Thailand's spa and massage business facing "extinction" - 250,000 out of work

 

PIcture: Thai Rath

 

Thailand's once famous spa and massage business has been likened by its chief to an accident victim because of the pandemic.

 

And Thai Rath went even further saying the business was facing "extinction".

 

Having a spa or a massage - though popular among the Thai public - has been very closely linked to the tourism industry.

 

So along with the absence of foreign tourists and the reticence of Thai tourists to travel very much the industry is on its knees.

 

Executive at Chiva-Som International Health Resort and leader of the national spa association Krot Rojanasathian painted a grim picture of spa, massage and hotel employees.

 

Using language normally associated with roadside tragedies the media quoted him as saying that the spa business was barely breathing and needed CPR from the government.

 

Krot said that 80% of 8,000 businesses had already shut down.

 

Out of 300,000 people working in the sector 240,000 were now redundant. 

 

He called on a massive injection of cash to support wages up to 15,000 baht a month for many months just to save what was left of the industry. 

 

Source: Thai Rath

 

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Not a happy ending then ????    

spas were for foreign tourists, but thai massage is very much popular with locals, not even tourists.

Lock downs shut many other businesses. 

In times of crisis if they insist on charging the previous prises, they would be out of business.

A few months ago I was at Jomtien, I have seen closed 1 massage shop and 1 hotel spa.

They all looked pretty empty, but only one clinic agreed to an offered price of 150b/h and I have spend with them 6500b plus generous tips in thousands.

In Hua Hin looks worse, but they still insist on 200-300b/h. There is only one clinic offering 150b/h and they are pretty busy all day, with a waiting line in the evening.

a good therapist, and even street clinic, would survive through lock downs taking private home bookings or circumnavigating rules. For example in Hua Hin they were opened all time through the second wave, despite the law.

Different matter is with spas, hotel clinics etc - but they had big profit margin and big turnover with international tourists for many years. So for me they are not concern

 

5 hours ago, internationalism said:

Different matter is with spas, hotel clinics etc - but they had big profit margin and big turnover with international tourists for many years. So for me they are not concern

You are 100% correct, but it is the poor employees who are out of work. Not the fat cat owners.

The problem is that they don't know how to run a business.

When I look at the places which are still open here in Chiang Mai, they still ask for the same prices as before Covid and have hardly any customers.

If they lowered their prices they would probably still get customers. Five customers a day who pay 300THB, or 20 customers who pay 150THB, not so difficult what would generate more profit, the masseuses are sitting around there anyway.

27 minutes ago, jackdd said:

The problem is that they don't know how to run a business.

When I look at the places which are still open here in Chiang Mai, they still ask for the same prices as before Covid

 

Sounds more to me as someone who want to take advantage of the dire situation the world is in.

 

Why would they have to lower their prices, 300 Baht is already dirt cheap, and is their massage less good because of covid?

 

 

Just now, Susco said:

 

Sounds more to me as someone who want to take advantage of the dire situation the world is in.

 

Why would they have to lower their prices, 300 Baht is already dirt cheap, and is their massage less good because of covid?

Because lower prices would probably generate a higher demand, and effectively more profit, as explained in my previous post already, you should read all of it and not only the first half.

8 hours ago, webfact said:

Executive at Chiva-Som International Health Resort and leader of the national spa association Krot Rojanasathian painted a grim picture of spa, massage and hotel employees.

When you charge ฿15,000/night for a room and up to ฿56,500/night for a suite, it’s not surprising that things are looking “grim”.  Cut those prices by 90% and I’ll consider booking.

9 hours ago, internationalism said:

spas were for foreign tourists, but thai massage is very much popular with locals, not even tourists.

Lock downs shut many other businesses. 

In times of crisis if they insist on charging the previous prises, they would be out of business.

A few months ago I was at Jomtien, I have seen closed 1 massage shop and 1 hotel spa.

They all looked pretty empty, but only one clinic agreed to an offered price of 150b/h and I have spend with them 6500b plus generous tips in thousands.

In Hua Hin looks worse, but they still insist on 200-300b/h. There is only one clinic offering 150b/h and they are pretty busy all day, with a waiting line in the evening.

a good therapist, and even street clinic, would survive through lock downs taking private home bookings or circumnavigating rules. For example in Hua Hin they were opened all time through the second wave, despite the law.

Different matter is with spas, hotel clinics etc - but they had big profit margin and big turnover with international tourists for many years. So for me they are not concern

 

Don't know where you're going in HH, but they have lowered prices IME. Just like many businesses and services. 

 

Ymmv

19 hours ago, webfact said:

Having a spa or a massage - though popular among the Thai public - has been very closely linked to the tourism industry.

Two completely different industries... one offers a real herbal massage with real health benefits while the other offers a long hand-shake [with financial benefits].

13 hours ago, jackdd said:

The problem is that they don't know how to run a business.

When I look at the places which are still open here in Chiang Mai, they still ask for the same prices as before Covid and have hardly any customers.

If they lowered their prices they would probably still get customers. Five customers a day who pay 300THB, or 20 customers who pay 150THB, not so difficult what would generate more profit, the masseuses are sitting around there anyway.

In my experience the thai way of doing things would be to jack up prices on current customers. Fantastic if that has changed.

13 hours ago, jackdd said:

The problem is that they don't know how to run a business.

When I look at the places which are still open here in Chiang Mai, they still ask for the same prices as before Covid and have hardly any customers.

If they lowered their prices they would probably still get customers. Five customers a day who pay 300THB, or 20 customers who pay 150THB, not so difficult what would generate more profit, the masseuses are sitting around there anyway.

Better charge 600 baht only need few customers win win 

23 hours ago, internationalism said:

spas were for foreign tourists, but thai massage is very much popular with locals, not even tourists.

Lock downs shut many other businesses. 

In times of crisis if they insist on charging the previous prises, they would be out of business.

A few months ago I was at Jomtien, I have seen closed 1 massage shop and 1 hotel spa.

They all looked pretty empty, but only one clinic agreed to an offered price of 150b/h and I have spend with them 6500b plus generous tips in thousands.

In Hua Hin looks worse, but they still insist on 200-300b/h. There is only one clinic offering 150b/h and they are pretty busy all day, with a waiting line in the evening.

a good therapist, and even street clinic, would survive through lock downs taking private home bookings or circumnavigating rules. For example in Hua Hin they were opened all time through the second wave, despite the law.

Different matter is with spas, hotel clinics etc - but they had big profit margin and big turnover with international tourists for many years. So for me they are not concern

 

its just thai mentality, things go bad they normally increase prices i have no idea why they think like this