Thailand's medical tourism segment a focus of government initiatives

An expanded product range aimed at broadening the client base alongside plans to target new markets are part of Thailand’s campaign to shore up its medical tourism industry, which is coming under pressure from increased competition and weaker economic performance in key source countries.

In early September 2016 the Ministry of Public Health (MoPH) unveiled a new series of packages as part of the “Visit Thailand Enhance Your Healthy Life” programme aimed at increasing medical and wellness tourism arrivals.

Under the new initiative – developed in conjunction with state agencies and private health care providers – overseas visitors will be able to undergo standard health checks at up to 70 internationally certified hospitals and clinics, combining a regular medical assessment with their vacation. Additionally, the ministry is introducing a wider range of dental and reproductive health services for foreign visitors.

The government is also looking at shifting its promotional efforts towards newer markets, such as China, Myanmar, Laos, Cambodia and Vietnam, to take advantage of the growing affluence in those countries and the rising demand for professional health care. To encourage health tourism from these nations, the government has tripled the period visitors undergoing medical treatments can stay in Thailand to 90 days. This would allow for overseas visitors to undergo extensive procedures and to potentially combine treatment with leisure travel.

Uncertain Prognosis

Efforts to broaden the base of Thailand’s health and wellness tourism sector are timely, as the market is coming under pressure from a range of external factors.

In 2015 the medical tourism segment maintained its record of strong growth, with local media reporting foreign patient numbers up 10.2% year-on-year (y-o-y) to 1.8m in early September 2016, representing 6% of total arrivals in 2015. It is estimated that receipts from medical tourism account for 0.4% of national GDP. This strong performance, however, could come under threat in 2017. Local financial services firm Kasikorn Securities has warned that weaker economic growth in key visitor markets such as the Middle East and Russia, a result of lower energy prices, could erode the numbers of foreign visitors making use of Thailand’s medical facilities.

Furthermore, improved service provision offered by clinics in the UAE, a significant market for Thailand’s medical tourism segment, is also draining off client numbers, the Kasikorn report said. This external pressure has seen a retreat of the health care services index on the Stock Exchange of Thailand, with a number of primary medical services providers posting sharp falls in their share prices in 2016.

Health Threat To Tourism

Another challenge Thailand’s medical sector and the broader tourism industry faces in attracting overseas clientele is the recent spike in cases of the Zika virus in the country and, in particular, in the capital. At least 680 cases of the mosquito-borne disease had been confirmed by mid-November 2016.

Thai authorities have said there is no need for alarm as every measure was being taken to combat the spread of the virus. However, Anuttarasakdi Ratchatatat, epidemiologist at the MoPH’s Bureau of Vector Borne Disease, acknowledged in mid-September 2016, when speaking to local media, that Zika could deter overseas visitors, when explaining why only broad information about infection rates was being released. “The information on Zika is quite sensitive because if we say which province has infections then attention will turn on that province, and if that province is popular with tourists it will have an impact on tourism,” he said. Any downturn in medical tourism arrivals could allow rivals in the sector, such as Malaysia, Turkey and India, to increase their market share at Thailand’s expense.