The UAE is ideally positioned for both residents and tourists to access high end treatments and facilities, finds a new report by Knight Frank
Following the COVID-19 pandemic and the rise in non-communicable diseases, people are becoming more health-conscious. A much higher proportion of all populations are actively pursuing care through preventive medicine, fitness activities, nutritional counselling and other methods. The growth in population between the ages of 40-59 years and 60 years will create a greater need for medical wellness services to manage age-related health issues and maintain quality of life through rejuvenation treatment, spiritual healing, and other options.
The Global Wellness Institute defines wellness as ‘the active pursuit of activities, choices and lifestyles that lead to a state of holistic health’. There are 6 paradigms of wellness – spiritual, physical, occupational, emotional, intellectual and social – each contributing to an individual’s wellbeing:
• Spiritual – Expanding a sense of purpose and meaning in life
• Physical – Recognizing the need for physical activity, diet, sleep and nutrition
• Occupational – Personal satisfaction and enrichment derived from one’s work
• Emotional – Coping effectively with life and creating satisfying relationships
• Intellectual – Recognising creative abilities and finding ways to expand knowledge and skills
• Social – Developing sense of connection, belonging and a well-developed support system
The medical wellness paradigm refers to an approach to healthcare that focuses on promoting overall well-being and preventing illness rather than solely treating diseases and symptoms. It can be classified between pro-active and reactive offerings and services.
Types of wellness offerings
Wellness clinics are healthcare facilities that focus on promoting and maintaining overall health and well-being by addressing specific health concerns or achieving certain health goals. These facilities are clinically focused, in comparison to wellness resorts, and are staffed by doctors, nurses and therapists. They include chiropractic clinics, anti-ageing and aesthetic clinics, preventive medicine such as cancer screening and weight management, and nutritional counselling.
Wellness resorts are focused on promoting overall well-being by combining health and relaxation with a greater emphasis on rejuvenation. They are often located in beautiful surroundings, such as beaches, mountains, forests, hot springs or desert oasis locations. They have a diverse staff including wellness practitioners, fitness trainers, nurses, hospitality professionals and others. Therapies include:
• IV drips for infusion and rejuvenation
• Yoga and pilates
• Meditation and mindfulness
• Healthy dining
• Digital detox
• 360 health assessment
• Hyperbaric oxygen treatment
• Outdoor experiences such as cycling and hiking
Wellness market trends
As of 2022, the MENA region has shown the strongest resilience, recovery and growth since the start of the pandemic.
The MENA wellness economy in 2022 was at $145.40bn, an annual average growth of 14.7 per cent (2020-2022). Sectors such as personal care and beauty, healthy eating, nutrition and weight loss are the major contributors. However, it is important to note that some of these sectors overlap with each other. Post-pandemic, segments such as physical activity, wellness tourism and spas have witnessed an increase in market share due to growing health awareness and state of the art infrastructure. In addition, UAE has earned a spot in the Top 20 destination markets for wellness tourism and spas in the year 2022.
The wellness tourism expenditure has increased from $2.8bn in 2019 to $5.44bn in 2022. The average expenditure per wellness trip has grown the fastest in MENA region, reaching USD 1,354 per trip in 2022. The MENA region witnesses an equal split (50 per cent) of international and domestic wellness tourist during 2022, which depicts high demand for wellness services within the domestic market.
Why the UAE for wellness choices?
Location
The UAE is strategically located with 10 major airports, 12 seaports, 6 national carriers and an elaborate network of roads connecting to more than 200 countries across the globe. This connectivity allows one third of the world’s population to reach the UAE within 4 hours and two thirds to reach it within 8 hours. Approximately 1.5 per cent of the global UHNW Individuals are within a 4 hour flight time and a substantial amount are within an 4-8 hour flight time, making the UAE an attractive location for wellness tourism.
Increased medical tourism
The UAE leads the MENA region as a medical tourist destination; and on the global stage the Emirates of Dubai ranks 6th and Abu Dhai ranks 9th as per the global medical tourism index 2020-2021.
From a treatment perspective, medical tourists visited the Emirates mainly for treatments in dermatology and skincare, fertility treatment and orthopaedics due to the number of internationally recognised professionals, quality medical infrastructure and overall tourist experience.
The UAE tourism strategy 2031 aims to attract 40m hotel guests by 2031 and add 100bn in tourism investment.
• Abu Dhabi received 18m tourists in 2022 with a five-star hotel occupancy at 70 per cent.
• Dubai received 12.8m tourists in 2022. Most tourists were from Europe at 19 per cent, followed by South Asia at 18 per cent and then GCC at 16 per cent. The average hotel occupancy was more than 75 per cent.
• Dubai received 674,000 medical tourists in 2022 spending AED992m.
Cultural appeal
The UAE’s vibrant cultural heritage and traditions offers a compelling setting for wellness resorts, incorporating special experiences such as herbal treatments and cupping therapies with guided cultural tours, enhancing the overall stay and experience.
Demand for luxury services
UAE’s reputation as a luxury tourism hub attracts visitors who are willing to pay a premium for unique and high-quality experiences. Moreover, it has affluent population seeking personalised care and wellness services. As such, wellness resorts offering premium services and facilities are likely to resonate with this market.
Ease of doing business
The UAE is ranked 16th in ‘Ease of Doing Business’ out of 190 economies globally in 2020. Political stability and a conducive business environment has enabled the UAE to become a preferred destination for investors and tourism. Moreover, UAE offers robust infrastructure including advanced transportation, utilities and amenities, which can facilitate the development and operations of a wellness resorts.
Opportunities
• Comprehensive medical wellness services combined with luxury experiences can attract high-income clients
• Establishing facilities that integrate traditional medicine with modern treatments including focus on preventive health services can attract individuals seeking proactive and holistic care
• Creating medical tourism packages that includes wellness services can attract international visitors seeking a comprehensive health experience
• Developing real estate projects focused on wellness such as residential complexes with integrated wellness services can cater to the growing demand for healthy living spaces
Key success factors
Selecting a strategic location that provides easy accessibility, scenic views, and privacy can increase the resort’s attractiveness and convenience for visitors.
Forming strong partnership with local healthcare providers, fitness centres and wellness practitioners can enhance service offerings, broaden market reach and improve overall quality.
The UAE’s advanced infrastructure and accessibility makes it easier for both residents and tourists to take advantage of such medical wellness services. Demand for wellness services in UAE will be driven by the steady flow of tourists seeking luxurious and distinctive experiences combined with a larger proportion of individuals with high disposable income.
CONTACT INFORMATION
https://www.knightfrank.ae/advisory-and-consultancy/healthcare-development-and-consultancy