Spa industry revenues rebound, but staffing remains a challenge in Canada

The U.S. spa industry has returned to revenue levels not seen since before the pandemic, according to an industry study
commissioned by the International Spa Association (ISPA). And that may be good news for Canadian spas, too.

“Canada tends to reflect what is happening in the U.S.,” explains Kathryn Gallagher, Leading Spas of Canada chair. The ISPA study included total revenue, total spa visits, spa locations, revenue per visit, and total number of spa industry employees. A concurrent consumer snapshot report captured the spending and spa-going habits of consumers, which show a strong
demand for spa services and an increased focus on personal wellbeing and at-home care.

In the U.S., revenues grew from $12.1 billion in 2020 to $18.1 billion in 2021, an increase of more than 49% and just below the industry’s all-time high of $19.1 billion in 2019. The number of spa visits grew from 124 million in 2020 to 173 million in 2021, while the total number of U.S. spas fell only slightly, from 21,560 to 21,510. A notable increase in revenue per spa visit—up from $97.5 in 2020 to $104.5 last year—played a crucial role in elevating industry revenues.

While the number of industry employees also rose in the U.S., Gallagher explains that, in Canada, staffing is still having a hard time keeping up with a heightened demand for services.

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