Medical Tourism Industry Valued at $439B; Poised for 25% Year-Over-Year Growth by 2025

In a just released report issued by VISA and Oxford Economics, the Medical Tourism industry was valued at a staggering USD 439 billion, with a projected growth rate of up to 25% year-over-year for the next 10 years as an estimated three to four percent of the world’s population will travel internationally for healthcare and health-related treatment.

For years the medical travel industry seemed undervalued, yet VISA’s report accounts for growth factors – like some 340 new international airports over the next decade – and the medical travel market could soar to an astronomical USD 3 trillion by 2025.

In its just-released 2016 report, industry-leading journal, Medical Tourism Index™ (MTI), listed the top 41 destinations for those seeking value-added services and high quality of healthcare across the globe. In it, the similar pattern of global growth emerges: that the United States leads in terms of market share of healthcare travel spending, but Asia’s Thailand, Singapore and South Korea continue to thrive. Both VISA’s and MTI’s™ findings expect China to overtake the US spot within the next 10 years due to the population’s demand for higher quality of care.

The findings don’t just span the global spectrum but also the age spectrum as well; VISA expects 13 percent of all international travel by 2025 to be older travelers. Meanwhile, a recent survey of 31,000 18-34 year olds from 134 countries by popular booking site TopDeck Travel found that some 88% of them travel internationally between 1 to 3 times annually and that the number only continues to grow.

“The borders to quality healthcare access have begun to dissintegrate.” MTI™ Co-Authors, Renée-Marie Stephano, JD President of the Medical Tourism Association and Marc Fetscherin, Associate Professor of International Business and Marketing at Rollins College, said a joint statement. “Speculation about the medical tourism industry as a ‘phenomenon’ is over. This report and the rankings of the the Medical Tourism Index™ provide a unique opportunity for investors seeking new ventures to make smart choices in destinations driving patient travel.”

The entire medical tourism and health tourism industry will descend upon Washington, D.C., September 25-28, 2016 for the 9thWorld Medical Tourism & Global Healthcare Congress. Over 3,000 attendees from 50+ countries brought USD 1 billion in new deals last year paving the way for leaders this year to catch the next wave in partnerships and medical tourism investment.

In a conclusion, VISA said, “We believe that medical tourism is primed for accelerated growth as more of these travelers seek new treatments, as well as lower cost or higher-quality care not available in their home country.”

Medical Tourism Magazine

Singapore - OCBC Report: Public hospitals may not cope with patients surge in 2030

Public hospitals will not hit targets in terms of facilities and manpower when hospital admissions are projected to skyrocket to 791,000 patients per annum from the year 2030. An OCBC report which made this prediction said that in the past 5 years, public hospitals have only added an average of 188 beds per year.

The report further added that “public hospitals need an additional c.6,000 beds by 2030, which is approximately 440 beds per year,” and that, current private hospitals have the capacity to add 500 beds with existing licensed beds capacity, which is approximately half of the c.1,000 beds required by 2030.

“Based on the Healthcare 2020 Masterplan, the addition of 1,900 beds coming mainly from the newly completed Ng Teng Fong Hospital (~700 beds yet to be included in the current operational number of beds) and Sengkang General Hospital (1,000 beds to be completed by 2018) represents only a quarter of the total number of beds required by 2030,” OCBC said.

OCBC noted that the government has four acute hospitals in the pipeline subject to review in 2020.

“While it may be easier to add ‘brick and mortar’ i.e. medical facilities, it is more challenging to build manpower in the near-to-medium term especially specialised doctors. The number of new physicians needed by 2030 is around 6000 physicians, or 371 physicians per year,” the report said.

“From historical trends, Singapore has been able to add an average of 677 physicians per year, double the number required per year. The increase is typically drawn from around 300 doctors who are Singapore residents, and 300 to 350 non-resident doctors, of which, c.200 are graduates from Singapore’s medical institutions,” the report added.

In a White Paper released in 2013, the Government said that it intends to increase the population of Singapore to 6.9 million by the year 2030.

theindependent

You can find older posts regarding ASEAN politics and economics news at SBC blog, and older posts regarding health and healthcare at IIMS blog. I thank you.

Report: Chinese Tourists to Spend Over $255 Billion Abroad by 2025

China’s outbound tourism boom is expected to remain the largest force in the global travel market over the next decade, with Chinese spending reaching US$255.4 billion by 2025.

This was the prediction of a recent report by economic forecasting firm Oxford Economics and credit card company Visa called “Mapping the Future of Global Travel and Tourism,” which says that this number will be the result of an 86 percent increase in Chinese travel spending in the next 10 years. 

The 2025 prediction will be up from $137 billion spent in 2015, keeping China far at the top of the list as the number one source of cross-border travel spending in the world. 

The staggering amount is expected to be almost double that of the United States’ second-place $134.1 billion spent by tourists abroad and larger than that of Germany, the UK, and Russia combined.

Chinese tourists pose for a photo in Cambodia. (Jing Daily)

The report looks at travel spending by households with incomes over US$20,000 and utilizes Visa payment data as well as Oxford Economics projections, excluding spending on plane tickets. Estimates by previous organizations that include airline ticket purchases have been even higher—a report by the London-based nonprofit World Travel and Tourism Council released in March this year states that Chinese tourists spent a total of $215 billion overseas travel in 2015, while a report by China Luxury Advisors and the Fung Business Intelligence Centre says that overseas travel spending by Chinese tourists actually reached $229 billion last year and will hit $422 billion by 2020.

China is set to make a major contribution to what the report calls the “rising global traveling class” in the developing world over the next decade. These rising middle-class households from emerging markets are expected to take up 45 percent of $1.5 trillion that will be spent on cross-border tourism by 2025. The total number of Chinese travelers heading abroad is set to hit 242 million by 2024, according to previous projections by HSBC.

The report notes that increasing connectivity from new flights and airports will be a major factor in the growth of global tourism spending, and travelers will be savvier than ever thanks to the the rise of online travel platforms and access to customer reviews.

Medical tourism will also be a key trend for the future of the international travel industry, especially in the case of travelers over 65. Thanks to a mistrust of doctors in China as well as rising Chinese demand for plastic surgery and “maternity tourism,” Chinese outbound medical tourism has been growing as travelers head to places such as South Korea, Japan, Europe, or the United States.

The report notes that there are risks to the future of Chinese travel, however, as China’s economy remains on shaky ground. It points out that China’s stock market has lost over a third of its value, stating that “the fall-out from a loss in confidence about the economy can make travelers more reticent about taking a vacation and less likely to go.” In addition, yuan devaluation makes it more expensive for Chinese tourists to travel abroad and can dampen spending.

Nonetheless, the report points out that despite economic turmoil, Chinese tourism appears to be better able to weather these challenges better than counterparts Brazil and Russia, which have been seeing decreased travel spending. The report’s prediction of continued future growth is based on the fact that even as China’s economy slowed in 2015, Chinese international travel spending grew by an estimated 13 percent.

Jing Daily

ASEAN - Supporting ASEAN’s 2025 vision

Southeast Asia’s progress in the nearly half a century since ASEAN was founded has been nothing short of amazing.

If ASEAN were one economy, today it would be the world’s seventh largest. Indonesia, the region’s largest economy, is helping drive growth as it ramps up investment in infrastructure and steps up efforts to spur private investment.

Despite ASEAN’s impressive progress to date, the region will be facing very different and increasingly complex challenges moving forward, necessitating new approaches to ensure continued growth and prosperity.

ASEAN’s vision for 2025 is for a more equitable and competitive region. To achieve this, progress needs to occur on several fronts over the next decade, including better infrastructure connections between the region’s countries and a renewed focus on the health and welfare of its people as well as on the natural environment.

Over the next decade, according to a new publication, “ASEAN-ADB Cooperation Toward the ASEAN Community”, tapping support in six key areas will help the region to realize its vision.

The first priority is physical connectivity. Connecting markets and propelling future growth by upgrading parts of the ASEAN Highway Network, especially in Myanmar, promotes multimodal transport, ensures greater energy security through cross-border power interconnection and trade and boosts the use of indigenous, low-carbon and renewable energy resources.

Second, facilitating smoother trade and transport links makes it easier for goods and people to cross borders by expanding traffic rights to allow more vehicles to move across borders. It also enhances coordination between customs and other border agencies through single windows that allow traders to satisfy all regulatory requirements electronically at the same time.

Monetary and financial cooperation and integration is the third priority. This strengthens financial systems and attracts more investment by ensuring prudent macroeconomic management and developing regional bond and equity markets.

Social development, the fourth key area, empowers investments in the region’s most valuable resource — its people. It includes support for more effective communicable disease control, as well as for greater labor mobility to expand job opportunities.

Food security is another important public good. It can be delivered by measures to protect public health, and by collaborating across ASEAN to promote food security initiatives including the harmonization of food safety systems and standards.

Finally, through environmental sustainability we can help to mitigate the negative effects of integration by managing critical ecosystems and biodiversity corridors. This also supports climate change adaptation and mitigation.

Greater efforts are needed to promote private investments and public-private partnerships in the region, to further spur economic growth and job creation. Over the past 50 years, cooperation between Asian Development Bank (ADB) and ASEAN has progressively taken shape and in recent years ADB financing and assistance has significantly grown. From 2006 through 2015, ADB financed 376 projects worth US$15.4 billion that directly support ASEAN integration.

The ASEAN Leaders’ vision is of a peaceful, stable and resilient and outward looking community with enhanced capacity to respond effectively to challenges. It also envisions vibrant, sustainable, highly integrated and better connected economies, as well as renewed efforts to narrow development gaps.

The ingredients for success are already in place; a population of over 620 million people, a potential market larger than the European Union or North America, the world’s third largest labor force and a strategic location between Asia’s two economic giants — India and China.

The region needs to leverage these natural advantages through more connective infrastructure, improved life opportunities for its people, and a sharpened focus on environmental sustainability that includes measures to address the impacts of climate change.

ASEAN can already be considered the world’s most successful grouping of developing countries. By redoubling its efforts on new and remaining challenges, it can deliver an even better future for its people.

Alfredo Perdiguero

The writer is principal regional cooperation specialist at ADB’s Southeast Asia Regional Department.

The Jakarta Post

Vietnam - Vietnam targets 90 percent insurance health card holders by 2020

The percentage of people having health insurance must be over 90 percent by 2020 because taking care of people’s health is one of the most important things in stabilizing social security, said Prime Minister Nguyen Xuan Phuc at a national online conference on June 3rd.

Accordingly the health sector and related agencies must concentrate carrying out their work to reach the target.

PM Phuc said that during 25 year implementation of health insurance policy, the health sector and other sectors have made much efforts resulting in 76 percent of population having health insurance.

The goverment wants the rate of health cardholders makes up 90 perc so that all residents can benefit the social welfare especially the poor.

Director of the Vietnam Social Insurance Nguyen Thi Minh said that in 2015 the sector made concerted effort to increase the health insurance coverage rate to 76.5 percent of the total population in 2014 and will be over 78 percent this year.

Ms. Minh petitioned to the PM that the PM should approved the sector to expand its network even mobilizing enterprises, medical clinics and post offices to sell health insurance in a bid to facilitate people’s purchasing health insurance to early finish the coverage target of 90 percent of the total population. If people buy health insurance in family, members could buy insurance in different time and they enjoy reduction since teh second member buy it.

Ms. Minh also asked the Ministry of Health to improve medical quality to attract more participation as well as to have clear road map for price hike of medical services. The Ministry of Defense and the Ministry of Public Security should encourage more soldiers to buy health insurance in 2017.

Furthermore, the Ministry of Fiance should balance the budget in order to raise support for families whose economic condition is nearly poverty line; families that work in agri-fisheries- forestry sector with average living condition and students. The Ministry of Education and Training must encourage students to participate in health insurance in 2017.

In addition, leaders in cities and provinces should consider increasing health insurance buyers is one of annual socio-economic growth quota. Health insurance is compulsory under Vietnamese law - having health insurance is in everyone’s best interests and is everyone’s responsibility.

Ms. Minh said that the Vietnam Social Insurance Company has calculated detailed support for members of families whose economic condition is near poverty line and low-income families. As per the plan, in 2016 the government should allocate VND450 billion (US$20,080,321) while currently the balance in localities is around VND200 billion the rest should be taken from the state budget.

Health Minister Nguyen Thi Kim Tien said that the health sector has improved quality, reducing the overloading in hospitals, as well as issue penalties on medical workers whose behaviors is not good to patients ; total medical insurance spending in 2012 is VND31,100 billion, it increased to VND41,100 billion in 2014  and VND50 trillion in 2015 proving that health insurance holder access to more medical services, said Ms. Tien.

Yet the target of 90 percent health insurance coverage b 2020 is a real challenge; accordingly measures should be applied especially in these province with udner 70 percent.

Deputy PM Vu Duc Dam said that to expand the medical insurance coverage the health sector must improve examination and treatment quality more and no more discrimination between insurance card holders and others requiring paid medical services. The government will continue giving financial support to low-income families, children, farmers and fishermen. Not only giving financial aid to poor farmers, fishermen, and families at closely poverty line but the government should also give support to those who first buy insurance so that people get used to buying medical insurance, said Mr. Dam.

Representatives from Ho Chi Minh City, the northern city of Hai Phong, Hanoi and the southern province of Dong Nai all said that health sector must raise quality more to attract medical insurance participants. Additionally Hanoi representative proposed raising support for students who currently enjoy 30 percent support in buying health insurance and those who buy in family.

Phan Thao

saigon-gpdaily

Medical Tourism in Thailand

In health care sectors and tourism of Thailand, medical tourism is a ever growing concept.

According to an investigation the country had earned a revenue of 36.4 billion baht in the year 2006. The investigators told that one Bangkok hospital took in 150,000 treatment seekers from abroad in the year 2005. Certainly it makes a country rich when it earns revenue from people outside their own country. So every country try their best to provide with world class facilities while treating foreign people.

India and Thailand are the two nations which are well known for their awesome hospitality while treating people from abroad. Thailand is a country of peace and provide everything from organ transplants to cardiac surgery at a price much lower than the US or Europe and they do this in a safe and clean environment. People from western countries dont get much care when they are admitted to local hospitals while foreigners getting treatment from Thailand hospitals get more personalized and higher level of nursing. One may say this is quite natural as when you get more money, you care more. Treating patients from abroad fetch more money to Thailand government than the local community of Thailand. As a result medical tourism facilites are growing to proffessional level in Thailand. Infact all developing countires would like this medical tourism concept.

According to one patient who went for a coronary artery bypass surgery in Bumrungrad International hospital in Bangkok(Thailand), it just cost him $12,000 as opposed to the $100,000 (68,000 euros) he estimated the operation would have cost him at home. Some other Asians also think that hosiptals are also a popular destinations for them. A group of Hospitals in Thailand better known as ‘Phyathai Hospitals Group’ has staff comprising of medical experts in 23 languages other than the English speaking medical staff that caters to medical tourists. One of the Bangkok Hospital has a Japanese wing also. In 2006 When Nepal Prime Minister Girija Prasad Koirala needed medical care, he went to Bangkok.

There is another very popular Thai hospital known by the name Bumrungrad International. In 2005 this hospital was awarded and accredited for ensuring an international standard of medical services. Most of the doctors and medical staff in this hospital have got the training from UK, Europe and the US and many Thai physicians hold US or UK professional certification. Perhaps the most advanced and internationalized of Thailand’s private hospital. Coming here can seem like a visit to a five star hotel and the United Nations all in one. Although comparatively expensive for Thais, the hospital gets many foreign visitors in search of high quality health care at reasonable cost as a part of their medical tourism.

Today several Thai hospitals have relationships with educational facilities in the US and UK (for example, Sheffield Hallam University has links with Bangkok}. The US Consular information sheet gives the Thai health care system high marks for quality, particularly facilities in Bangkok, although the World Health Organization ranks the Thai healthcare system at number 47, which is below the USA’s ranking at 37 and the United Kingdom’s ranking at 18. The UK’s Foreign and Commonwealth Office web site states “There are excellent international hospitals in Bangkok but they can be expensive”.

While a very small percentage of Thai are internationally accredited, there are a growing number of hospitals with Joint Commission accreditation. Again, international hospital accreditation may be one way for hospitals to demonstrate their worth, and increasingly Thai hospitals competing for business in this sector may need to expand their international accreditation, including looking towards other international healthcare accreditation schemes sourced outwith of the US, to augment their appeal if they are to remain competitive.

by Radha Kishan

asiantraveltour

Korea as global tourism destination

International tourism has rapidly expanded over the past 60 years to become one of the fastest growing sectors of the world economy. The year 2015 was yet another record-breaking year for global tourism.

The U.N. World Tourism Organization (UNWTO) reported that international tourist arrivals grew by 4.4 percent in 2015 to reach a whopping 1,184 million. The total impact of the tourism sector on the world economy in 2014 was approximately $7,580 billion, or 9.8 percent of world GDP. As the economic outlook for the near future remains bleak, the robust performance of the tourism sector provides the global economy with much-needed vitality and thus greatly contributes to worldwide economic growth and job creation.

Reflecting the worldwide trend, Korea's tourism industry has experienced a boom of its own in recent years. Between 2009 and 2014, the number of foreign visitors nearly doubled from 7.8 million to 14.2 million. The impact of the thriving tourism industry on the Korean economy is palpable. In 2015, the travel and tourism sector made up 5.1percent of national GDP and directly generated 561,000 jobs, or 2.2 percent of total employment.

In spite of the rapid rise of inbound tourists, Korea still lags far behind other Asia-Pacific countries. Compared to Korea's 14.2 million visitors (2014), Hong Kong drew 27.8 million arrivals while Thailand and Singapore registered 24.8 million and 15 million visitors each. As a whole, the Asia-Pacific region recorded a year-on-year increase of 13 million international tourists in 2015, reaching a total of 277 million visitors.

Worryingly, international visitors to Korea declined for the first time in 12 years in 2015. This slump was mostly due to the outbreak of the Middle East Respiratory Syndrome (MERS) _ the massive cancellations of flights and hotels in June and July of last year were a hard hit for tourism-related revenues. Although the sector has bounced back relatively fast, it is clear that the domestic tourism industry is vulnerable to external conditions such as the deteriorating global economic situation, the slowing of the Chinese economy, the spread of epidemics, and the increasingly fierce competition with other travel destinations in the region.

The growth potential for Korea's tourism sector is still very high, and there are many initiatives that could help put Korea more firmly on the map of international destinations. Creating a more diverse range of tourism programs, boosting Korea's advantage as a business and leisure travel destination, and promoting niche sectors such as medical tourism are some of the steps that might enhance Korea's competitiveness.

For one, the Korean tourism sector should make an effort to develop differentiated tourism products that attract repeat-visitors with diverse needs and expectations. A standard sightseeing program focusing on shopping and gastronomy in cosmopolitan Seoul? This will definitely be attractive for, say, a group of young female tourists in their 20s and 30s. But what about other types of travelers, such as senior citizens who prioritize rest, intrepid adventure travelers seeking new challenges, or families with children who would prefer a farm holiday close to nature? A well-focused effort on developing a wide range of tourism programs will strengthen the base of Korea's tourism industry. Additionally, it may help to attract more tourists in the low winter season, and encourage more visits to the heretofore rather than neglected provinces and small towns.

Another field of strategic growth potential is the meeting, incentives, conventions and exhibitions/events industry. Since the late 2000s, the Korean government has actively pursued a policy of promoting this industry by hosting a variety of international events and supporting the growth of the sector. In 2014, 636 international meetings were held in Korea, thus making it the fourth hosting country for these kinds of events according to the Union of International Associations. Korea's superb transport infrastructure, world-class readiness, and high-quality cultural resources all make it a very competitive destination for today's business travelers. Nowadays, a rising segment of business travelers have flexible schedules and thus look to add leisure days onto business trips. Offering this group just the right mix of business and leisure could considerably boost tourism revenues.

Recently, Korea has also experienced rapid growth in medical tourism, a fast-expanding sector with a continuous and significant growth potential. Ever-longer life expectancy, rising healthcare costs in developed countries, and globalization of modern medicine all contribute to the rise of patients willing to travel for healthcare. In the case of Korea, what initially started with cosmetic surgery driven by the K-wave boom has now expanded into a wide range of medical procedures. The potential for further growth is still high in Korea, given the world-class quality and price competitiveness of domestic medical care. The government can further boost the medical tourism market by promoting innovation in the medical industry, strengthening the legal framework for practices in medical tourism, and attracting more foreign investment in medical infrastructure.

Without a question, today's tourism industry is an economic powerhouse that acts as a major driving force for economic development. In these times of economic uncertainty and high unemployment, the Korean government should take the necessary steps to create a strong high value-added tourism industry by maximizing the country's cultural and natural resources and creating new resources by innovation. The implementation of a coherent long-term growth strategy for tourism, together with a strong drive to improve cultural contents such as K-pop, TV series and movies, will go a long way toward consolidating Korea's status as a global destination.

By Park Hee-kwon

Park Hee-kwon is ambassador to the Kingdom of Spain and Permanent Representative to the United Nations World Tourism Organization (UNWTO).

koreatimes