Chirayu PaulM.A Tourism Business administration The dynamics of tourism

Medical tourism in India

Introduction

Medical tourism is easily spread worldwide. Over 100 countries offer, or want to offer medical

tourism. There are global opportunities for hospitals, surgeries, property investors, travel agents,

hotels and other services. But many are confused by the build-up from the pro - health tourism lobby.

It has been proved that India is the most potential medical tourism market in the world. Factors such

as low cost, scale and range of treatments provided by India separate it from other medical tourism

destinations. The growth in India’s medical tourism market is expected to serve as a boon for several

associated industries also, including hotel industry, medical equipment industry and pharmaceutical

industry.

Travelling to other countries for medical treatment is an upcoming concern for health and tourism

Sector throughout the world. This is due to the fact that in last year’s globalization and

Advancement in technologies all over the world including India brought many changes in

management of medical situation

The report, "Booming Medical Tourism in India", provides a complete insight into the Indian medical

tourism market. It evaluates the past, present and future scenario of the Indian medical tourism market

It clearly discusses the key factors make the India an important part of the medical tourism market.

Health tourism is tipped to be next big-bucks business for India. Health care is a $3trillion industry

worldwide and India is in a position to tap the top-end segment by highlighting its state-of-art

facilities and services, and exploiting the brand equity of leading Indian healthcare professionals

across the globe.

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism What is medical tourism?

“Any kind of travel to make yourself or a member of your family healthy.”

Medical And Health care tourism has 4 parts (from Henderson 2004)

I. Illness

Medical check up

Health screening

Dental treatment

Joint replacement

Heart surgery

II. Wellness

Acupuncture

Beauty care

Facials

Massage

Spa ,yoga

III. Enhancement

Cosmetic surgery

Breast surgery

Facelifts

Cosmetic dental work

IV. Reproduction

Fertility treatment

All these are part of medical tourism.

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism MEDICAL TOURISM AS AN INDUSTRY 

Medical tourism can be broadly defined as provision of ‘cost effective’ private medical care in

collaboration with the tourism industry for patients needing surgical and other forms of specialized

treatment. This process is being facilitated by the corporate sector involved in medical care as well as

the tourism industry - both private and public. 

In many developing countries it is being actively promoted by the government’s official policy.

India’s National Health policy 2002, for example, says: “To capitalise on the comparative cost

advantage enjoyed by domestic health facilities in the secondary and tertiary sector, the policy will

encourage the supply of services to patients of foreign origin on payment. The rendering of such

services on payment in foreign exchange will be treated as ‘deemed exports’ and will be made eligible

for all fiscal incentives extended to export earnings”.

 (http://summertrainingreports.blogspot.com/2010/01/medical-tourism-in-india-special.html)

The concept medical tourism was initially coined by the travel agencies and the media as a catchall

phrase to describe a fast growing industry where people travel to different nations to obtain medical

services. Leisure aspect of travelling can be included on such a medical travel trip. It includes medical

health care services like knee/hip replacement, heart surgery, dental procedures and different

cosmetic surgery. 

The idea of Medical Tourism is not a new one. The earliest recorded event of medical tourism dates

back hundreds of years to when Greek pilgrims travelled from Mediterranean to the small place in the

Sardonic Gulf called Epidaurus. This place was the sanctuary of the healing God Asclepius.

Epidaurus then became the original travel destination for medical tourism.

(http://www.articlesbase.com/medicine-articles/the-concept-of-medical-tourism-

376135.html#ixzz17IlWnYQc)

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism

India’s medical tourism sector is expected to experience an annual growth rate of 30%, making it a

Rs. 9,500-crore industry by 2015. Estimates of the value of medical tourism to India go as high as $2

billion a year by 2012. Advantages for medical tourists include reduced costs, the availability of latest

medical technologies and a growing compliance on international quality standards, as well as the fact

that foreigners are not likely to face a language barrier in India. The Indian government is taking steps

to address infrastructure issues that hinder the country's growth in medical tourism.

http://en.wikipedia.org/wiki/Medical_tourism

Role of a travel agent in the medical tourism market

Since their an increase in the medical tourism the travel trade has been on target to increase the travel

of people. A full package is made which includes the travel arrangements, hotel arrangements and the

hospital arrangements (appointments for check up or operation timings) .this helps in growth of the

business.

Eg: In the eastern India, Indian airlines has teamed up with the leading city hospital to give air

passengers 30% discount on check-ups and air fare. Kuoni travels India Ltd has set up a separate

division “Sit care “ for the medical tourism .MAS golden holidays has been launched by Malaysian

airlines in support of the government ‘s efforts to promote Malaysia as a medical tourism destination .

Why India?

The countries where medical tourism is being actively promoted include Greece, South Africa,

Jordan, India, Malaysia, Philippines and Singapore. India is a recent entrant into medical tourism. The

Indian government predicts that India’s $17-billion-a-year health-care industry could grow 13 per cent

in each of the next six years, boosted by medical tourism, which industry watchers say is growing at

30 per cent annually. Price advantage is a major selling point. The slogan, thus is, “First World

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism treatment’ at Third World prices”. The cost differential across the board is huge: only a tenth and

sometimes even a sixteenth of the cost in the West. India has a lot of hospitals offering world class

treatments in nearly every medical sector. For long promoted for its cultural and scenic beauty, India

is now being put up on international map as a heaven for those seeking quality and affordable

healthcare. Analysts say that as many as 150,000 medical tourists came to India in 2004. As Indian

corporate hospitals are on par, if not better than the best hospitals in Thailand, Singapore, etc there is

scope for improvement, and the country is becoming a preferred medical destination. In addition to

the increasingly top class medical care, a big draw for foreign patients is also the very minimal or

hardly any waitlist as is common in European or American hospitals.

(http://cyberlectures.indmedica.com/show/235/1/A_Case_Study_on_Medical_Tourism_in_Hyderabad

_City)

Quantitative and qualitative data on medical tourism in India

Advantages of Coming to India for Medical Treatment

I. Internationally certified medical services using the latest technologies.

II. Highly qualified Physicians/Surgeons and hospital support staff.

III. Major cost savings compared to their domestic private healthcare.

IV. Medical treatment costs in India are lower by at least 60-80% when compared to similar

procedures in the UK and North America.

V. No Waiting for appointments.

VI. Effortless English speaking staff.

VII. Options for private room, translator, private chef, dedicated staff during your stay and many

other custom-made services.

VIII. Can easily be combined with a leisure or business tour.

Quality in Health Care

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism India the famous country has found another way to give to the world through quality health care. Now

is the time when it is giving its best through quality health care and medical tourism facilities.

Increasing demand on the medical facilities and the hike in the buying capacity of the Indians and the

international visiting India has led to the recent development in the quality health care and medical

facilities.

Contribution to the economy

Combining matchless growth prospects and unlimited business potential, the industry is certainly on

the front towards being a key player in the growth of the country

The hotel and tourism industry’s have given a vital contribution to the Indian economy by way of

foreign direct investments (FDI) inflows was at about $ 2.1 billion from April 2000 to March 2010,

according to the Department of Industrial Policy and Promotion (DIPP).

Foreign Tourist Arrivals

As per the press release by Press Information Bureau dated 4th March, 2010, the monthly estimates

for February 2010, compiled by the Ministry of Tourism on two important indicators of tourism

sector, foreign tourist arrivals (FTAs) and foreign exchange earnings (FEEs) were as follows:

FTAs during the Month of February 2010 were 601,000 as compared to FTAs of 547,000

during the month of February 2009. A growth of 9.9 per cent was registered in February 2010

over February 2009.

FTAs during the period January-February 2010 were 1,092,000 with a growth rate of 12.7 per

cent, as compared to the FTAs of 968,000 during January-February 2009.

FEE during the month of February 2010 were US$ 1.4 billion as compared to US$ 923 million

during the month of February 2009.

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism

The growth rate in US$ terms in FEE touched in February 2010 over February 2009 was 55.4

per cent.

http://www.focusindiagroup.in/focus/tourismhospitality.aspx

Comparison of prices for medical facilities offered in India/US in USD

Cost Comparison - India vs. United Kingdom

India is not only cheaper but the waiting time is almost nil. This is due to the sudden occurrence of

the private sector comprises of hospitals and clinics with the latest technology and best staff.

Procedure UK ($) Approx India ($) Approx

Open Heart Surgery $18,000 $4800

Facial Surgery and Skull base $13,000 $4500

Neurosurgery with Hypothermia $21,000 $6800

Complex spine surgery with implants $13,000 $4600

Hip Replacement $13,000 $4500

Simple Spine Surgery $6500 $2300

Simple Brain Tumor:

Biopsy

Surgery

$4,300

$10,000

$1200

$4600

Parkinson’s:

Lesion

DBS

$6500

$26,000

$2300

$17,800

* These costs are an average and may not be the actual cost to be incurred. (http://www.indian-

medical-tourism.com/medical-tourism-india-price-benefits.html)

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism

Some of the top hospitals in India

Apollo Hospital Enterprises

It is one the largest Indian largest hospitals with 37 hospitals and 6,400 beds and with

hospitals in Kuwait,sri lanka and Dubai it is estimated that this hospital has treated 95,000

international patients. Deep kalra, CEO of the travel agency make my trip.com estimates that

the medical tourism is in upcoming and the booming market and about the 12million visitors

are expected in the coming year. There are several medical tourism packages launched after

2005.

Escorts

A group of retired Indian heart surgeons working in my manhattan, claims that it has doubled

the number of overseas patients from 675 in 2000 to nearly 1,200 in 2004 and has been

increasing by 25% every year.

The hospital has been maintaining its standards and credibility. Now there is over 4000 heart

operation in a year.

Madras institute of trauma hospitals

This hospital was opened in 1999, with a few international patients. They were to 1300

overseas patients in 2004 -2005, from all over the world.

(http://www.indian-medical-tourism.com/medical-tourism-india-price-benefits.html

The Medicity 

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism It is one of India's largest multi-super specialty institutes located in Delhi NCR Gurgaon, a bustling

town in the National Capital Region. Founded by eminent cardiac surgeon, Dr. Naresh Trehan, the

institution has been living with the aim of bringing to India the highest standards of medical care

along with clinical research, education and training.

Spread across 43 acres, the institute includes a research center, medical and nursing school. It has

1250 beds and over 350 critical care beds with 45 operation theatres catering to over 20 specialties.

Medanta houses six centers of excellence which will provide medical intelligentsia, cutting-edge

technology and state-of-the-art infrastructure with a well-integrated and comprehensive information

system. 

(http://www.medanta.org/about_an_overview.aspx)

Some of the services offered by all Hospitals

1. Angioplasty and Cardiac Bypass surgery - (Cardiology) 

21Knee and Hip replacement, Arthroscopy - (Orthopaedics) 

3.Cataract, Glaucoma, LASIK - (Ophthalmology) 

4.Breast implants and Liposuction - (Plastic surgery) 

5.Removal of Brain Tumour and slipped disk removal - (Neurosurgery) 

6. Dialysis and Kidney Transplant - (Urology) 

7.Cancer Therapy - (Oncology) 

8.Dental Implants, Oral Surgery, Crowns & Bridges - (Dentistry) 

(http://www.medicaltourinfo.com/India.htm#Medical Tourism India)

The size of Indian Medical Tourism sector estimated in 2002 to be min 1,00000 to 1,50,000 foreign

patients per year (Medical Tourists) .

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism

The annual growth rate of Medical Tourism in India

2000 --15% per year

2007 --30% per year

2009 –35%Per year

Forecasting

About 17 billion Indian Healthcare Industry contributes about 4% -5% of GDP. It is expected to grow

@ 13% annually in next 5 yrs. Health care spending in India will increase from Rs. 86,000 crores in

2000-2001 to over Rs. 200,000 crores by 2012.Private Health care share will form the largest of this

@ Rs.156,000 crores and growth will be driven by rising life style diseases.

(www.assocham.org/events/recent/event_290/M_Srivastava.ppt)

According to the Travel & Tourism Competitiveness Report 2009 brought out by the World

Economic Forum, the contribution of travel and tourism to gross domestic product (GDP) is expected

to be at US$ 187.3 billion by 2019. Export earnings from international visitors coming for medical

tourism are expected to get US$ 51.4 billion (nominal terms) by 2019. The report also states that real

GDP growth for travel and tourism economy is expected to get an average of 7.7 per cent per annum

over the next 10 years , this sector which collected 6.4 per cent of total employment in 2009 is

estimated to rise to 7.2 per cent of total employment by 2019.

India’s hotel pipeline is the second largest in the Asia-Pacific region according to Jan Smits, Regional

Managing Director, InterContinental Hotels Group (IHG) Asia Australasia. He says” that the Indian

hospitality industry is projected to grow at a rate of 8.8 per cent during 2007-16, placing India as the

second-fastest growing tourism market in the world. Initiatives like massive investment in hotel

infrastructure and open-sky policies made by the government are all aimed at propelling growth in the

hospitality sector”. 

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism

Sanjay Gupta, CMD, Neesa Leisure Ltd stated that the hotel and hospitality industries are among the

biggest employment generators in the country. 

According to industry data, India is expected to double the number of branded hotel rooms from

100,000 now in just three years. Leading the pack are global hotel chains, which will add over 300

hotel properties (an estimated 55,000 rooms) in the country by 2013, as per data compiled by

companies. 

(http://www.focusindiagroup.in/focus/tourismhospitality.aspx)

Conclusion

From all the research and analyses it can clearly be stated that people travelling to India for medical

tourism for the simple reason that the cost is comparatively very low and the most important is that

the patients waiting time for an appointment is nearly nil as compared to UK and USA which is

minimum 3months .India has all the latest technology and all the specialised doctors and staff who

can take best care of the international tourist come for any medical treatment .Travel agents Have

joint hands with all the major hospitals to make medical tourism a sustainable market and creating a

higher demand and improving the standard of tourism and create a higher recognition worldwide in

the field of tourism.

References

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism 1.http://www.savemeindia.com/medical_tourism.html

2. http://summertrainingreports.blogspot.com/2010/01/medical-tourism-in-india-special.html

3.  http://www.indian-medical-tourism.com/medical-tourism-india-price-benefits.html

4.

(

http://cyberlectures.indmedica.com/show/235/1/A_Case_Study_on_Medical_Tourism_in_Hyderabad

_City).

5. http://en.wikipedia.org/wiki/Medical_tourism

6. www.assocham.org/events/recent/event_290/M_Srivastava.ppt

7. http://www.medicaltourinfo.com/India.htm#Medical Tourism India

8. http://www.focusindiagroup.in/focus/tourismhospitality.aspx.

9.TRAM (TOURISM RESEARCH AND MARKETING)ATLAS. Chapter 2,3,4,5)

10. http://www.medanta.org/about_an_overview.aspx

11. Henderson 2004

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism

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Chirayu PaulM.A Tourism Business administration The dynamics of tourism

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