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It could have developed somewhat organically. Let's say Thailand had looser social norms and law enforcement around sex work, plus being a tropical paradise, and that led to it becoming a popular tourism destination for degenerates. As that reputation built and became a bigger part of the economy, local institutions would lean into it and they'd expand into more niche parts of the industry. Deeper markets can have more specialization.
An interesting lesson in the organic formation of supply and demand. the loose social norms could be attributed to Buddhism, perhaps and the lack of judgment around sexual acts etc.
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