2017 ISPA U.S. Spa Industry Study Executive Summary

ISPA EXECUTIVE SUMMARY 2017 U.S. Spa Industry Study This is a summary of the findings from the ISPA 2017 U.S. Spa Industry Study. The study was commissioned by the International SPA Association (ISPA) Foundation and undertaken by PricewaterhouseCoopers’ global centre of excellence for research. The study presents a picture of the spa industry in 2016. The industry in 2016: A steady pace of growth In 2016, the U.S. economy continued to grow at a modest pace. As measured by the Gross Domestic Product (GDP), the growth in the level of economic activity nationwide slowed to 1.6% in 2016, down from 2.6% in 2015. However, with the economy posting a seventh successive year of output expansion, the labor market continued to tighten, with a 1.8% expansion in the number in employment underpinning a further fall in the unemployment rate, which fell below 5% in 2016. In tandem with the national trend, the spa industry also experienced continued growth in 2016. Total spa revenues for 2016 are estimated at $16.8 billion, an increase of $0.5 billion on total revenue in 2015 ($16.3 billion). At 3.1%, the growth in spa revenues was slower in 2016 compared with 2015, when revenues grew by 5%. Nonetheless, the 2016 out-turn represented the seventh year in a row of positive growth in spa revenues, following the decline that resulted from the 2009 Great Recession. 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 $90.7 z$91.3 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 4.1% Contract 39,500 35,000 -11.4% The increase in spa revenues was driven by a rising number of spa visits (+2.5%) combined with further expansion in the number of spa locations (+1.1%) and a modest increase in average revenue per spa (+0.6%). The number of spa locations is estimated to have risen from 21,020 in 2015 to 21,260 by the end of 2016, a net increase of 240 new spa establishments. experienceispa.com | 1