BANGKOK – The closure and sale announcement of the famous massage parlour in Bangkok, “Emmanuelle Entertainment,” located in the Ratchada area for 645 million baht, just recently, seems to indicate the state of this business in Thailand quite well.
The location of Emmanuelle is on leased land, with an area of approximately 1 rai. The land in front is leased by the State Railway of Thailand (SRT), with the lease expiring on 30 April 2027. Although it’s possible to extend the lease, the business owner has chosen not to do so.
Sopon Pornchokchai, President of the Thai Real Estate Information Center (AREA), stated that the massage business reached its peak in 2013 with 527 establishments in Bangkok alone. In 2007, there were only 390, indicating significant growth. However, many of these massage establishments, including spas and related businesses, are large-scale operations, contributing to the high numbers.
However, in 2024, there are only 71 authentic massage parlour in Bangkok, with the highest concentration in Din Daeng district (19), followed by Huai Khwang (18), Ratchathewi (9) and Bang Phlat (4). Otherwise, they are scattered, with only 1-2 businesses in each district.
The top five massage businesses with high registered capital are:
- Youtopia Entertainment Complex, Huai Khwang District, Bangkok: 300 million baht
- Plaza, Ratchathewi District, Bangkok: 88.2 million baht
- La Belle Entertainment Complex, Huai Khwang District, Bangkok: 50 million baht
- Velthee Pilar, Nonthaburi Province: 100 million baht
- Wee Chai Somboon, Huai Khwang District, Bangkok: 80 million baht
There are 29 massage establishments in other provinces, most in Chonburi (6), followed by Nakhon Ratchasima (4), with only 1-2 establishments per province in others such as Krabi, Khon Kaen, Chanthaburi, Chiang Mai, Nakhon Pathom, Nonthaburi, Phuket, Rayong, Samut Prakan, Saraburi, Sukhothai, Surat Thani, Udon Thani and Ubon Ratchathani.
When evaluating massage facilities, assuming that each facility has about 50 service providers, which with 527 facilities in 2013 equates to a total number of about 50,000 service providers, with each person providing services about three times a day, the revenue would amount to about 82.125 billion baht per year, assuming an average rate of 1,500 baht per person.
In this respect, the likelihood of massage businesses collapsing and disappearing is still low. If there are mergers between hotels and massage establishments or spas (of the higher category), the chances of survival are greater.
Sopon mentioned that from a financial perspective, currently, a typical 3-star hotel might have an occupancy rate of 60 percent with 100 rooms and a net income of 1,000 baht per night, resulting in a monthly income of 1.8 million baht. However, in the case of a massage establishment with 100 rooms, if the net room rate is only 600 baht per night (reflecting current market conditions) but with clients coming in once per day, the monthly income would also be 1.8 million baht. Moreover, other revenue streams such as food and beverages are likely to be higher compared to a regular hotel.
“Therefore, the possibility of massage businesses collapsing and disappearing altogether is still low at this stage. If there is further integration between a hotel and a massage facility or (higher-end) spa, the chances of sustainability will be even greater.”
However, if property prices are rising due to the prime location, it might be better to sell the business. For example, if a massage or hotel business generates a net income of 1.8 million baht per month or 21.6 million baht per year with a plot size of about 1.5 rai or a price of 450,000 baht per square meter (after deducting construction and other costs), it would be advantageous to sell the business at a higher land price of 1 million baht per square meter. This avoids the complexity of running the business and allows investment in other ventures.
So the massage business is not quite dead yet. There are still opportunities and potential for sustainability.
The massage parlour, or Ap Op Nuat in Thai, according to Claude, offers a range of services, including bathing, steaming, and massage. However, the term is often associated with establishments that provide sexual services, operating under the guise of a legitimate spa or massage parlour. It is important to note that not all massage parlors or spas in Thailand provide sexual services, and many operate as legitimate businesses offering therapeutic treatments.
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