A survey conducted by Dubai-based water park manufacturer WhiteWater says that Middle East hotels featuring waterpark amenities achieved an average revenue per available room (RevPAR) level 53 pc higher than the regional average in 2023.
According to a press statement by WhiteWater, the study was conducted in association with Hotel and Leisure Advisors, a hospitality consulting firm, headquartered in the United States.
The survey studied the impact of aquatic amenities on guest satisfaction and financial success, including Revenue Per Available Room (RevPAR), Average Daily Rate (ADR) and occupancy rates. The survey studies how these amenities can drive increased guest satisfaction and enhance overall property success.
Transformative Impact of Aquatics on Hotel Performance
Analysing data from analytics firm Smith Travel Research (STR) has revealed a significant advantage for properties equipped with aquatic amenities.
These amenities include water slides, rides, wave pools, splash pads, surf simulators, and multi-level play structures.
“Adding water park features has been transformative for hotels in the UAE and Qatar. These attractions enhance guest satisfaction and create unique selling points, setting these properties apart in a competitive market,” says Jeremy Gray, Vice President of Business Development for WhiteWater.
“The significant uptick in occupancy and revenue metrics underscores the value of investing in such features. Water-based attractions attract families and thrill-seekers, translating into tangible financial benefits for the hotels,” Gray adds.
The survey says that this trend extends beyond the Middle East. In North America, properties with aquatic amenities saw RevPAR levels 29.1 pc to 111.3 pc higher in 2023 compared to the overall average of all resorts and hotels in the United States.
This is an increase from the 2019 study, which found a 20.4 pc to 78.1 pc higher RevPAR, indicating continuous growth for properties investing in aquatic attractions.
The statement adds that with over 300 hotels working with WhiteWater to add aquatic amenities, one example that stands out is the ultra-luxury resort Atlantis Dubai.
Atlantis Dubai features two world-class resorts on Palm Jumeirah Island, totalling over 2,300 rooms plus additional villas. Opening Aquaventure World in 2008, guests staying at the resort enjoy complimentary access, providing an additional driver for guests to stay at the resort.
The water park expanded in three stages, and the property was able to use the profits from that investment to finance these expansions. They also continued to provide visitors with more and more offerings, which encouraged them to return after the park’s initial opening.
In 2023, the water park attracted 35-40 pc of visitors from the connected hotels and 60-65 pc from tourists and residents who purchased day passes for an approximate attendance of 1.8 million over the year.
“Water parks are a major attraction, especially for families. This can lead to higher occupancy rates, increased spending, and improved guest satisfaction. We added a surf machine in 2018, which created quite a good value onto the property, followed by the opening of an additional phase which was the largest single Waterpark extension in the world including a third tower, saw our attendance nearly double over the past three years as we continued to invest in the park,” says Sascha Triemer, Vice President, Marine & Water Park Division of Atlantis.
Creating a Destination with Family-Centric Amenities
The statement adds that large-scale water parks, like the 225,000 sqm facility at Atlantis, are a major draw, but data shows that even smaller aquatic features can significantly benefit hotels and resorts.
With a similar increase in number of resorts under construction, Qatar recently saw a surge of over 100 hotels being built for the 2022 FIFA World Cup.
To differentiate itself, the high-end Hilton Salwa Beach Resort in Qatar made a strategic move by adding the Desert Falls Water and Adventure Park in 2021.
Desert Falls, spanning 60,000 sqm, boasts a mix of 18 attractions and 56 rides and helps to keep the family market on-site longer due to its ride mix of attractions that cater to different age groups.
According to the survey, this approach has been crucial for maintaining higher occupancy rates and maximising revenue, as families are more likely to stay longer and spend more when a variety of engaging activities are available for all ages.
The hotel has recorded the highest occupancy and ADR of resorts in Qatar in 2021 in part due to the addition of the water park.
Properties that have added just one or two well-chosen water slides have also seen positive impacts on their bottom line as seen by the Waldorf Astoria Lusail Doha, the luxury hotel in Qatar, with 1,500 sqm of aquatic amenities.
This park offers a set of adventure-themed attractions, like an aquatic ropes course and a FlowRider Double Surf Simulator.
“The size of the aquatic amenity doesn’t necessarily dictate success. The key lies in identifying your target demographic, understanding their desires, and curating a ride mix that stands out from your competitors. By creating an offering specific to your target, properties can attract visitors and keep them engaged within the resort for longer periods, as the research shows,” says Gray.