DRAGONS' Den star Duncan Bannatyne has shrugged off the impact of job losses in the Capital by announcing the opening of a new city centre spa.
His firm, Bannatyne Group, has invested £60,000 in the new spa, below its existing health club on Queen Street.
The ground floor of the building had fallen empty after a beauty salon trader moved out. But now it has been chosen as a new base for
Bannatyne's expanding luxury spa brand.
The facility is being launched today in a bid to take advantage of UK consumers spending more money on pampering themselves rather than going on expensive foreign holidays.
And the entrepreneur said that he chose Edinburgh for the new spa because of the strong demand being seen at the group's existing health club, which has seen turnover rise by two per cent on last year.
Mr Bannatyne, 60, the chairman of Bannatyne Group, said business remained strong in Edinburgh, despite the financial crisis leading to the unemployment rate in Edinburgh nearly doubling to 9,374.
"We haven't taken a hit from job losses; our health club (on Queen Street] is still trading well," he said. "I'm not sure exactly where the job losses have been in Edinburgh but we are certainly not finding them affecting us."
He said that demand from top-end customers for the company's spa business has been growing across the UK, with sales up 15 per cent on last year on a like-for-like basis. It now has 30 spas across the country. "Possibly people are looking after themselves more, going on holiday abroad less and spending more time on certain things in Great Britain," he said.
"Our health club business is getting more visits per member and it's up two per cent, so maybe people are doing more things in Britain and seeing the opportunity they can get in Great Britain.
"This is our third new opening of this year; the other two have gone very well and we are finding great demand for them."
Mr Bannatyne has the distinction of being the wealthiest of the entrepreneurs on Dragons' Den, with a personal fortune worth £320 million, making him the UK's 167th richest man, according to the latest Sunday Times Rich List. Aside from the health clubs, his business interests include hotels, media, TV, schools, property and transport.
Graham Birse, deputy chief executive of Edinburgh Chamber of Commerce, welcomed the investment in the city. He said: "The appeal of what is now happening to the Queen Street premises is that it is a classic example of good marketing; you find what you can do to expand and still attract your existing market.
"His comments about Edinburgh generally show that, even in the difficult recession that we are in, there are sectors that are still strong. While there are people who are losing jobs and there are businesses that have folded, it is still a relatively low number. And, despite that, businesses can still do well and expand."
The full article contains 508 words and appears in Edinburgh Evening News newspaper.
