Healthy profits

Medical tourism is a US $20 billion industry.

The medical tourism sector is expanding rapidly, but tour operators and travel agents need to do their homework first as Jamie Knights discovers.

Medical tourism is a US $20 billion industry that is expected to be worth $60 billion in five to 10 years’ time.

Not only are a range of destinations looking to tap into this potential goldmine of revenue, hotels, airlines and tour operators are also looking for their slice of the pie.

Managing director and CEO ExHealth, and Medical Tourism Association, USA, chief strategic officer Dr Prem Jagyasi said the new opportunities for travel agents had arisen primarily due to cost.

“The cost of healthcare in places like the US is extremely high — a procedure worth $43,000 in the US can be conducted in India, Singapore or Thailand for $10,000 in a hospital that is internationally accredited,” he said.

“Even if you calculate business class travel costs and five-star hotel accommodation with luxury treatments you are still talking 50% to 75% less — it offers value for money.”

The second factor in the rise of medical tourism was need, according to Dr Jagyasi, citing UK and Canadian waiting lists, whereby people look to resolve their issues quicker.

A further factor is the baby boomer generation that is reaching retirement and looking for cheaper medical bills.

Even insurance companies in the US are sending people abroad for treatment, with a recent survey finding 39% of US citizens would travel out of the US to a destination for medical treatments if it gave equivalent care at half the US cost.

“It’s a big cake and everyone wants a big piece,” Dr Jagyasi said.

“Outside foreign money coming into a country creates opportunities for airline, hotels and tour operators.”

Tourism Authority of Thailand (TAT) board of directors chairperson Weerasak Kowsurat claimed 79% of the Middle East market was travelling to Thailand for medical tourism.

“It’s a very interesting trend and soon enough we will see Middle Eastern families staying in resorts where nurses will come and check their blood pressure and before they leave the country they’ll get their medical checkup,” he said. “We’re combining fun with medical services.”

Kowsurat said because of the volume of medical tourism traffic originating from the Middle East, authorities were in discussion with restaurants, spas and amusement parks to cater to the Middle East guest.

“The national hospitals, set up by the private sector, have done so well. At the drop of a hat, a lot of Middle Easterners are queuing in line for the doctors and hospitals have responded to that,” he said.

“We think the facilities and services are excellent and when you go to a hospital elsewhere, you don’t get the leisure side at the same time.”

Other destinations would probably argue with Kowsurat’s statement, and there are certainly a number of countries looking to establish their own presence on the medical tourism map.

South Korea is one such destination, with its government allowing hospitals to directly market and attract foreign patients — a practice that was until now illegal.

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