PATIENTS BEYOND

BORDERS:THAILAND THE CRADLE

FOR HEALTH & WELLNESS

GLOBAL MEDICAL TOURISM: THE COST PUSH TREND

In the midst of the rising demand and importance placed on healthcare, it is

predicted that there will be a continuous surge on the industry’s performance.

Based on the 2017 Global Access to Healthcare Index by the Economist Intelligence Unit, several developing countries are ranked ahead of some

developed countries.

Apart from the access to healthcare, the cost is another major contributor to the Medical Tourism Industry. The upward movement of the cost pushes an individual to look for affordable healthcare treatments outside the country. According to the Medical Tourism Index, the top 5 Medical Tourism Destinations are: Canada,

United Kingdom, Israel, Singapore and India for 2016 – 2017.

CHART I: THE TOP-PERFORMING COUNTRIES BASED ON THE GLOBAL ACCESS TO HEALTHCARE INDEX (2017)

CHART II: THE GLOBAL MEDICAL TOURISM, BY REVENUE IN mns (ESTIMATES AS OF MAY 2018)

Source: KPMG

Source: Industry run, Frost & Sullivan

6,000

10 9.1 9 9 8.8 8.8 8.6 8.5 8.4 8.4 8.3 8.3 8 8 7.8 7.7 7.5 7.5 7.5 7.49876543210

South Korea IndiaTurkey Malaysia Rest of the WorldUSA

Nether

lands

Fran

ce

German

y

Austra

liaU.K

.

Canad

aCub

aIta

ly

Japan

Spain U.S.

Brazil

Israe

l

Taiw

an

Thail

and

Columbia

Kazak

hstan

South

Korea

Poland

GermanyThailand U.K. Mexico

5,000

4,000

3,000

2,000

1,000

0

1

*The Overall MTI: covers Country Environment, Destination Attractiveness, Medical Tourism Costs, and Facility & Services**The Country Environment was measured by: stable economy, country image

ASIA PACIFIC AS THE PRIME MEDICAL DESTINATIONCompared to the rest of the world, Southeast Asia’s healthcare market has been rapidly expanding. This trend has been mainly driven by the private sector and medical tourism. Southeast Asia is truly becoming the prime destination for foreign patients who are seeking healthcare treatments outside their countries.

Medical tourism is steadily blossoming among Asian countries particularly Malaysia, Singapore and Thailand as these countries have established themselves as the main centers for ASEAN medical tourism.

Source: The Medical Tourism Index

CHART III: THE TOP 5 MEDICAL TOURISM DESTINATIONS, 2016-2017

RECENT DEVELOPMENTS:

The country is giving a major thrust to the Medical Tourism sector and it is slowly becoming

Singapore’s main rival in this industry. Malaysia Healthcare Travel Council (MHTC) built the Partnership for Healthcare Travel Excellence (PHTE) programme, which aims to measure the healthcare performance for selected medical tourism treatment procedures. This will provide an assessment as to

where Malaysia Healthcare stands in providing healthcare and to identify improvement areas in order to ensure world class quality in patient care delivery.

Malaysia Singapore

According to the Singapore Tourism Board, patients travel to Singapore to ensure that they receive the Advanced Medical Care, ranging from healthcare screenings to high-end surgical procedures (e.g.

Cardiology, neurology, oncology, ophthalmology, organ transplants, orthopedics, and pediatrics).

Singapore’s private healthcare sector is pushing the country’s position to become one of the leading Medical

Tourism destinations in Asia. As travelers no longer focus on just cost-savings, other factors, such as quality (professionals and advanced technologies) and luxury (state of the art, quality service and facilities) are also becoming important determinants in Medical Tourism.

1

CanadaUnited Kingdom

IsraelSingapore

India

72.10

63.26Country Environment**

MTI Overall*73.56

73.26Country Environment**

MTI Overall*73.91

67.56Country Environment**

MTI Overall*74.87

77.3Country Environment**

MTI Overall*76.62

78.69Country Environment**

MTI Overall* 23

45

21

THAILAND PROPELS AS THE TOP MEDICAL TOURISM DESTINATION

According to the Medical Tourism Index (2016-2017), Thailand was ranked 18th in the Global MTI ranking. The key determinants for the ranking were the country’s environment, existing medical tourism industry and

the quality of facilities & services.

According to the International Healthcare Research Center (IHRC), medical tourism is likely to grow 14% annually, aligning with the yearly 12% growth of international tourist arrivals in Thailand.

THAILAND MEDICAL TOURISM LANDSCAPE (2016):

Source: The International Healthcare Research Center (IHRC), Kasikorn Research Center

66.60 6th

25 million

18th

13th 27th

Overall MTI scoreMedical Tourism

Industry

tourists registered each year

Global Ranking

destination attractiveness

Qualityof facilities

and services

3

Apart from the growing tourism in Thailand, the affordability of the medical procedures sets the country as one of the top choice for Medical Tourism and Wellness. Some of the common procedures are dental implants,

cosmetic surgery, laser treatments and medical spas. Thailand’s popularity continues to rise due to the fact that patients feel pampered, high technology procedure that is way cheaper than in other countries.

Source: Medical Tourism

IMPACT OF MEDICAL TOURISM IN THAILAND HEALTHCARE SYSTEM:

CHART IV: AVERAGE PRICE COMPARISON OF MEDICAL PROCEDURES IN U.S., SINGAPORE AND THAILAND (2018)

Source: Industry Reports, Frost & Sullivan

Key Factors to Consider:

Overall Evaluation

ThailandSingaporeU.S.

Coronary Angioplasty $28,200 $13,500 $4,200

Hysterectomy $15,400 $10,400 $3,650

Hip Replacement $40,300 $12,000 $17,000

Dental Implant $2,500 $2,700 $1,720

Heart Bypass $123,000 $17,200 $15,000

LASIK $4,000 $3,800 $2,310

Gastric Bypass $25,000 $13,700 $16,800

Breast Augmentation $6,400 $8,400 $3,500

Positives

Negatives

Health Infrastructure capacity addition and utilisation of hospital services

Overall image perception of Thailand as a high-quality medical tourism destination

Private hospital capacity, as a segment, has in fact declined

Majority of in-patient capacity in the private serves foreign patients

Barring arrangements (e.g. for civil servants) private hospitals remain out of reach for Thai people

Causes health personnel shortage

Adoption of latest technologies & treatment practices, albeit in select areas

Other benefits (e.g. indirect employment generation) that may have accrued are not studied

Best Practices to improve treatment outcomes & treat complex diseases

Overall impact on the health system (finances, personnel, care delivery)

Training & development of medical professionals

Price treatment

3 4

THAI GOVERNMENT INITIATIVESIn an effort to promote Medical Tourism in the country, the government is taking steps to make the country a better destination for tourists. The Tourism Authority of Thailand (TAT) together with the Thai Government

provided these measures:

• The Thai government extended the stay from 30 days to 90 days for medical tourists from:

○ China ○ CMLV (Cambodia, Laos, Myanmar & Vietnam)

• Long-stay visa of up to 10 years can be applied by citizens (applicable for spouses and children up to 20 years of age from:

○ Australia, Canada, Denmark, Germany, Finland, France, Italy, Japan, Netherlands, Norway, Sweden, Switzerland, U.K. and U.S. ○ Permission will initially be extended for 5 years and then an additional 5 years (based on certain criteria and conditions)

DETAILS:

DETAILS:

• Launched in January 2018• Grants 4 year stay to investors and

highly skilled professionals working in 10 specialised fields

○ Fields identified by the government as part of Thailand 4.0 plan

• Targeted at entrepreneurs investing in new businesses, highly-skilled professionals, high level executives, and start-up business owners

• Benefits & Privileges:1. Four-year visa2. No work permit required3. Dependents (spouse, children)

same privilege4. Annual notification reporting

instead of the usual 90-day reporting

Source: KPMG

VISA

EXTENSION

SMART VISASCHEME

GOVERNMENT MEASURES

5

BENEFITS FOR MICE STAKEHOLDERS IN THAILAND

The imminent rise of tourism in Thailand coupled with the looming popularity of medical and wellness sector are key factors indicative of the progressive state of Medical Tourism and Wellness sector of the country.

The MICE stakeholders must consider promoting Thailand in terms of the affordability of the medical procedures compared to other countries.

MICE stakeholders in Thailand can take advantage of the potential of the Medical Tourism and Wellness. In the current landscape, the MICE industry can actually work together with the Medical Tourism industry as efforts such as Conventions, Exhibitions can create more opportunities for the Medical and Wellness sector in the country. The

promotion through MICE initiatives can push more individuals to consider Thailand for medical treatments and procedure. This coupled with the government initiatives to attract more patients beyond borders to seek medical treatments in Thailand, through extended stay and ease in securing visa are important factors that make it easier

for people to undergo their procedures in the country.

Henceforth, MICE stakeholders must take this opportunity to collaborate with Thailand Convention and Exhibition Bureau (TCEB) to showcase Thailand’s capability in the healthcare space.

KEY TAKEAWAYS FOR MICE STAKEHOLDERS IN THAILAND

Key Recommendations • Meetings with the technology innovators

to further enhance the capabilities of the Medical Industry

• Conduct Medical Forums with Healthcare Professionals to promote the capacity of Thailand and to attract Foreign Investors to understand the prospects

Key Recommendations • Promote cosmetic surgery in Thailand to grasp

opportunities to bring more cosmetic surgery-related conventions to the country

• Strengthen the association with stakeholders within the Medical Tourism industry to further enhance the negotiation power to bring more medical conventions to the country

• Tourism and Healthcare packages – to encourage more international visitors to visit Thailand for healthcare-related conventions

Key Recommendations • Promote cosmetic surgery in Thailand to grasp

opportunities to bring more cosmetic surgery-related exhibitions to the country

• Showcase the famous healthcare facilities in Thailand as a mean to promote the country as one of Asia’s next top destinations for medical tourism

• Medical Tourism exhibitions to introduce new medical procedures

○ On-the spot trial sessions to showcase the procedures available in the country that are not available in other countries (or are more affordable in the country)

MEETINGS CONVENTIONS EXHIBITIONS

6

February 2019

HealthasiaSingapore

HealthAsia

China International Nutrition & Health Industry

Expo

International Health, Wellness and Fitness Expo

Taiwan International Senior Lifestyle and Health Care Show

The 7th International Exhibition and Conference on Health and Lifestyle,

Spa and Wellness, Natural & Organic Products and Services

Beauty & Wellness Manila

CIHIEBeijing, China

April 2019

March 2019

IWFShanghai, China

MDA 2019Taipei, Taiwan

June 2019

March 2019

IndoHealthExpoJakarta, Indonesia

GlobalLinkManila, Philippines

September 2019

UPCOMING MEDICAL TOURISM MICE EVENTS IN ASIA PACIFIC

© 2018 Thailand Convention & Exhibition Bureau. All rights reserved.