1. Case Study TOM200 Impacts of tourism Diane Drummond
Medical Tourism
Case Study TOM200 Impacts of tourism
Diane Drummond

2. Broad Definition of Medical Tourism
Medical Tourism is ““travel with the aim of improving one’s health.” Bookman and Bookman (2007) Or
“The act of travel with the purpose of health and wellness as an outcome” Brannon (2010)

3. Definition of Medical Tourism
Drummond, McKeown, (2011) defined medical tourism as:
“the act of offshore travel that has been undertaken intentionally for the purpose of having a medical or surgical intervention or procedure within an accredited medical environment such as a hospital”.

4. Brief History
Early records of travel 3000BC documented travel to the temple of healing gods or goddesses in Syria
16-17th Centuries, St Moritz and Bath became popular destinations for the rich to soothe their ills
Medical tourism in its present form has been in vogue for 30 or more years, predominantly for dental or cosmestic surgeries.

6. Photo credit: Recovery by the pool in Thailand

7. Types of Medical Tourism

8. The Continuum of Medical Tourism Activities
Covers all spectrums from birth to death

9. Medical Tourism Host Countries

10. Medical tourism markets ex USA
Mexico million
Thailand million (2006)
India 450,000 (2007)
Singapore 410,000 (2006)
Malaysia 300,000 (2006)
Korea 60,200 (2009)
Costa Rica 20,000
New Zealand patients (2010)

11. The problem is definition

12. Adjusted Medical tourism markets ex USA
Mexico ,000
Thailand 420,000
India 450,000
Singapore 144,000
Malaysia 100,000
Korea 20,000
Costa Rica 7000
New Zealand 150 patients

13. What are they getting done?
Dental %
Surgery %
Cosmetic %
Orthopaedics %
Eye/Vision %
Examination %
Alternative Medicine 2.84%

14. Model for Understanding the Drivers of Medical Tourism
Globalisation
Technology
Medical Tourism
Consumerism
Aging Population

15. Model for Understanding the Drivers of Medical Tourism
Globalisation - Internet, faster planes and greater exposure to other cultures
Technology – the internet has played a major role in the growth as it is a source of significant information on treatment options
Consumerism – Individuals have greater control over decisions that affect their health care, and are more engaged in their health decisions

16. Who is the medical tourist?

17. Who is the medical tourist?
“Of all the people who have ever lived past the age of 65 from the beginning of recorded human history, two thirds are alive today”. Adriane Berg – Generation Bold

18. Model for Understanding the Drivers of Medical Tourism
The growth in medical tourism is being driven by demand.
Consumers are looking for:
Quality of Life solutions
A solution to their health issue
Cost savings against the US equivalent

19. Cost Drivers of Medical Tourism
A massive 80% of the health costs within the United States are the result of Defensive Medicine.

20. Medical Tourism ex USA

21. The size of the medical tourism market
Americans are still not great travellers
Only 10-15% of Americans have passports
360 million Americans, only million have passports
In ,000 American medical tourists sought medical intervention offshore
Major USA generating markets
Los Angeles
New York
Dallas
San Francisco
Washington DC

22. What about the impact on host communities?
It is observed that what is currently known about the effects of medical tourism on host communities is minimal, unreliable, geographically restricted and mostly based on speculation, often due to the third world nature of host country

23. What about the impact on host communities?
Economic Impacts
Increased employment
both within medical sector
and tourism sector
Income benefits
Training
Multiplier effect

24. Economic Flow of Medical Tourism

25. Economic Flow of Medical Tourism

26. Economic Flow of Medical Tourism

27. Economic Flow of Medical Tourism

28. What about the impact on host communities?
Cultural
Preservation of cultural heritage
traditional medicines making a resurgence
Appreciation of local culture
opportunity to have interaction with host community
Cultural Exchange
Language barriers, cultural fit still a challenge.

29. What about the impact on host communities?
Social Impacts
Increased quality of life for communities
Medical staff often bonded
Employment
Increased education
Spirit of place
Successful medical tourism countries have strong government support

30. What about the impact on host communities?
Physical Impacts
Often urban environments
With recuperation in semi rural settings
Risk of infection
Investment in purpose built facilities

31. Photo credit: This photo shows the beachside view from a high-end resort in Mahabalipuram, India that is affiliated with a hospital treating international patients in a nearby city. Patients can choose to go to this resort during their recovery stay.

32. So what about New Zealand?

33. So what about New Zealand?
Currently 2000 patients per annum
Many of these are from Pacific Island communities
as part of New Zealand’s responsibility

34. Economic Flow of Medical Tourism
Currently numbers are low, estimated to be at 150 per annum as intentional medical tourists ex USA.
On average, $1 spent on the medical activity would add an additional $2.99 to the New Zealand economy, from the indirect activities and wider spill over input to the economy. (multiplier effect)

35. Economic Flow of Medical Tourism
14.6% of medical tourism spend is directly related to tourism:
Return flights
Accommodation
Internal travel
Pre and Post Op Activities
Post operative activities taken by 50% of medical tourists

36. Medical Tourism Value Chain in NZ

37. Opportunities for Tourism Operators in NZ
Pre and Post Operative services
Special needs services
Access tourism
Hard of hearing
Sight Impaired
Hotels to have increased disability accessibility
Partner programmes

38. Economic Flow of Medical Tourism
For every $ spent, medical tourism inputs $2.99 back into the economy due to the multiplier effect

39. Economic Flow of Medical Tourism
Each medical tourism patient represents a return of $141,000 into the New Zealand economy

40. Economic Flow of Medical Tourism
Just ten medical tourists represent $1.41 MILLION dollars input
into our economy

41. Economic Flow of Medical Tourism
This potential represents new tourism market of
$2.8 billion dollars
($420m tourism)

42. Demand = Facilitators x Motivators Resistance Factors
Demand Model
Demand = Facilitators x Motivators Resistance Factors

43. Motivators Financially competitive Americans are living longer
NZ has an excellent reputation built on the100% Pure imagery of being clean, but most importantly safe
NZ has first world status and first world health care

44. Facilitators Medical Visa Systems are in place
The distance to market is not seen as a barrier
Americans are risk adverse and NZ is seen as one of the safest destinations on earth
NZ has the capacity with the private healthcare sector to accommodate bednights pa

45. Resistance Factors
Medical tourism is largely owned by the insurance industry who dictate which providers will be used (much like the cruise industry – closed shop)
Access to sufficient numbers has been adhoc, on a case by case basis
The conversion rate of 5% of enquiry is very low

46. What next?
For Medical tourism to be successful in the New Zealand context, it needs investment in a sustained marketing programme, with support from the New Zealand government and key stakeholders (cluster development).