small number of international
spa tourism studies, as well as various country-based surveys and statistics on
traveler motivations, the SRI team estimated the percentage of international and
domestic trips in each country that could be considered “spa trips.” These
percentages ranged from 0% to 20% for international trips and from 0% to 10%
for domestic trips. The number of “spa trips” was then calculated using the WTO
data on total international and domestic tourist trips.
 To calculate “spa trip” expenditures, the SRI team collected data from WTO and
other sources for: 1) international tourism receipts by country, and 2) domestic
tourism expenditures by country. This data encompasses expenditures by tourists
on accommodation, food and beverage, transportation, entertainment, shopping,
and other activities. For countries where these statistics were not available, SRI
made extrapolations based on the characteristics of the country and its tourism
market. The team then calculated the average expenditure per tourist per “spa trip”
for each country. Average expenditures per “spa trip” were multiplied by the total
number of “spa trips” in each country to calculate total spa tourism expenditures.
Spa-Related Real Estate
 Since spa-related real estate is not an investment category tracked by national or

global real estate markets, SRI gathered general data on the global commercial
real estate investment market; the regional distribution of investments made in
2007; and the distribution of investment activities in the categories of offices,
retail, industrial, hospitality, and mixed-used projects. The SRI team reviewed real
estate investment data from a variety of sources, including: CB Richard Ellis
Global Research; Cushman & Wakefield‟s International Atlas Summary 2008;
Cushman & Wakefield Knowledge Center; Ernst & Young‟s Real Estate Market
Outlook 2007 and 2008; Jones Lang LaSalle Global Research; KPMG‟s Trends
in Global Real Estate 2007; PricewaterhouseCoopers‟ Global Real Estate Now:
Insights, Observations and Research; and Reuters Real Estate.
The research team decided to use Cushman & Wakefield‟s International Atlas
Summary 2008 as the primary data source for this report because it provides the
most comprehensive and detailed data on the global distribution of investments
period of at least one night (but not exceeding 12 months) and whose main purpose in visiting is other than an
activity remunerated from within the country visited. Domestic tourist trips are defined as trips made by a
resident of a given country within his/her residential country, but outside of his/her usual environment, for a
duration of at least one night but less than 12 months, and whose main purpose is other than the exercise of a
remunerated activity in the place visited.
across regions and across different real estate investment categories. The
Cushman & Wakefield commercial real estate data is apportioned into four
categories: offices, retail, industrial, and “other.” Based on interviews with real
estate industry executives, SRI determined that spa-related real estate falls within
the “other” category, which is primarily made up of hospitality and mixed-used
projects. This is because spa-related real estate is typically developed within a
larger hotel/resort investment project that includes golf courses, club houses,
dining, recreation, and other amenities that enhance relaxation and lifestyle.
According to Cushman & Wakefield, total investment in hospitality and mixed-
used real estate projects is estimated at $176.7 billion globally in 2007 (or 19% of
total global commercial real estate development). Interviews with executives from
global hospitality and spa-related real estate companies revealed a wide range of
opinions, but a conservative estimate by SRI following these interviews is that
about 50% of hospitality and mixed-use investments have a spa lifestyle
component built into the real estate development concept. This amounts to $88.3
billion of global investment in spa-related real estate in 2007.
Spa Lifestyle Associated Industries
 “Spa lifestyle 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. The
following four industries have been identified for this report as “spa lifestyle
associated industries.” Each of these sectors has a component that is marketed and
sold through spa facilities, but they also encompass much broader global
industries in their own right, which are marketed and sold through a wide variety
of non-spa channels.
• Beauty and beauty products industry: Beauty, hair, and nail care services;
cosmetics, toiletries, and other beauty and personal care products and
appliances.
• Fitness and fitness products industry: Health clubs and fitness services;
fitness and exercise clothing; fitness and exercise equipment; mind/body
fitness services and products (e.g., yoga, Pilates, etc.).
• Beauty and wellness medicine industry: Cosmetic and plastic surgery
(surgical and non-surgical procedures); prescription skin care
pharmaceuticals; weight loss and weight control services, pharmaceuticals,
and related products; and medical tourism.

• Healthy foods and nutrition industry: Organic foods; functional foods;

vitamins and dietary supplements.
 To calculate the market size for each of the spa lifestyle associated industries, the
SRI team collected consumer spending and industry size data from a wide variety
of secondary reports and sources across the sub-components of each industry as
defined above. Key data sources included Euromonitor, Kalorama Information,
Global Industry Analysts Inc., IHRSA, ASAPS, and others. Where market data
was only available for selected countries and regions, or where the data did not
match the industry definitions outlined above, the SRI team made estimations and
adjustments using economic parameters such as country size, income levels,
regional market and cultural characteristics, etc. Market size data for each industry
sub-component was then summed to reach estimates for the market size of each
spa lifestyle associated industry.
Economic Impact Of The Spa Industry

The impact of spas on the global economy includes both the direct economic activity
generated by the spa sector itself (its core and enabled industries), as well as the
indirect and induced (or multiplier) impacts that occur as spas‟ direct impacts create
ripple effects in economies around the world.
 Direct Economic Impact. The direct economic impact of spas is simply the size
of the spa industry cluster in terms of revenues and employment. The “global spa
economy” can be calculated by adding together the size of each of the core and
enabled industries.
Direct Impact of the Global Spa Economy
+ Spa Facility Operations
Industries
Core
+ Spa Capital Investment

+ Spa Education
+ Spa Consulting
+ Spa Media, Associations, & Events
Industries
+ Spa-Related Hospitality & Tourism

Enabled
+ Spa-Related Real Estate
= Global Spa Economy

 Indirect/Induced Economic Impact (Multiplier Impact). The spa facilities and
sparelated companies that comprise the spa industry must, in turn, purchase goods
and services from other companies. These purchases are considered the “indirect”
impacts of the spa industry. Furthermore, the employees directly employed by the
spa industry will spend much of their income purchasing a wide variety of goods
and services, which increases demand and supports jobs in other sectors of the
economy. These impacts are considered “induced” impacts. Together, the indirect
and induced impacts make up the multiplier impact of the spa economy.
Multiplier values vary from region to region, and from industry to industry, based
on the unique characteristics of a region‟s economy. Industries with more
linkages to other industries within a region will have a greater multiplier effect on
final economic activity relative to the initial, direct effect. Conversely, economies
and industry sectors dependent on a large share of imported supply will have
smaller multiplier effects. Service-based industries that depend largely on locally-
supplied labor to generate revenues – like the spa industry – frequently have
higher multiplier impacts than capital-intensive industries that depend on
imported inputs.
A few countries use sophisticated input-output analysis models to calculate

multiplier values for many different industries; however, very few industry
multipliers are available to make comparable calculations across countries in all
regions of the world. The World Travel and Tourism Council (WTTC) has
developed a Tourism Satellite Accounting model, which calculates the direct and
“multiplier” impacts for the tourism industry in 176 different countries. 22 For this
study, the SRI team decided to use tourism industry multipliers, as derived from
WTTC data, to calculate the multiplier impact of the spa economy. Since tourism
encompasses sectors such as entertainment and leisure, accommodations, food
and beverage, and other related activities – activities that are similar to what the
spa industry encompasses – the tourism multipliers are the best possible proxy for
global multiplier values for the spa industry.
The SRI team utilized WTTC data to derive regional multipliers for industry
output (or revenues). These multipliers were then applied to the estimated values
for core spa industry revenues to calculate the global economic impact of the spa
industry. Some of the industry segments included in the direct spa economy
calculations were excluded from the multiplier analysis, because they do not
represent new economic activity or their inclusion would result in double-
counting. Multiplier analysis was calculated based on core spa facility revenues,
spa capital investment revenues, and spa education revenues. The following
industry segments were excluded from the multiplier analysis: (1) spa consulting,
and (2) spa media, associations, and events. Because activities in these sectors are
typically paid for through spa facility revenues, the economic impact of these
sectors was already captured in the multiplier impact calculated for spa facility
22 For more information on WTTC Tourism Satellite Accounting, see: www.wttc.travel/eng/Tourism_Research/

Tourism_Satellite_Accounting/.
revenues. The market size for the two enabled industries was added to the
multiplier impact for the core industry to reach a total economic impact estimate.
VI. References
American Society for Aesthestic Plastic Surgeons. Statistics 2007.
Association Research Centre Inc. 2006 Canadian Spa Sector Profile. Prepared for the
Canadian Tourism Commission. July 2006.
Association Research Centre Inc. Spa, Health, & Wellness Sector Foreign Competitor
Profiles. Prepared for the Canadian Tourism Commission. December 2006.
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.
CB Richard Ellis. Global Research. www.cbre.com/EN/Research/.
Cushman & Wakefield. International Investment Atlas Summary 2008. 2008.
Cushman & Wakefield. Knowledge Center. www.cushwake.com.
Datamonitor. Organic Food: Global Industry Guide. August 2007.
De Vierville, Jonathan Paul. “Spa Industry, Culture, and Evolution.” Massage and
Bodywork Magazine. August-September 2003.
Diagonal Reports. The European Spa Market 2007 (France, Germany Italy, Spain,
UK). 2007.
Ernst & Young. 2007 Real Estate Market Outlook. 2007.
Ernst & Young. 2008 Real Estate Market Outlook. 2008.
Ernst & Young. International Real Estate Library Online. www.ey.com/global/

content.nsf/International/Dynamic_Library.
Euromonitor International. World Consumer Spending 2007/2008. 2007.
European Spas Association. Statistics: Overnights and Guests in European Spas.

www.espa-ehv.com/en/statistik2007e.html.
Feedback Research Services. U.S. Skin Care Markets & Trends: Assessments and
Overviews 2005. February 2005.
Global Industry Analysts, Inc. Sports and Fitness Clothing: A Global Strategic
Business Report. November 2007.
Global Industry Analysts, Inc. Weight Control Products: A Global Strategic Business
Report. March 2008.
Golf 2020 and SRI International. The 2005 Golf Economy Report. 2008.
Hartman Group of Seattle. Identifying the Spa Traveler: A Look at U.S. and
Canadian Consumer Attitudes and Motivators for Spa Vacations. Prepared for the
Canadian Tourism Commission and International Spa Association. 2006.
IBISWorld. Weight Loss and Dietary Centers (NAICS 81219a): Executive Summary
Report. December 2007.
Intelligent Spas. Spa Industry Profile Australia, 2002-2007. 2006.
Intelligent Spas. Spa Industry Profile Benchmarks Asia Pacific: A comparison of Spa
Industry Profile Survey Results of Australia, Indonesia, Malaysia, Philippines,
Singapore and Taiwan. 2007.
Intelligent Spas. Spa Industry Survey Thailand 2004. 2005.
International Spa Association. 2007 Spa Industry Study. November 2007.
International Spa Association. ISPA 2006 Spa-Goer Study: U.S. and Canadian
Consumer Attitudes and Spa Use. September 2006.
International Spa Association. 2004 Spa Industry Study. September 2004.
IHRSA. The IHRSA Global Report: The State of the Health Club Industry. 2007.
JETRO. “Spas Offer Business Opportunities.” JETRO Japan Economic Report.

AugustSeptember 2006.
Jones Lang LaSalle. Global Research. www.research.joneslanglasalle.com.
Just-food. Global Market Review of Functional Foods – Forecasts to 2012. August

2006.
Kalorama Information. Obesity: The World Market for Pharmaceutical and Surgical
Treatment. June 2006.
Kalorama Information. The Market for Physical Fitness Equipment. November 1999.

KPMG. Trends in Global Real Estate 2007. 2007.
Lang Research Inc.. Travel Activities & Motivations Survey: Interest in Health Spas
Profile Report. December 2001.
Lang Research Inc.. U.S. Travel Market – Fine Dining and Spa Visits While On
Trips: A Profile Report. August 27, 2007.
Leisure Database Company. 2008 State of the UK Spa Industry Report. 2008.
MedSci Communications & Consulting Co. 2005 Canadian Spa Goers Survey.
Prepared for Leading Spas of Canada and Elmcrest College. February 2006.
Mitsui Knowledge Industry. A Look at the Japanese Spa Industry (draft report). May
2008.
Motion Picture Association of America. Theatrical Market Statistics 2007.
Ontario Ministry of Tourism. Travel Activities and Motivations of Canadian

Residents: An Overview. March 2007.
Ontario Ministry of Tourism. Travel Activities and Motivations of U.S. Residents: An

Overview. January 2007.
Packaged Facts. Market Trends: The U.S. Cosmeceuticals Market. January 2005.
Packaged Facts. Skincare Products in the U.S. December 2006.
Parker, Philip M. The 2007-2012 World Outlook for Commercial Sports. ICON
Group Ltd.: 2006.
PKF Consulting and PKF Hospitality Research. Trends in the Hotel Spa Industry.
2007.
PricewaterhouseCoopers. Global Real Estate Now: Insights, Observations and

Research. March 2007.
Reuters Real Estate. www.reutersrealestate.com.
Rotter, Christine. “National Tourist Office Campaign Bears Fruit.” Wellness Focus: A
Special Publication of the Budapest Sun. April 13-19, 2006.
Topaz Consulting Group. Spa Industry Survey Report for Great Britain and Ireland.
2006.

Tourism Victoria. Victoria’s Spa and Wellness Tourism Action Plan 2005-2010.
Tsymbal, Nina. Overview of the Current State of the Russian Spa Industry. May 2008.
U.S. Commercial Service. Japan: Spa Market for Cosmetics and Beauty Products.
December 2006.
World Bank. World Development Indicators Online. www.worldbank.org.
World Tourism Organization. UNWTO World Tourism Barometer. Vol. 5, No. 3.

October 2007.
World Tourism Organization. Yearbook of Tourism Statistics, 2007 Edition.
World Travel & Tourism Council. Tourism Satellite Accounting Regional Reports.
2008.
“Yoga Journal Releases 2008 „Yoga in America‟ Market Study.” Yoga Journal Press
Release. February 26, 2008.

VII. About the Research Team

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 than half of SRI‟s 1,500 staff members have advanced degrees and
professional expertise, including management consultants, economists, scientists,
engineers, psychologists, and other specialists. More information on SRI is available
at: www.sri.com.
The research team that carried out the Global Spa Economy 2007 study is drawn from
the Economics Program within SRI‟s Center for Science, Technology, and Economic
Development. Based in Washington, DC, the Economics Program provides top
quality research, analysis, and advice to private and public sector clients seeking to
make sound decisions and improve competitiveness in a changing policy and
economic environment.
Economics Program staff have conducted numerous economic impact studies at the
microeconomic (project), sector, macroeconomic, and international levels. A number
of these studies have focused on the economic impacts of tourism, golf, and other
industries, allowing these industries to position themselves more effectively to
policymakers, consumers, investors, and other stakeholders. Most of the analyses
required tailored economic models crafted specifically by SRI for clients. Economics
Program staff, all of whom hold advanced degrees in economics, business
administration, public policy, and related disciplines, are highly familiar with the
quality, breadth, and limitations of alternative data sources, as well as with
quantitative relationships and dynamics among different economic statistics and
industry variables.
Some of the sample projects completed by the Economics Program include:
The U.S. Golf Economy Reports and State-Level Golf Economy Reports. In 2002,
SRI was commissioned by Golf 20/20 and the World Golf Foundation to conduct a
groundbreaking study that estimated the “gross domestic product of golf.” This study
created a major public recognition of the size and contribution of the sport to the U.S.
economy. Subsequently, eight U.S. states commissioned SRI to conduct studies of the
economic impact of golf at the state level. SRI recently completed an updated U.S.
Golf Economy report, which was a centerpiece for the launch of National Golf Day on
April 16, 2008 at the U.S. Capitol by a large coalition of golf industry stakeholders.
Says Joe Steranka, CEO of PGA of America, "The stature of golf will grow as more
public and private officials in our nation's capital have a greater understanding of the

scale of our industry and the impact golf has on jobs, tourism, tax revenues and other
economic and environmental impacts at the local, state, and national levels."
Measuring the Concept of “Access” for FedEx. SRI was commissioned by FedEx
Corporation to articulate the concept of Access and measure its impact on people,
businesses, and nations across the world. As part of the research, SRI developed and
trademarked the Access Index with FedEx, created a measurement of different
dimensions of Access, and quantified its impact on key beneficiaries. The study
helped bolster FedEx‟s global thought leadership based on a future-looking paradigm.
SRI is currently working with FedEx to launch the updated Access Index 2008. More
information on this study can be found at: access.fedex.com.
Benchmarking Competitiveness for Knowledge-Based Industry Development in the

Gulf States. Recently, SRI was commissioned by the Gulf Organization for Industrial
Consulting to craft a regional roadmap for developing knowledge-based industries in
six Gulf States: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab
Emirates. To inform strategy development, SRI conducted a competitiveness
benchmarking among the Gulf States and across the world to highlight the key
advantages, disadvantages, and opportunities for investment and policy interventions
in each country. Intensive data collection and international benchmarking are
providing the solid groundwork needed by each state to develop its own tailored
roadmap for moving toward knowledge-driven economic growth.
Economic Impact Assessment of Resort Hotel Development in Curaçao. For the

Central Bank of the Netherlands Antilles, SRI utilized data-based projections and
modeling techniques to evaluate the macroeconomic impact and feasibility of two
proposed major resort developments on the island of Curaçao. SRI‟s analysis was a
key factor in the Central Bank‟s decision to provide special financial considerations
for launching the resort projects.
Economic Impacts and Benefits of a Biotechnology Park Development in Kobe,

Japan. On behalf of the City of Kobe, SRI collaborated with Bechtel Corporation to
create a biomedical cluster strategy and park development plan for Kobe. A major
component of this study was a detailed economic impact assessment of the project.
The significant economic impacts estimated for this investment were used as a focal
point to unite stakeholders – including city government, business leaders, a
consortium of Japanese universities, private and public-funded research facilities,
potential venture capital providers, the airport development authority, and the port
authority – to develop strategic investment attraction plans for the park.

In our experience, companies, industries, and government leaders have found that
quantifying what is considered difficult or impossible to measure, using rigorous
research modeling techniques, can prove to be a powerful tool for positioning,
branding, advocacy, and public recognition. We are very grateful for the opportunity
to work with the Global Spa Summit and many spa industry executives to jointly
make this small leap forward for the global spa community.
Contact information for the research team:

Economics Program
SRI International
1100 Wilson Blvd., Suite 2800
Arlington, VA 22209
United States
(703) 524-2053

How You Can Contribute To Global Spa Economy
Research
The Global Spa Economy 2007 study is a landmark first step in developing a framework
to quantify the global spa industry. It is a first attempt to provide a snapshot of the global
spa economy in 2007 for 210 countries. Given limited available data, an important lesson
that emerged from this exercise is the colossal need to collect and maintain information
for a global industry that has significant economic impacts.
It is our hope that, over time, the spa economy measurement framework will be refined
and strengthened, but we can only do so by joining together as an industry. Therefore, we
welcome and invite your inputs, contributions, and collaboration. In particular, we hope
that you will share intelligence about new industry research and data that emerge in the
regions, countries, and spa markets where you operate. This intelligence will be
invaluable for creating more robust analysis and measurement of the spa economy, where
little information exists right now.
If you would like to share any data, insights, or studies for the next Global Spa Economy
report, please contact the Global Spa Summit by email: research@globalspasummit.org
or through www.globalspasummit.org.
We thank you in advance for your contribution to ongoing Global Spa Economy research.
Sincerely,
Global Spa Summit Board

Spa Economy Report Final

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Spa Economy Report Final

Uploaded by

Copyright:

Available Formats

THE GLOBAL SPA ECONOMY

About SRI International

Copyright 2008 SRI International

Global Spa Summit

 To put forward a comprehensive framework to understand and quantify the scale

 To stimulate dialogue among all industry stakeholders regarding the definition,

Copyright Global Spa Summit 2008 1 SRI International

The Spa Industry Cluster

Spa Facility Operations

Beauty & Beauty

Core Industries Enabled Industries Associated Industries

Additionally, an estimated $88.3 billion in global real estate construction revenues

 Advocating to government leaders that the spa industry is an important and

 Joining industry stakeholders together to provide a stronger voice and more

 Reaching out to consumers by allowing for flexibility in the interpretation of

 Attracting qualified professionals to the spa industry.

Copyright Global Spa Summit 2008 3 SRI International

 To put forward a comprehensive framework to understand and quantify the scale

 To develop high-level, worldwide estimates that enable industry leaders, company

 To stimulate dialogue among all industry stakeholders regarding the definition,

What this study is

Copyright Global Spa Summit 2008 4 SRI International

Such an approach allows industries to organize resources, structure their

What this study is not

What we include as spas

What this study tells us

II. Analytical Framework

Copyright Global Spa Summit 2008 6 SRI International

A. Defining The Spa Economy

 Information technology is another industry that poses definitional challenges. For

etc.). The definition of the IT industry changes constantly, depending on the

Using water-based or not as a definition

Using size and services to identify spas for benchmarking

Using an exclusive versus democratic (or mass market) definition

Defining spas in the local, cultural, and historical context

Copyright Global Spa Summit 2008 9 SRI International

 Day/Club/Salon Spas. Facilities that offer a variety of spa services (e.g.,

 Destination Spas and Health Resorts. Offer a full-immersion spa experience in

wellness care in an environment that integrates spa services with traditional or

2. The Spa Industry Cluster

Copyright Global Spa Summit 2008 11 SRI International

The Spa Industry Cluster

Spa Facility Operations

Beauty & Beauty

Core Industries Enabled Industries Associated Industries

 Associated industries represent a selected set of industries that are interconnected

Copyright Global Spa Summit 2008 12 SRI International

B. Quantifying The Size Of The Spa Economy

 Within the traditional industry classification frameworks used by national

III. The 2007 Spa Economy

Copyright Global Spa Summit 2008 13 SRI International

Core Spa Industries $60.31

Copyright Global Spa Summit 2008 14 SRI International

The Spa Industry Cluster (US$ billions)

Spa Facility Operations

Core Industries Enabled Industries Associated Industries

A. Core Spa Industries

1. Spa Facility Operations

 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

Global Distribution of Spas,