2016 ISPA U.S. Spa Industry Study Executive Summary

This is a summary of the findings from the ISPA 2016 U.S. Spa Industry Study. The study was commissioned by the International SPA Association Foundation and undertaken by PricewaterhouseCoopers Research to Insight (r2i). The study presents a picture of the spa industry in 2015. The industry in 2015: Forging Ahead In 2015, the U.S. economy continued to expand. As measured by the Gross Domestic Product (GDP), the growth in the level of economic activity nationwide averaged 2.4% in 2015, unchanged from the 2014 growth rate (+2.4%). Personal consumption expenditure rose by 4.7% in cash terms and 2.8% after adjusting for inflation. Similar to the national trend, the spa industry also experienced continued growth in 2015. Total revenue is estimated to have increased by 5%, up from $15.5 billion in 2014 to $16.3 billion in 2015. The increase in spa revenues was driven by a rising number of spa visits (+2.1%) combined with increased revenue per visit (+2.9%) and expansion in the number of spa locations (+1.8%). 2014 (Year End) 2015 (Year End) % Change Revenue $15.5 billion $16.3 billion 5.0% Spa Visits 176 million 179 million 2.1% Locations 20,660 21,020 1.8% $88 $91 2.9% Revenue per visit 2015 (May) 2016 (May) % Change Total Employees 360,000 359,300 -0.2% Full-Time 153,800 162,000 5.3% Part-Time 164,500 157,800 -4.1% Contract 41,700 39,500 -5.3%