Water Park Investments Boost Occupancy and Revenue in Middle East Resorts
The Kingdom of Saudi Arabia is on track to have 320,000 new hotel rooms by 2030 to accommodate the projected influx of 150 million annual tourists. While this is great news for the Kingdom’s travel and tourism industry, it means the future of resorts in the market will be highly competitive when it comes to attracting visitors to stay at their property.
To support hotel owners and investors, WhiteWater partnered with Hotel & Leisure Advisors in 2019 to study the impact of aquatic amenities on guest satisfaction and financial success, including RevPAR, ADR, and occupancy rates. In 2024, they revisited this study to analyze five years of data, aiming to understand the long-term financial correlation between aquatic amenities and the performance of hotels and resorts. The updated study provides insights into how these amenities can drive increased guest satisfaction and enhance overall property success.
Transformative Impact of Aquatics on Hotel Performance
Analyzing data from Smith Travel Research (STR), which specializes in premium data benchmarking, analytics, and marketplace insights for the global hospitality industry, revealed a significant advantage for properties equipped with aquatic amenities such as water slides, rides, wave pools, splash pads, surf simulators, and multi-level play structures. In 2023, Middle East hotels featuring these amenities achieved an average RevPAR level 53% higher than the regional average.
“Adding water park features has been transformative for hotels in the UAE and Qatar,” says Jeremy Gray, VP of Business Development for WhiteWater. “These attractions enhance guest satisfaction and create unique selling points, setting these properties apart in a competitive market. 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.”
Interestingly, this trend extends beyond the Middle East. In North America, properties with aquatic amenities saw RevPAR levels 29.1% to 111.3% 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% to 78.1% higher RevPAR, indicating continuous growth for properties investing in aquatic attractions.
Aquatic Attractions as Revenue Drivers: Lessons from Atlantis Dubai
With over 300 hotels working with WhiteWater to add aquatic amenities, one example that stands out is Atlantis Dubai. With two world-class resorts situated on Palm Jumeirah Island, Atlantis Dubai has over 2,300 rooms with 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. With the water park growing in three phases, the property was able to fund their expansions by the profits of their investment in the park and continue to offer their guests more and more, getting them to come back after their initial opening. In 2023, the water park attracted 35-40% of visitors from the connected hotels and 60-65% from tourists and residents who purchased day passes for an approximate attendance of 1.8 million over the year.
Vice President of Atlantis’ Marine & Water Park division, Sascha Triemer, said, “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.”
Creating a Destination with Family-Centric Amenities
Large-scale water parks, like the impressive 225,000-square-meter 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, Hilton Salwa Beach Resort made a strategic move by adding the Desert Falls Water and Adventure Park in 2021. Spanning 60,000 square meters, Desert Falls 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 towards different age groups. This approach is crucial for maintaining higher occupancy rates and maximizing revenue, as families are more likely to stay longer and spend more when a variety of engaging activities are available for all ages. Management reported that 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 with 1,500 square meters of aquatic amenities. This park offers a set of adventure-themed attractions, like an aquatic ropes course and a FlowRider Double surf simulator. As Jeremy Gray points out, “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.”
A Positive Future for Hotels & Resorts
With a surge in visitors to the Kingdom anticipated, properties across the country have a unique opportunity to stand out from the crowd by strategically planning their amenities from the ground up. Neighboring destinations like Dubai and Qatar offer valuable insights, highlighting the power of well-designed aquatic features in attracting families, enhancing guest satisfaction, and driving positive financial results. As Saudi Arabia establishes itself as a major tourist hub, incorporating aquatic attractions could be a strategic decision, propelling the industry towards continued success.
With over 40 years of expertise in hotel and resort water park design and supply, WhiteWater offers tailored amenities that enrich the guest experience and encourage longer stays. This personalized approach helps drive higher average daily rates, maximizing revenue potential for hotels and resorts.
