Is the spa and fitness a lucrative business to go into this year in the Philippines?

Is the spa and fitness center a lucrative business to go into this year in the Philippines?Is the spa and fitness a lucrative business to go into this year in the Philippines?First, the capex is high for interiors to resemble relatively nice "zen"-like atmosphere, not to mention the furniture, fixtures and equipment. You also have to locate in a populated area that does not have a good spa-- which may be difficult considering that neighborhood spas and salons that offer simple massages (back/shoulder, foot spa) are dime a dozen. If your fixed costs are high and you have to borrow from a bank to augment capital, you have interest to pay and amortization of principal.



Your revenue may not be high enough, because of competition, not just from other nearby spas/salons, but popular ones that are either mall-based or have existed for quite a while and have their regulars. As for expenses other than interest, rent can be high, and utilities as well (electricity, water, laundry). Other problems are hiring of good trained masseuses that have PT licenses --- turnover can be high because of pirating).



Assuming your revenue can cover expenses, would the profits be enough to cover depreciation of assets (because you will absolutely have to change towels and robes once every so often, and renovate in a few years to remain updated and maintain quality), principal repayments of loans (if any), and your own personal income?



Hard to say. Good luck with whatever you decide.Is the spa and fitness a lucrative business to go into this year in the Philippines?I do not think it is a "lucrative" business. The earnings of a spa and fitness business would be very limited in the Philippines due to the inability of the buisiness to get away with charging higher prices that are required to make a significant profit. For instance you can go to any spa in the Philippines and you are only charged a small amount of money for the services you get. If you were to get those same services in another country such as America you would be charged a much higher price. A massage in the Philippines can run a customer 500-1,000 pesos for an hour. That same massage in the U.S. could run a customer over $100. That is why spa and fitness has been lucrative in the U.S. in the past but now due the recession it has really been hurting the entire fitness industry. I would not get into that industry in the Philippines for these reasons alone but there are other reasons that I would never start a business in the Philippines. It is not worth it.