RESEARCH NORTH AMERICA
Strong and steady Total spa industry revenue in the US has reached an all-time high of US$16.8bn, according to the latest research from ISPA and PricewaterhouseCoopers. Research author Colin McIlheney outlines the findings
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t’s been another year of steady growth for the US spa industry, according to the International Spa Association (ISPA)’s 2017 US Spa Industry Study, which was carried out in collaboration with PricewaterhouseCoopers (PwC). The report is a nationwide overview of the spa industry and looks at data for 2016 through spring 2017. The findings are the result of a large-scale survey of
spa operators across the US. Criteria examined include financial performance, employment and growth, as well as the regional distribution of spas, ownership structures, number of visits, product and service offerings, compensation, and other topical areas of interest. With continued growth in the US economy in 2016 seeing overall GDP continuing to rise and unemployment
Table 1: The Big Five Statistics: Out-turn and percentage change in 2016 2015 (year end)
2016 (year end)
% change
Revenue
$16.3 billion
$16.8 billion
3.1%
Spa visits
179 million
184 million
2.5%
Locations
21,020
21,260
1.1%
Revenue per visit
US$91
US$91
0.6%
2016 (May)
2017 (May)
% change
Total employees
359,300
365,200
1.6%
Full-time
162,000
165,800
2.3%
Part-time
157,800
164,500
4.2%
Contract
39,500
35,000
-11.4%
*Calculations of percentage change are based on unrounded figures. Source: ISPA 2017 US Spa Industry Study
114 spa business HANDBOOK 2018 – 2019
falling further, this year’s estimates show that the spa industry grew in tandem with the wider economy. Revenues, visits, employment and locations all increased, marking further progress for the industry and representing a seventh year of positive growth following the decline that resulted from the Great Recession in 2008-2009.
The five key statistics In this year’s study, each of the ‘Big Five’ statistics increased on the previous year’s figures, underscoring the industry’s continued growth. Total spa industry revenue in the US is estimated to have reached US$16.8bn in 2016 – an all-time record figure. Growth in the overall US economy slowed slightly in 2016, with GDP growth falling from 2.6 per cent in 2015 to 1.6 per cent in 2016, and this trend was matched in the spa industry, with revenue growth slowing from 5 per cent in 2015 to 3.1 per cent in 2016. In addition to revenue, record-high figures for the industry were also recorded in relation to visits, locations and revenue per visit. With five million additional visits made to spas in 2016, www.spahandbook.com