Starting a massage store in Thailand is a business that comes with both opportunities and risks. To help you prepare well and succeed, ThaiHand will share with you 5 things you should know before starting a massage parlor from legal to business perspectives.
After the COVID-19 crisis, another booming business is in the massage and spa industry. Recently, there are two main factors encouraging more massage parlor openings. The first is the return of tourists who have become more interested in health and wellness because a serious disease like COVID makes people more willing to invest in health care. The second factor is the closure of many spas and massage stores during the pandemic, resulting in a shortage of massage parlors to accommodate the increasing number of tourists returning to Thailand.
5 Things to Know before Starting a Massage Parlor or Spa
1. Applying for a license to open a massage parlor from the Department of Health Service Support, Ministry of Public Health
Operating a spa or massage business, whether it is for health or beauty purposes, is considered a business falling under the category of health service establishments according to the Health Establishment Act. Business operators must apply for a license before commencing operations. Operating a business without a license may result in imprisonment up to 6 months or a fine of up to 50,000 baht, or both.
ThaiHand has compiled comprehensive methods and steps for applying for a license for massage and spa business. Details are as follows:
3 Steps to Register a Massage Parlor: Registration Process and Time
- Submit an application for a license
1.1 Officer reviews the completeness of the documents.
Sample of the Application Form for License to Operate a Health Establishment (สพส.1)
1.2 The officer checks the qualifications of the massage parlor owner, massage therapists, and operator.
Qualifications of the Massage Parlor Owner
According to Section 13, applicants for a license to operate a health establishment must be at least twenty years old and must not possess any of the following characteristics:
- Bankruptcy
- Mental incompetence, disability, or quasi-disability
- Previously convicted of offenses related to sexual crimes under the Criminal Code, drug offenses, offenses related to prevention and suppression of human trafficking, or offenses related to prevention and suppression of prostitution
- Suffering from contagious diseases deemed socially unacceptable, chronic alcoholism, or drug addiction
- Currently under suspension of a license to operate a health establishment
- Previously had a license to operate a health establishment revoked and has not completed the two-year waiting period from the date of application submission.
In the case of a juristic person applying for a license to operate a health establishment, the authorized representative of that juristic person must possess qualifications and must not have any disqualifications as specified in the preceding paragraph.
Qualifications of Massage Therapists
According to Section 23, individuals applying to register as massage therapists must possess qualifications and must not have any disqualifications as follows:
A. Qualifications:
- Be at least eighteen years old.
- Hold a certificate or diploma in health service provision certified by the Department of Health Service Support.
B. Disqualifications:
- Mental incompetence, disability, or quasi-disability.
- Previously convicted of offenses related to sexual crimes or property offenses under the Criminal Code, drug offenses, or offenses related to prevention and suppression of prostitution, unless the person has been free of conviction for at least one year before the registration application.
- Suffering from contagious diseases deemed socially unacceptable, chronic alcoholism, or drug addiction.
Qualifications of Spa Operators
According to Section 21, applicants for a license to operate as operators in health establishments must possess qualifications and must not have any disqualifications as follows:
A. Qualifications:
- Be at least twenty years old.
- Hold a certificate or diploma in health service provision certified by the Department of Health Service Support.
- Have passed the examination and evaluation of knowledge and abilities conducted by the Department of Health Service Support.
B. Disqualifications:
- Mental incompetence, disability, or quasi-disability.
- Previously convicted of offenses related to sexual crimes or property offenses under the Criminal Code, drug offenses, offenses related to prevention and suppression of prostitution3. Suffering from contagious diseases deemed socially unacceptable, chronic alcoholism, or drug addiction.
- Suffering from contagious diseases deemed socially unacceptable, chronic alcoholism, or drug addiction.
- Currently under suspension of a license to operate as an operator.
- Previously had a license to operate as an operator revoked and has not completed the one-year waiting period from the date of application submission.
Officer verifies the lawfulness of the location and the opening/closing hours of the massage parlor. The operating hours of the health establishment must be clearly defined and certain. The services can start from 6:00 AM and operate until no later than 12:00 PM.
Sample of the Document Verification Form for Application for a License to Operate a Health Establishment (Form 1)
1.3 Officer verifies the lawfulness of the location and the opening/closing hours of the massage parlor. The operating hours of the health establishment must be clearly defined and certain. The services can start from 6:00 AM and operate until no later than 12:00 PM.
1.4 Officer issues a receipt for the application [Application Receipt Form for License to Operate a Health Establishment (สพส.2)].
1.5 Officer records that the documents are complete on the document verification form (Form 1).
1.6 Officer informs about the assessment standards for massage parlors.
1.7 Officer forwards the documents to another set of officers responsible for inspecting massage parlors.
1.8 The second set of officers re-check the documents. If everything is complete, they sign on Form 1. The date signed will be taken as the first day of the process of evaluating license applications.
1.9 Officer schedules an appointment for inspecting the massage parlor.
2. On the inspection day, the officers inspect the massage parlor and take photos according to each standard
2.1 The officers summarize the inspection results and submit them to the committee for consideration.
3. The committee reviews the application within 60 days or extends the period for up to another 60 days, and recommends that the licensing authority issue the license.
3.1 If the committee determines that the massage parlor fulfills the criteria, the officers will inform the business operators and require payment of fees of 10,000 baht within 60 days.
3.2 Once the fees are paid, the officers issue a receipt [Application for a License to Operate as an Operator in a Health Establishment (สพส.8)]
3.3 The officers prepare the license and have the authorized person sign it within 7 days along with signing and recording shop history and entering data into the Ministry’s database.
3.4 The officers deliver the license to the massage parlor.
3.5 If the fees are not paid, the matter will be processed for removal from the system, and the committee will be notified.
3.6 If the committee decides that the parlor does not pass the criteria, the officers will inform the parlor in writing within 7 days.
3.7 The massage parlor can appeal to the Ministry’s Permanent Secretary within 30 days of acknowledging the result. The Permanent Secretary will make a decision within 30 days or extend the period for up to another 30 days.
Conclusion for License Application
2. Understanding the Target Group and Market
When opening a massage parlor, you must consider your target customers. For example, are they Thai or foreigners? If they are Thai, what demographic do they belong to, what is their approximate income, and what is their lifestyle like? If the customers are foreigners, which country are they from? Are they tourists, or are they expatriates living in Thailand? All of these factors depend on the location of your business, which will be discussed further in the next topic.
3. Location of your Massage Parlor
Location plays a crucial role in the success of your massage parlor. It determines the primary customer demographic you will cater to. For instance, if your parlor is located in a business district, your main customers are likely to be office workers. This might lead to good sales during weekday evenings but fewer customers on weekends. On the other hand, if your massage parlor is situated in a residential area, your customers may include elderly individuals or stay-at-home housewives who are available during weekdays and you are likely to have opportunities to earn more money during the weekends.
4. Profit and Return on Investment (ROI)
One of the most significant factors affecting your return on investment is investing in infrastructure. If you already own a building, you’ll have better business costs than constructing a new one from scratch. Another common approach in opening a massage business is to lease space from someone else. Typically, a massage business should achieve a net profit of around 15-20% of sales. The main costs usually come from massage therapist daily minimum wage and massage therapist fees. Business owners may have different return goals depending on their initial investment and pricing structure and brand. From the ThaiHand team’s experience, we’ve seen massage business owners achieve payback period as early as within 2 years or up to a decade.
5. Human Resource Management Readiness
The main challenge spa & massage businesses face is human resources-related issues since it’s a service-oriented business relying heavily on human resources. Therefore, there will always be a need to manage, handle, and resolve issues for people at all levels, including management, receptionists, and massage therapists. Problems can arise in various forms, such as internal conflicts, resignations for overseas work, customers booking therapists directly for at-home services, or even disputes and conflicts among staff. Hence, if you’re planning to own a massage business, you must be prepared to handle human resources management.
If you have reached this point and still have the determination and commitment to start a massage parlor, ThaiHand is here to provide encouragement and support to you at every step, from brand conception, business planning, finding architects and contractors, recruiting and training massage therapists, installing the ThaiHand POS Management System to marketing. ThaiHand Massage can offer assistance in the Thai massage industry with over 5 years of experience, aiming to elevate and transform Thai massage through an interconnected database system. You can contact us via Line: @thaihandmassage or visit our Facebook Page by clicking the link.
You may also fill the interest form for ThaiHand POS via the link below, and our team will be in touch shortly.
