WHY WELLNESS?
Wellness is booming.
The general public is becoming increasingly aware of the importance of health and wellbeing – particularly since the pandemic – and demands wellness as a standard wherever they go. With greater market sophistication, hospitality companies need to understand this demand and act accordingly – or risk being left behind.
The global wellness economy grew by 12.1% between 2020 and 2022, and was worth $5.6 trillion in 2022, with a projected 8.6% CAGR in 2027.
Wellness tourism alone contributed $651 billion to this growing market. Wellness tourists present a very attractive target market as they tend to:
- spend more,
- stay longer (usually a minimum of three days, typically around seven days, and sometimes up to 21 days),
- be loyal (wellness resorts typically experience 30-50% repeat guests); and
- be less influenced by seasonality.
Populations around the world are also ageing rapidly, creating a new market where hospitality and real estate merge. Entire communities are built around a 360-degree concept of wellness, as older generations want to be part of multigenerational housing that is dedicated to living well.
And it is not just the older generation that wellness real estate is attractive too. Wellness real estate was worth $398 billion in 2022 and has been growing at an annual rate of 20.5% between 2020 and 2022. It is now at 177% of its pre-pandemic level and has been the fastest-growing sector in the wellness economy since 2019.
The wellness movement is not expected to slow any time soon; in fact, it is foreseen to accelerate and grow to influence more and more aspects of our daily lives.
Individuals are putting more time and money towards their health, expecting professional support in preventing common illnesses such as heart disease, cancer and diabetes in order to live a longer and happier life.
Whichever way you look at it, wellness is here to stay.
Find out more about how we can help you inject wellness into your project.
