Enhancing Revenue with Water Parks in Asia-Pacific
As tourists gain more spending power, their expectations rise significantly across the board.
When selecting accommodations, the quality and variety of amenities available on-site are becoming increasingly crucial. In the Asia-Pacific region, it’s no surprise that hotels and resorts featuring water park amenities are frequently highlighted in travel guides and recommendations.
But do hotels and resorts with water park amenities actually outperform those without? We sought research to uncover the truth.
Occupancy, ADR, RevPAR: The Impact of Water Park Equipment on Hotels and Resorts
Recognising the vast potential within the hospitality sector early on, WhiteWater has successfully completed over 300 projects for hotels and resorts globally. To assess the benefits of aquatic amenities for these properties, we collaborated with Hotel & Leisure Advisors (H&LA) to conduct research and compile the report, “Global Analysis on the Impact of Water Park Equipment on Hotels and Resorts” in 2021.
Three years later, we aimed to verify whether the initial findings still held true, so we partnered with H&LA once more for a follow-up study. As with the first report, H&LA gathered data on occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) from STR, a hospitality data benchmarking company, across six categories of hotels and resorts worldwide. The results confirmed that these metrics are indeed higher for properties equipped with water park amenities.
Overall, North America boasts the most developed market in this sector. In 2023, the RevPAR of all hotels featuring WhiteWater equipment in North America was 111.3% higher than the overall average for U.S. resorts and hotels, with resort RevPAR 29.1% higher. This data clearly demonstrates that incorporating aquatic attractions significantly enhances the value and revenue of hotels and resorts in their respective markets.
This trend is also emerging in the Asia-Pacific region, where several innovative properties are already reaping the benefits.
The data indicates that hotels and resorts with WhiteWater equipment in Asia-Pacific and the Middle East enjoy a RevPAR level 119.6% higher than the local average. With the company’s extensive experience working alongside leading hospitality brands in the Asia-Pacific, let’s explore some successful examples.
Helping to Change the Tourism Driver for a City
Traditionally known for its gaming industry, the government of Macau has been actively promoting the city’s transformation into a tourism and leisure hub in recent years. In this context, Studio City has invested in expanding its resort, which now includes Macau’s first water park—spanning over 26,000 square meters—featuring both indoor and outdoor areas, complete with water slides and aquatic play structures entirely supplied by WhiteWater.
The ability to operate the water park year-round not only provides Studio City with a unique competitive edge but also extends guests’ lengths of stay and increases their spending, elevating Macau’s leisure and entertainment offerings both regionally and internationally.
“Macau’s new focus now is on food and shopping, so attractions are naturally a must,” stated Melissa Chung, Director of Spa, Leisure & Aquatics at Studio City. “The city’s first water park is not only very valuable for our hotel guests, but it also serves other visitors and the community at large, creating new job opportunities for locals.”
Since the opening of its outdoor section in 2021 and the indoor section in 2023, Studio City Water Park has gained immense popularity among both in-house guests and non-hotel tourists, earning several industry accolades.
Attracting Consumers Who Prioritise Experiences: Cheval Blanc Randheli
It’s widely acknowledged that consumers are increasingly valuing experiences over material possessions. For hotels and resorts, this shift means the need to stand out from the competition, and incorporating aquatic amenities is an excellent way to achieve this.
Take Cheval Blanc Randheli, for instance. Situated in the Maldives, this 7-star hotel is renowned for its pristine white beaches and crystal-clear waters, offering luxurious overwater villas and island villas with spacious living areas, private infinity pools, and direct sea access.
To further enhance its appeal, the hotel has recently upgraded its offerings to include a FlowRider® Wave-in-a-Box surf simulator and two Pool Siders, attracting new visitors seeking thrilling experiences beyond the relaxation the property provides. Guests can enjoy the exhilarating sensations of surfing and water slides right at their doorstep, encouraging them to extend their stay, which ultimately leads to increased revenue for the hotel.
Attracting More Family Visitors: Rydges Resort Hunter Valley
Located in the heart of Australia’s wine country, Rydges Resort Hunter Valley features 150 hotel rooms and 268 villas, alongside facilities such as a large conference centre, golf course, and a water park. The resort’s guest demographic is composed of 60% corporate and group visitors and 40% leisure guests, with an annual occupancy rate between 60% and 70%, peaking on weekends. Weekday occupancy primarily relies on group and corporate business, while weekends and school holidays attract leisure guests.
“Our water park is centrally located among the hotel facilities, adjacent to the pool, and has been particularly beneficial for catering to the family leisure market. We are certainly pleased with our decision to include it,” remarked General Manager Robert McGufficke.
The hotel’s water park, provided by WhiteWater, features an AquaPlay 650 structure with three slides, a tipping bucket, and various interactive play features, all complemented by beautiful Life Floor foam-rubber safety tiles. The play area and structure are themed around local vineyards. The water park is open year-round and exclusively for hotel guests, making it a unique differentiator in the region.
“The AquaPlay installation has been a fantastic addition to the resort’s water park amenities, helping to increase family travel to Rydges Resort Hunter Valley and to the Hunter Valley wine region itself,” concluded Robert.
Enhancing a Large Entertainment Complex: SnowStar
In recent years, Asia has witnessed a surge in the development of large entertainment complexes that incorporate lodging and water park amenities. A prime example is SnowStar in Shanghai, which features the world’s largest indoor ski hall at 90,000 square meters. Within the 350,000-square-meter complex, there is a hotel, convention centre, shopping street, and an indoor/outdoor water park boasting over 15 attractions.
This rich array of experiences, which extends the operating season, positions SnowStar as a one-stop destination for family vacations, setting a new international benchmark for the leisure and hospitality industry.
The Perfect Addition When Rebranding a Property
Like many businesses, hotels and resorts often undergo sales or rebranding, presenting a prime opportunity for renovations and enhancements. A new water park can be a compelling way to attract guests to a property under new ownership or management.
Grand Mercure Okinawa Cape Zanpa Resort on Japan’s southern paradise island exemplifies this. With a new name and management comes a brand-new water slide tower, tastefully designed to match the luxury hotel’s aesthetic. Featuring two body slides and WhiteWater’s iconic Boomerango water slide, the resort is certainly distinguishing itself from competing properties.
Get the Research to Support Your Investment Decisions
Explore more case studies and data from the APAC region and beyond regarding how—and to what extent—water park amenities enhance value within the hospitality sector. Download the “Global Analysis on the Impact of Water Park Equipment on Hotels and Resorts 2024” for further insights.
