Ever wonder why ladyboys are so popular?
Well, there are three types of men attracted to ladyboys (and as a ladyboy myself, I can tell you I'm speaking from experience):
The first is bisexual men, which represents about 3% of the human population. A lot of these men have a great love of a feminine body (and mind), but want the male bits as well. Many more men are fair-weather bisexuals, meaning that they, 10,000 miles away from home, with nobody from work or church to catch them, will indulge in a sexual fantasy that they have been keeping on the back burner of their minds for many years. (Many men come to Thailand specifically for such fulfilment.)
The next type of men who are attracted to ladyboys are cross dressers and transvestites, who represent a surprising 10% of the male population. Many, many men receive sexual satisfaction not only from the girls in the clothes, but from the clothes themselves, and wearing women's clothes is a secret pleasure of many of them. These men often fantasize about being women, but would never be able to go through becoming a woman (and probably if given the choice, wouldn't), but they do want to be sexually involved with someone who has. (Call it vicarious sexual gratification.)
The final type of men who are attracted to ladyboys are submissive men, who represent about 15 to 20% of the population. Being "effeminate" is the outward manifestation of being mentally submissive and these submissive men seek out other submissive men (i.e. ladyboys) because they can be more open about their sexual interests and proclivities with a kindred spirit. (Try explaining to a bar girl that you want her to tie you up or spank you or otherwise "dominate" you... watch how fast they run.)
Anyway, it is fairly safe to say that a good one-third of men out there, given the proper scenario and the proper person, would go with a ladyboy at least once in their life. Given the fact that Thailand is the world capital of transsexuals, the percentage of sex tourists in Thailand who fit that bill (with many coming to Thailand specifically for the ladyboys) is probably higher.
As an aside, I am a very close friend to all of the girls at Tiffany's, hanging out with them on an almost-daily basis, and I can tell you without hesitation that the Beach Road streetwalking in-your-face prostitutes are no more representative of Thailand's transsexual population than the Red Light crack whores are representative of the girls you went to school with. Thailand's ladyboys constitute this country's most friendly, fun-loving, generous and compassionate population.
My advice to everyone out there: Take a pass on the katoey bars and get to know some ladyboys who hold down real jobs, have taken responsibility for their futures and haven't turned ripping of farangs into their chosen profession. You might be pleasantly surprised.