As health and wellness tourism becomes a growing trend worldwide, what are the region’s players doing to grab a slice of this lucrative market?
SINGAPORE – KEEPING THE GLOW
The Lion City is a bright point in South-east Asia’s medical tourism scene but complacency could see that position under threat from developing neighbours.
A Health Outcomes and Spending Index by The Economist Intelligence Unit – which weighs population health against healthcare spending in 166 countries – placed Singapore second internationally, coming after Japan.
However, Beng Teck Liang, CEO of Singapore Medical Group (SMG), said: “The key challenge with medical tourism is (developing) markets are catching up with Singapore in standards and quality of healthcare. It could be a matter of five to 10 years. For Singapore to remain the preferred choice for medical tourism, we have to innovate to stay ahead in the industry.”
“Complex diagnosis that are surgical and oncology related have higher proportions of medical tourists,”
he observed, but added that SMG is seeing a gradual increase in tourists asking for cosmetic and aesthetic treatments.
Likewise, Raffles Hospital deputy director for hospital marketing, Foo Min Meng, said: “Developing countries are increasing healthcare spending, giving patients more reasons to remain in their country for simple medical procedures.”
He also said that the lack of nurses and doctors continues to affect healthcare organisations globally. “Even if healthcare organisations would like to grow business at a faster rate, we are constrained by the availability of manpower.” Foreigners make up 30 per cent of the hospital’s patient numbers.
The bulk of the foreigners seeking healthcare services in Singapore in 2011 are Indonesians and Malaysians respectively, with growing numbers emerging from Bangladesh, Vietnam and Myanmar.
MALAYSIA – MORE PROMOTION NEEDED
Eager to attract medical tourists, Malaysia has been ramping up its infrastructure in pursuit of this segment.
The Malaysia Healthcare Travel Council (MHTC) has introduced concierge and lounge services at the Kuala Lumpur and Penang international airports in the last two years. The service is integrated with the MHTC Careline, a hotline medical tourists can use for enquiries and assistance with appointment booking.
Healthcare service provider Ramsay Sime Darby Health Care is also set to open Mediplex at its Subang Jaya Medical Centre in Selangor state in February 2015. As the country’s first purpose-built healthcare and retail complex, it will offer preventive medicine and cosmetic procedures and, by 2016, feature accommodation for outpatient and foreign patients.
However, despite the greater attention given to the medical tourism segment, Malaysia continues to suffer from a lack of awareness by potential customers.
Azizan Noordin, Tourism Malaysia deputy director-general (promotion), said one challenge is the lack of awareness internationally of Malaysia’s medical facilities. The NTO thus regularly invites overseas hospital administrators, travel consultants and media for fam trips.
Rafeah Ariffin, senior general manager, group marketing & corporate communications at KPJ Healthcare, said: “The government should do more to promote Malaysia as a medical tourism destination as awareness is lacking in this area.”
Ramsay Sime Darby Health Care’s director, strategic marketing, branding & communications – Malaysia, Edgar Toral, added: “Another challenge is competition from countries that have been in this space longer than Malaysia, (plus) the delay in getting visa renewals for medical tourists who require follow-up treatments.”
INDONESIA – MORE OUTFLOW THAN INFLOW
Better known as a source of healthcare travellers, Indonesia is just beginning to invest in its medical tourism sector.
The Ministry of Tourism has identified 16 target markets for this niche, including Singapore, Malaysia and Australia as primary sources.
However, Fitriana Dosun, head of marketing, BIMC Siloam Hospitals Group Bali, said the medical tourism sector in Indonesia is “nascent” compared with neighbouring Thailand and Malaysia.
BIMC Hospital Nusa Dua, part of BIMC Siloam Hospitals Group, receives online enquiries daily from international markets. “But it’s our close proximity to Australia, a country well known for high medical costs and long waiting periods for treatments, that is our biggest market, especially since we have invested in Australian Council on Healthcare Standards accreditation,” said Fitriana.
The hospital is also equipped with an Australian-standard surgical theatre and has “laid the initial groundwork with our Australian counterparts to bring Australian plastic surgeons to Bali with their patients”. It is also offering plastic surgery by leading Indonesian surgeons at a more affordable price.
Indonesia could also leverage its strength in wellness. “Bali will become a destination for surgery and convalescence at any of its after-care resorts,” said Fitriana.
However, few hospitals in Indonesia understand and are investing in medical tourism, noted Akhyaruddin, director of MICE and special interest tourism development, directorate general of destination development, Ministry of Tourism.
Akhyaruddin also pointed to the lack of a hospitality mindset among doctors in Indonesia, where patients have to wait for a long time to receive treatment.
THAILAND – A LONG-STANDING PROPONENT
A leading medical tourism hub in the region, Thailand attracts more than 2.5 million health and wellness travellers to generate 140 billion baht (US$4.3 billion) a year.
Japan remains Thailand’s top source market for medical tourists, followed by the US, the UK, the GCC and Australia, according to the most recent official statistics published in 2013, although the US and UK have moved up the leaderboard ahead of the Middle East over the past few years.
It is not hard to see how Thailand, already known for its attentive service and hospitality standards, reigns in this market. The kingdom currently has 37 hospitals accredited by the Joint Commission International (JCI) certification, and Bumrungrad International Hospital was ranked among the world’s best hospitals in 2014 by the Medical Travel Quality Alliance.
Wellness is also a core growth area for Thailand’s tourism. The country has a large spa and wellness sectors, which forms the backbone of the alternative health segment. About 80 per cent of guests are foreign tourists. With some 1,400 spas, and an annual sectoral growth of five to six per cent, the Tourism Authority of Thailand (TAT) anticipates this market segment will grow from contributing 16 billion baht a year to as much as 50 billion within the next five years.
A TAT study has revealed that patients stay up to three days for dermatology treatments and medical check-ups, three weeks for plastic surgery, and from one to six months for more extensive medical treatments.
Meanwhile, travellers visiting the kingdom for plastic surgery spend about 130,000 baht per person, with the treatment accounting for 40 per cent of expenditure. Those coming for dermatology treatments over the weekend, especially from Hong Kong and Singapore, spend about 20,000 baht to 35,000 baht.
To seize the opportunities presented by the sector, TAT has rolled out a number of strategies to promote the health and wellness market under its 2015 Discover Thainess campaign. The NTO plans to strengthen the country’s positioning as the rehabilitation destination of choice for the Middle Easterners; for rehabilitation, wellness and beauty treatments for the European market, medical check-ups, beauty treatments and dental work for Asians; and wellness and medical check-ups for visitors from the US.
However, intense competition from other countries presents a key challenge. Thailand, Singapore and India account for 90 per cent of Asia’s medical tourism market, according to MyMedHoliday.com. While that builds the region’s overall appeal within the global market, it also increases competition within Asia.
This article was first published in TTG Asia, January 16, 2015 issue, on page 11. To read more, please view our digital edition or click here to subscribe.
Additional reporting from Paige Lee Pei Qi, S Puvaneswary and Greg Lowe
