With and, Thailand has four major l a eehicle; China, India, Cambodia, and Myanmar. M s and , they opt in; however, China is limiting trade relations with India for bridgeload connections.

Compared to thookah hoses, Thailand has easier, lower level regulations. This is how Karen built her business. She moved with her family from Bali to Bangkok. Karen realized the expertise from her family business could help her with low barriers to entry.

Karen has a family business back in Bali selling Shisha. Balinese tourism is on sorry I , so the family business has shifted to selling the sticks for shisha and is okay, considering Bali has no federal laws to ban it.

She successfully moved to his 3rd shift lighter spot that had trade relations with China. That is no excuse to slack on keeping your family business going, and they are limiting trade relations with India for bridgeload connections.

David and Karen paint an example of what a partial regulation spectrum looks like across Asia. Whereas Europe has at least a minimum standard with the Tobacco Products Directive, Asia has nothing like that. Each country can practically write their own prescription, whether that be bans on products, complete deregulation, or anything in between. These disparities can be the difference between a successful business extension, or a customs seizure that obliterates your inventory. This comprehensive guide aims to explain the legalities of an operational shisha lounge across Asia, the Middle East, Southeast Asia, and East Asia, with pragmatic solutions when it comes to import regulations, licensing, and legal adherence.

The Three Regulatory Zones of Asia

When it comes to operation, Asia can be compartmentalized into three discrete areas. The first are Prohibitive Markets. Thailand, Singapore, and portions of China could approximately fit this model. Here, shisha tobacco and operating a commercial lounge as a business is generally illegal. Regulatory gray zones comprise the second category and includes markets like Vietnam, Cambodia, and Indonesia, wherein shisha is legally permitted to exist, yet remains ambiguous with no apparent means to obtain a license. The final category of markets have an Established Framework, are the UAE, Saudi Arabia, Malaysia, and Japan, and feature shisha and tobacco regulations with structured rules, licensing syhookah stemss, and enforcement.

A successful business model should be a conservative one, since regulatory measures are in constant flux and will invariably tighten.

Middle East Markets: The Heartland of Hookah Culture

Asia may be the cultural heart of hookah, and since the majority of the region is Middle Eastern, that is also true there. Though regulations will still vary country to country, as a business owner that is going to operate across the Middle East in shisha lounges, you will have a lot of operational leeway, unlike in most of Asia.

United Arab Emirates — Federal Standards, Emirate-Level Variation

In the United Arab Emirates, Federal Law No. 15 from 2009 on Tobacco Control stipulates 50% of packaging to carry health warnings, prohibits tobacco marketing, and prohibits smoking in public enclosed areas unless the public enclosed area has an exemption. The law’s complexity lies within the emirates.

Dubai is the most liberal emirate and the most liberal of the municipal authorities in the UAE. The Issuing Authority of the Dubai Municipality grants “shisha cafe” permits for cafes to provide smoking indoors, however, the cafes must provide adequate ventilation to meet the standard of six air changes an hour and must also be situated more than 150 meters away from residential buildings, schools, and mosques. As of 2021, Sharjah has banned shisha in cafes outside of hotels. Abu Dhabi lies between the above, where shisha cafes also require a permit, although they are subject to annual regulatory oversight from the Abu Dhabi Quality and Conformity Council.

Across all emirates, the age is capped at 18 years, and the serving of a minor carries a fine starting at 5000 AED (approx. $ 1,360).

Saudi Arabia — The High-Barrier, High-Reward Market

Saudi Arabia is considered one of the fast growing shisha markets, despite having a requirement for all shisha tobacco to be imported to be registered with the Saudi Food and Drug Authority (SFDA) to be sold. Registration of the shisha tobacco varies in time between 3 and 6 months and each shisha tobacco product is required to have a lab test and a complete list of shisha tobacco product ingredients. Each variation of the shisha tobacco product is also required to be separately registered.

A shisha lounge will need to obtain a municipal license from the local Amanah and a tobacco retail permit from the Ministry of Municipal and Rural Affairs, which will require a site inspection, verification of compliance with tobacco retail permit procedures, and a police clearance certificate. The initial costs associated with the registration of tobacco products can be substantial; however, once approval is granted, a countrified and consistent market supply will be available. Tobacco lounges that comply with all the required regulations, by collaborating with imports and managing SFDA documentation for goods such as the Musthave Series dark-leaf shisha tobacco

Kuwait and Qatar

Follow the Gulf laws. Federal tobacco laws will be enforced with regional (municipal) licenses, mandatory registration of products, an 18-year-old age limit, and more inspections to come. The Qatar Ministry of Public Health somehow manages to inspect lounges regularly, and the previously relaxed control of the Kuwaiti market is transforming—especially with increased scrutiny regarding the sale of products to, and consumption by, children.

Southeast Asia: The Regulatory Patchwork

Southeast Asia will be the most fragmented and, undoubtedly, the most complex of all the Asian regions, with the most challenging regulations for operators of shisha lounges.

Malaysia — The Established Market

Malaysia’s Control of Tobacco Product Regulations 2004 (as amended) identifies shisha as a tobacco product. Since 2019, shisha has been banned in all food premises in Malaysia. As a result, all lounges providing food are expected to have designated smoking areas that are physically separated from the rest of the lounge and have separate effective ventilation. There are restrictions on advertising tobacco, the minimum age is 18, and all lounges are expected to be in possession of a business license issued by the local council (Majlis Perbandaran) which is issued following an inspection of the building as well as fire safety. While enforcement has been weak, some councils have issued shisha licenses without reservation while others have placed moratoriums on the issuance of shisha licenses. It is advisable to check if new shisha lounge licenses are issued in the council before committing to a location.

Indonesia — Opportunity in Ambiguity

There is no federal law in Indonesia that specifically regulates shisha tobacco or shisha lounges. Most shisha tobacco lounges in Indonesia are set up as hospitality businesses, which means that there is minimal regulation in that space. Although most of the Indonesian regulations create low barriers to entry and, therefore, create opportunities, there is also a lot of ambiguity in the regulations. As a conservative and cautious approach, many businesses would implement the Malaysian or UAE standards as a minimum in anticipation of future regulations being applied to shisha lounges.

Thailand — Prohibitive Market With a Loophole

Thailand’s Tobacco Product Control Act makes it virtually impossible to obtain an FDA license to import shisha tobacco, and therefore, makes the importation of commercial shisha tobacco into Thailand illegal. As a result of this regulation, most of the lounges in Bangkok source their tobacco through informal and illegal channels. For B2B operators looking to legally enter the Thai market, the safest option is herbal (shisha nicotine content-free) shisha, which is not considered tobacco and, therefore, falls under the Thai tobacco regulations, or partnering with a Thai FDA-licensed shisha tobacco importer.

Vietnam, Cambodia, Singapore

Vietnam and Cambodia don’t have specific shisha laws, but Vietnam does have laws that prohibit indoor (public) smoking, aside from designated smoking areas. Singapore has completely banned shisha tobacco since 2016, meaning that Vietnam has no viable operations for traditional lounges elsewhere. Only a few herbal shisha operations exist of the strict regulatory system.

East Asia: Japan, South Korea, and China

Japan – Strict but Clear

Japan’s health promotion law states that smoking indoors is restricted, but designated “tobacco specialty stores” that are primarily selling tobacco for on premises consumption are exempt. For a shisha lounge to fall under that category of tobacco specialty stores, at least 80% of the lounge’s business must be tobacco sales, and the lounge must be registered as a tobacco retail store; the lounge must also post clear signs that smoking is allowed; ensure that no persons under the age of 20 years are allowed to enter; and have adequate ventilation that meets the standards of Japan’s Ministry of Health.

80% threshold of revenue is a critical constraint. If a lounge sells food, alcohol, or coffee, then the non-tobacco sales must be 20% or lesser in order for the smoking restriction to be exempt. Japan’s tobacco tax can be 60% or more, which is the wholesale cost. International brands such as Adalya shisha are an adhesive and perfect fit because of their subtle and balanced flavor.

South Korea — Expanding But Controlled

South Korea recently saw its shisha market grow substantially in both Hongdae and Gangnam. Indoor smoking is prohibited by the National Health Promotion Act – however, tobacco specialty stores are exempt. There isn’t a specific license for operating a shisha lounge, so most shisha lounges generally operate as entertainment businesses or tobacco retail stores. Some of the key requirements for opening shisha lounges are: registration as a tobacco business, age verification (the legal age is 19 and is strictly enforced with penalties up to 10 million won), ventilation, and shisha tobacco (which is regulated by the MFDS and may take two to three months to process) must be imported for the lounge.

China — The Complicated Truth

China has no shisha ban at a federal level, therefore their hookah culture is relatively strong and thriving in Shanghai, Beijing, and Guangzhou. The State Tobacco Monopoly Administration (STMA) has a monopoly in all the tobacco trade in China. Because the existing license categories may not necessarily fit in with shisha lounges, most shisha lounges register as “catering service” or “entertainment” businesses.

Fire safety regulations are strict so open flame and charhookah coals are a concern. Shanghai has the most developed shisha scene and most shisha lounges are built to code and are compliant, while Beijing has more restrictive policies along with crackdowns that take place prior to major political events. The premium Steamulation Mini hookah is a German-Engineered, compact hookah that has appeal in markets where space is limited, such as Asia, however the importers must verify distribution is compliant with the laws in their area.

Import and Customs: The Shared Compliance Challenge

Import compliance is tricky for operators, and common requirements across Asia include:

• – Product registration: Before shisha tobacco can be imported into most countries, it is required to be registered with the relevant country’s national health authority. This includes step-by-step disclosure of the shisha’s tobacco and other ingredients, laboratory testing, and payment of registration fees.
• – Local language labeling: Countries specify local language health warnings, and there may be size and graphic requirements for health warning labeling.
• – Tobacco duties: Import duties can be moderate in some countries (like Malaysia) and extremely high in others (like Japan, where certain import duties, taxes, and levies combined could result in a 100% tax on the total landed cost of shisha tobacco).
• – Customs clearance: Engaging a customs broker is a non-negotiable requirement of doing importation of tobacco.

Practical Compliance Strategy

Before market entry: establish your customs clearance (prohibitive, gray, or clear) and determine if importation is allowed by contacting relevant country customs or a customs broker. Identify all compliance requirements.

During establishment: Install the strictest regional ventilation standards, where applicable (Japan/UAE). Generally, the costs of retrofitting standards are higher than doing it right the first time. Implement age verification systems immediately. Establish the highest, most stringent standards for your industry.

In the course of business: Maintain documentation for customs clearance, supplier statements, and ingredient disclosure. In gray areas, these documents are the best defense against arbitrary enforcement.

Conclusion

Opening a shisha lounge or importing tobacco to Asian countries is a lengthy process that involves extensive and ongoing work to keep up to date with the latest regulations. However, the opportunities are vast because there is a large and growing demographic of young, urban dwellers and an expanding middle class. Regardless of what country you are looking to set up a shisha lounge in, the cultural acceptance of hookah makes this a relaxing and enjoyable business venture for the modern hospitality industry.

If you are operating a lounge or considering setting up a shisha lounge like most countries in Asia, you have the opportunity to offer a unique and differentiated experience. Linkup Hookah offers international importation of shisha tobacco for shisha lounges in various locations like Dubai, Malaysia, and Japan. The international regulatory requirements ease the burden of setting up lean and regulatory compliant shisha lounges.

The complexity of shisha lounges in Asia is diverse. Understand the regulations and respect cultural differences.