TTG Asia
Asia/Singapore Tuesday, 16th December 2025
Page 2074

Seeing the doctor

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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?

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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.

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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.”

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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.

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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.

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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

Fairmont bags management agreement for Wuhan property

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THE Fairmont brand will gain another foothold in the massive China market with the opening of Fairmont Wuhan in 2017.

Fairmont Wuhan forms part of a mixed-use development in the Wuhan CBD and the area is served by the Hankou Railway Station, major metro lines and the Wuhan Tianhe International Airport.

Jennifer Fox, president, FRHI International and Fairmont brand, said in a release: “Wuhan’s position as a base for industry, as well as being the financial, educational and transportation hub of Central China, makes it an ideal location to develop a luxury hotel. We look forward to being a key part of the city’s continued growth.”

The 350-key hotel will offer four dining outlets, 2,500m2 in event space, Fairmont’s signature Willow Stream Spa, and fitness facilities such as a swimming pool.

Narita’s LCC terminal to commence operations in April

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WORK on a new terminal for LCCs at Tokyo’s Narita Airport is close to completion and the facility is on schedule to open on April 8.

Three airlines – Jetstar Japan, Vanilla Air and Spring Airlines – will be based in Terminal 3, which will have 24-hour convenience stores and an extensive food court, said airport officials.

On the downside, the new facility is 500m from Terminal 2 and a 15-minute walk from the nearest train station. A shuttle bus will operate between the two terminals.

There are suggestions that the LCCs are not entirely happy with operations at Narita, which is subject to a night-flight curfew because of the proximity of local communities. The new terminal is not exempt.

“This is one of the fundamental problems with Narita and it is more serious for LCCs because they like to operate late at night or early in the morning,” Geoffrey Tudor, an analyst for Japan Aviation Management Research, told TTG Asia e-Daily.

One key local LCC, Peach Aviation, has opted to remain with its present slot in Terminal 1.

Japan’s aviation stakeholders are hoping that the new terminal will serve as an additional gateway for foreign tourists coming to a country that has set a target of attracting 20 million visitors a year by 2020.

“(Foreign) inbound demand is already increasing rapidly, in part because of the fall in the value of the yen against other currencies, and (LCCs are) hoping to take advantage of that,” said Tudor.

Malaysia declares visa fee waiver for Chinese tourists

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LESS than two months to the first anniversary of the disappearance of Malaysia Airlines’ Beijing-bound flight MH370, Malaysia’s prime minister has announced a waiver of visa fees for Chinese nationals to boost the country’s competitiveness in attracting Chinese tourists.

According to the New Straits Times today, home minister Ahmad Zahid Hamidi said the implementation date for the move would be made known today at the cabinet meeting.

He was quoted as having said that visas still needed to be issued for national security purposes: “Although we want to draw tourists to our shores, we cannot compromise on security.”

In an earlier press conference this month with the minister of tourism and culture, Mohamed Nazri Abdul Aziz, Ahmad Zahid said that Malaysia had lost 540,000 tourists from China last year and tourism arrivals in 2014 may not reach the targeted 28 million as a result.

Malaysian inbound operators handling the Chinese market had reported many Chinese group tour cancellations in the immediate aftermath of MH370.

Switzerland Tourism tries to swim with the currency

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SWITZERLAND Tourism is bracing itself for the impact of the revaluation of the Swiss franc, which has made the destination even more expensive for its traditional European markets.

The dark clouds could prove beneficial, however, to the Asian market that can expect Switzerland Tourism and Swiss hotels to court it ever more earnestly.

Urs Eberhard, executive vice president-markets & meetings, Switzerland Tourism, has confirmed the NTO “will shift even more attention to Asia, where the interest in the assets of Switzerland is unbroken, where we still rank among the most preferred destination worldwide, and where the euro/franc exchange rate plays a less important role”.

It will also continue to develop new source markets for Switzerland.

“In the short-term, if the franc remains strong, we can expect an impact on bookings from nearby markets,” Eberhard told TTG Asia e-Daily.

“The worst problem is the fluctuation and the uncertainty of not knowing what the exchange rate is at the time of booking of the vacation. People can eventually cope with an exchange rate but not with a constant up and down. This could lead to a cautious attitude and temporary stop in bookings,” he said.

David Painter, CEO of Kuoni Group Travel Experts (GTE), believes the Asian market will remain strong.

“With a weakening euro against many Asian currencies, we will continue to see our Asian customers travelling throughout Europe,” said Painter.

“Before this issue, many in the industry were increasingly looking towards Asia but we are fortunate to already have market leading positions there and – under the new Kuoni strategic direction – will be investing even more to secure it.”

Kuoni GTE booked over 2.5 million room nights last year all across Europe from Asia, with a majority of the bookings being multi-destination trips.

Switzerland Tourism, which has launched the Grand Tour of Switzerland initiative, will focus even more on getting Asians to spend all or most of their time in the country rather than on a multi-country European itinerary.

Eberhard said: “We have to focus even more on selling the unique assets of Switzerland as a travel and conference destination – the nature, boutique towns, crystal-clear lakes and rivers, infrastructure, outdoor paradise, safety, many languages spoken, incredible diversity in such a small space, our public transportation system, and more.”

Kenya in pursuit of more Indian tourists to make up for Ebola shortfall

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AFTER registering a five per cent decline in tourist arrivals from India last year, the Kenya Tourism Board (KTB) is pulling out the stops to regain traction in this top-five market.

“Last year we saw a decline in arrival figures mainly due to the Ebola scare, general elections in India and the terrorist attacks the country faced. Our main focus for 2015 is to recover from the negative growth,” said Muriithi Ndegwa, managing director, KTB.

At present VFR, families and culture are the dominant segments for Indian travellers, and KTB wants to diversify to other segments such as honeymooners, DINKS, youth and MICE in the coming years.

“Our focus this year is to promote destinations like Maasai Mara, Amboseli and Lake Nakuru, which are known in India. However, as we go ahead we will educate travellers about a lot of other game parks and national reserves like Shaba National Reserve and Ruma National Park,” said Ndegwa.

The NTO has planned roadshows in Chandigarh, Bengaluru and Ahmedabad this March with participation from 10 Kenyan suppliers. Kenya is a partner country at the India International Film Tourism Conclave next month, and will take prominent film producers on a fam trip.

“We plan to launch a consumer campaign later this year and utilise social media to increase Indian tourist traffic to Kenya,” added Ndegwa. “We believe we are still scratching the surface…Our target is to welcome 100,000 Indian tourist arrivals in the next two to three years, which will push India into our top three source markets.”

Kenya recorded about 65,000 Indian tourist arrivals in 2013.

Kenya Airways, which currently operates daily flights between Mumbai and Nairobi, is mulling doubling the frequency on the route.

Travel trade sees red over new green tax in the Maldives

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THE Maldives is imposing a green tax of US$6 per bed on tourists from November 2015, drawing concern that the country could soon become an overpriced destination.

Tourism minister Ahmed Adheeb told the local media that the new tax is aimed at protecting the Maldives’ fragile environment. “Revenue generated from the tax will go into managing the waste from local resorts and other islands,” he said. Guesthouses will be exempt from this tax.

Resort owners and travel companies have often complained of too much taxation on tourism, which provides the bulk of national revenue.

“The green tax will definitely have an impact. (My Chinese tour operator partners are saying) it is already becoming too expensive to go to the top resorts because of all the service charges and taxes,” noted Shafraz Fazley, managing director of Viluxur Holidays.

In July 2014, an airport exit tax of US$25 per person came into effect. While the Maldives discontinued a US$8 tax per bed per night in November last year, GST rose from eight to 12 per cent that same month.

Michelle Flake from Koamas Luxury Escapes, said the green tax is essentially the return of the bed tax in a different guise. “Have a look at the TripAdvisor Forum… I am sure people are moaning and saying it will be too expensive for them to come soon,” she said.

However, Abdulla Ghiyas, president of the Maldives Association for Travel Agents and Tour Operators, believes there will not be much damage. “When the bed tax was waived in November most of the contracts were already done with US$8 in mind. Thus I don’t think this creates any issues.”

Shanghai to get marine life theme park in 2017

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HAVING secured the land use rights for the site, Hong Kong-listed Haichang Holdings is set to begin work on its latest entertainment complex that will come up in Shanghai in 2017.

Shanghai Haichang Polar Ocean World is the theme park operator’s ninth facility and will be built on a 29.7ha piece of land to occupy 19ha in total gross floor area, said Haichang in a press statement.

Blending “entertainment, ecology and the scientific”, the theme park will feature a world-class marine theme park showcasing animals from the North and South Poles, a themed resort hotel, 13 exhibition halls, four animal interaction plazas, four large cinemas, 18 rides, and other entertainment options.

The theme park, situated beside Dishui Lake in Lingang New City, Nahui District, is about a one-and-a-half-hour drive from downtown Shanghai and half an hour from the Pudong International Airport. Shanghai Disney Resort, which opens this year, is also a 30-minute drive away.

Qu Naijie, chairman of Haichang Holdings, said the opening of the theme park would give the company a strategic foothold in East China. “Considering the geographic location of Shanghai, this project will also enable Haichang Holdings to open up the regional markets of East Asia, and eventually step onto the world arena,” he said in a statement.

Haichang has engaged international companies that have participated in Disney and SeaWorld projects to work on the park’s concept development.

Despite the theme park operator’s professed commitment to “world-class” standards, it remains to be seen if travellers, now increasingly aware of issues of animal welfare and conservation, will take the bait.

SeaWorld reported significant losses in earnings and visitor figures last year.

South Korea to green-light 2 more integrated resorts

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AS PART of a plan to attract more tourists, South Korea will approve the construction of two more casino resorts and 5,000 new hotel rooms this year.

According to Reuters, the South Korean government is aiming to increase tourism investment by some 3.5 trillion won or US$3.3 billion.

The integrated resorts and their foreigner-only casinos and will be run by government-appointed operators, each to inject one trillion won each into the resorts by 2H2015.

This is in line with South Korea’s three-year economic plan, said the Reuters report.

Two consortia – comprising Caesars Entertainment and Lippo, and a joint venture of South Korean company Paradise and Japan’s Sega Sammy Holdings respectively – have been given the go-ahead.

More Singaporeans headed overseas for Lunar New Year

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SINGAPOREANS are making use of the long Lunar New Year weekend to travel abroad, with travel consultants anticipating a 20 per cent increase in travel bookings.

The first two days of Singapore’s Lunar New Year, which are public holidays, fall on February 19 and 20, a Thursday and Friday. Travellers are combining this with the weekend to take four-day breaks.

According to local travel agencies, popular destinations at the moment include China, Thailand, Hong Kong, Japan and Australia.

Jane Chang, head of marketing communications, Chan Brothers Travel, said: “We have received bookings for this period from as early as September last year and (sales are) currently 10 per cent higher than for the same time in 2014. We expect to easily surpass 2014’s figures by at least 20 per cent.

“Singaporeans are avid travellers and some religiously plan their holidays in advance, taking into account upcoming long weekends and public holidays,” she said.

NATAS spokesperson, Alvin Lim, predicted a lower level of growth. “We expect outbound travel over the festive period this year to be higher than last year’s by five to 10 per cent. Most long weekends tend to see a surge in travel interest, especially shorthaul trips from three to five days.”

Dynasty Travel director of marketing communications, Alicia Seah, who is expecting bookings to go up by 20 per cent, pointed out that some Singaporeans are taking another three days of leave before the New Year for an even longer holiday.

Seah attributed the rise in travel demand to the strong Singapore dollar as well. As such, she highlighted Europe as a popular longhaul destination Singaporeans are headed for this festive season.