Canadian hot tub sales predicted to increase in 2011

by MODE, ignore | May 9, 2012 3:42 pm

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Favourable weather and the country’s relatively quick economic recovery gave Canadian hot tub manufacturers a reason to smile in 2010.

In fact, the hot tub market, similar to the pool sector, started the season on a high note, with several manufacturers reporting sales increases in the first and second quarters. As the year progressed, however, uncertainty over the potential impact of the Harmonized Sales Tax (HST) in Ontario and B.C. prompted sales to falter in those two provinces.

Manufacturers such as Hydropool Hot Tubs in Mississauga, Ont., expected an extremely successful year coming out of the second quarter, as sales were well above 2009—until July, that is.

“At that point, the entire Canadian hot tub market fell during the months of August, September and October,” said Doug Gillespie, the company’s general manager. “A lot of it had to do with the HST coming in, as it created the perception that consumers would have to pay more for a hot tub.” (Ontario is one of the largest markets for hot tub sales.)

Since then, however, consumers in the two provinces have come to better understand the HST and its affect on big-ticket items, and most manufacturers are collectively forecasting a moderate sales increase in 2011. Furthermore, as gas prices continue to increase many families are planning ‘staycations’ and are looking to their own backyards for that weekend getaway.

Another reason for the spa industry to remain optimistic is the time has come for many to replace their hot tubs, says Gillespie.

“As people typically keep their hot tubs for approximately seven years, I think our industry will soon see an influx of people looking for a new hot tub equipped with today’s features and accessories.”

For a complete report on the state of the Canadian hot tub industry, watch for the May/June issue of Pool & Spa Marketing.

Source URL: https://www.poolspamarketing.com/trade/canadian-hot-tub-sales-predicted-to-increase-in-2011/

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