CTC UNVEILS CANADIAN SPA INDUSTRY SURVEY

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How large is Canada's spa industry? $1 billion. What is the fastest-growing type of spa? Resort and hotel. Where does the greatest untapped potential lie? Spa tourism.

Find the essentials on Canada's spa industry in the Canadian Tourism Commission's 2006 Canadian spa sector profile, the most comprehensive survey of its kind to date.

Complementing a Canada and US spa-traveller study, the recently released 82‑page survey assesses the industry in detail through growth, revenue, employment, tourism, regional differences, pitfalls and trends analyses.

"Essentially, this is a new benchmark for the spa health and wellness sector," said Frank Verschuren, CTC product specialist. "This information arms stakeholders with market and operational intelligence, allowing them to make informed business decisions."

The study identifies that the Canadian spa industry represents $1 billion in revenue annually, there are more than 2,300 spas in the country, and these establishments are concentrated mainly in Ontario, followed by BC, Quebec, Alberta and Atlantic Canada. Furthermore, the research finds one-third of spas are tourism-oriented, employ nearly 26,000 people, and that the sector has experienced an average 17% annual growth.

In terms of categories, day spas are the largest. Spa-goers made an estimated 14 million visits to Canadian spas in 2005 (a 20% growth rate from 2004 to 2005). The types of treatments sought most are massages, and female customers continue to dominate demand. The survey also finds more Canadians are buying into the spa experience, and spa consumers are more educated and value-oriented than ever.

The survey provides valuable insight on the nature and profile of spa establishments: together spas represent 8 million square feet of indoor space; one-third are resort/hotel spas; these developments amount to a 28% growth rate from 2004 to 2005. Treatment rooms take up 44% of spa indoor space. Revenues are generated in treatment rooms (53%), lodging (36%), beauty salon (35%), retail (18%), and restaurants (15%).

Like many others, the spa sector experiences staffing shortages. The sector also needs to work on its promotional efforts, and spa businesses face difficulty raising start-up funds, according to the study. The 2006 Canadian spa sector profile identifies that spa tourism has yet to come even close to its full potential in Canada; it is still a "best-kept secret".

Over the past 10 years, sector growth has been strong and stable, according to Pat Corbett, chair of the CTC's Spa, Health and Wellness Tourism Taskforce, and owner of the Hills Health Ranch in British Columbia. "We can be proud of what the spa industry has accomplished, and look forward to greater things in the future," Corbett says.

The CTC's partners on the study were Alberta Economic Development, Atlantic Canada Opportunities Agency, Economic Development Canada-Québec, Leading Spas of Canada, Ontario Ministry of Tourism, Premier Spas of Ontario, Spas Relais Santé, Tourism BC, Tourism Québec and Travel Manitoba. The study is available for free download at the CTC Web site: www.canadatourism