Spa firm off to dubai

Owner and CEO Surangrat Chirathivat said the deal with AMA Hospitality, a subsidiary of property developer the Nebula Group in Dubai, was signed early this month. Dubai's outlet will open under a franchise agreement.

The first stand-alone TPS will be located near Jumeirah Beach Road and is expected to open in mid-September.

Dubai's TPS will be the company's 10th international outlet to open this year. The company will open five more spa complexes this year in the United States, Macau and India, making 15 international outlets for the year.

Surangrat said the company collected US$200,000 (Bt6.68 million) as a franchise fee and expects sales of $1.2 million in its first year in Dubai.

Fifteen therapists and three management executives will be sent to work at the Dubai complex, which will be of a European-Arab style with modern Thai architecture. It will have 500 square metres of floor space accommodating 20 service rooms. Targeted customers are upper-income locals, expats and foreign tourists.

"Even with up to 250 spa outlets now available in Dubai, we see a huge potential to expand our business there, because people in Dubai enjoy a high standard of living," said Surangrat, adding that 80 per cent of the population were expats from more than 40 countries.

She said a company survey showed the average spending for spa treatment was $100 per head.

Moreover, Dubai has a population of 1.67 million and received 15 million tourists last year. The number of spas in Dubai is forecast to grow 30 per cent, as 250 hotel chains are located there.

"Most well-known international spa chains are now providing spa treatments there. But we remain confident about expanding our business and realising our plan to make TPS be among the top five most popular spas within a short period," Surangrat said.

She said she was not worried about competition, because in the past four years TPS had demonstrated successful spa management in New York and China, where they faced tough competition and difficult trade regulations.

Surangrat said the company would provide wellness treatment and not simply be a beauty spa and salon like some others. The company plans to open another two spa outlets in Saja and Abu Dhabi within the next four years.

Combined sales of all Thai Privilege Spas are expected to jump 10 times next year.