In 2015, it was estimated that medical tourism generated between U.S. $60 and U.S.$70 billion. It was predicted at the time that health tourism would generate at least twice these revenues by 2020. The market in 2019 & 2020 has changed due to new laws, healthcare guidelines, the emergence of the non prognosticated global pandemic (COVID-19) and its associated International governmental travel restraints. It is certain that the global population in general has become more accustomed and to the idea of medical tourism and aware of the offered benefits in the quality of International healthcare, wellness, treatments and services, as well as their affordability, availability, accessibility, and attainability in comparison to the USA.

There are unknowns to consider or assume when looking at the medical tourism market. GMEDCA understands the consumer demand, interest and concerns. It is a part of the GMEDCA core mission to help educate patients and navigate through the information, clear any confusion or convolution, and define medical options that are available and affordable to the American consumer. What we do know is that a significant majority of travelers will not declare medical interventions as their reason for travel. Different countries add up the numbers differently. Some include health and wellness tourists in this bracket, or even returning expatriates with a right to treatment in their home country.

The industry is now much more closely studied, as interest has grown with public popularity, giving a more accurate outlook of upcoming trends. Zion Market Research published a new report titled “Medical Tourism Market by Treatment Type: Global Industry Perspective, Comprehensive Analysis, and Forecast, 2017 – 2024” which adjusted revenue forecasts over the next 5 years. They have found that the market “is expected to generate revenue of around USD 28.0 billion by the end of 2024, growing at a CAGR of around 8.8% between 2018 and 2024”.

The Full Picture

In today’s era of data analytics, technological advancements in data collection, performance metrics, and in communication methods have revealed the full extent of recent growth. If we include not only medical treatments carried out by differing service providers but dental and cosmetic procedures as well, the number of American patients or consumers that sought out and received medical treatment abroad is literally compelling. A study published in the American Journal of Medicine revealed that the number of medical tourists to all countries in 2017 was estimated at 14-16 million. Now that we know this, we simply have to find their average spend to know the true value of the industry. Foreign patients can actually spend up to $6,000 on each trip, bringing the total amount of money generated up to $72 billion.

This is no small amount of money and countries in Asia and the Middle East are moving to capitalize on a global business that is worth around 36.9 billion in 2018! These countries are able provide the same service at the same quality and safety level due to lower staff pay levels, medical indemnity costs and more. The end price therefore seems greatly reduced to the patient, drawing them from their home country for treatment. This is so lucrative that even American hospitals, such as Harvard, John Hopkins and more have begun funding medical centers and clinics outside of the U.S.

Over the last few years, medical tourism has gained popularity among highly industrialized countries such as the United States. The number of medical tourists from the United has increased from about 750,000 in 2007, to over 1.4 million a decade later in 2017.

While exact statistics for medical tourism are difficult to confirm, these estimations indicate a strong potential for medical tourism in the future.

Why Travel Abroad For Medical Treatment?

While most would think that medical travelers seek cheap and fast medical attention, some facts in a February 2018 report by PWC regarding medical tourism indicated otherwise. The average spending per visit now rests at $3,000 – $10,000 per tourist. Interestingly the majority of tourists actually came from Indonesia, hitting 600,000 for the year, with the USA in second place with 500,000 going abroad. The report predicted that the medical tourism market will be at a value of 125 billion by 2021 whilst the wellness market would reach a staggering 808 billion.

A lack of health insurance is the most common factor for medical travel, but the report recognized a patient’s need for accessibility, experience focused offerings and an increasing desire for high quality care.

  • Approximately 2.5 million foreign patients traveled to hospitals in Thailand in 2013. In Bangkok’s prestigious Bumrungrad International Hospital, over 520,000 international patients received treatment at the hospital.
  • Singapore has been a growing medical tourism center in South East Asia with 850,000 medical tourists arriving in 2012. In January 2019 however, a report was released by RHB Research, the article quotes analyst Juliana Cai saying “As healthcare costs in neighboring countries like Malaysia and Thailand are much lower, they have been attracting medical tourists from the region – thereby eating into Singapore’s market share.”
  • Latin America, particularly Costa Rica and Panama, are fast becoming tourist spots for medical travelers with approximately 40,000 foreign patients seeking healthcare in Costa Rica in 2011.
  • Due to its close proximity to the U.S., Mexico has become a top medical tourism destination with 40,000 to 80,000 American seniors spending their retirement there with a considerable number receiving nursing home and health care. According to Politico however, the recent events with Donald Trump and the wall could damage the flow of medical tourism across the border.
  • After visitors number more than doubling in the last 5 years, Malaysia is also becoming a famous destination with 770,134 medical travelers in 2013. In 2016 Malaysia received numerous awards and global recognition from International Medical Travel Journal. Among the awards won by The Malaysia Healthcare Travel Council (MHTC) were ‘Health & Medical Tourism: Destination of the Year’, International Hospital of the Year, “International Cosmetic Surgery Clinic of the Year”, ‘International Dental Clinic of the Year’, ‘International Fertility of the Year’, and ‘Best Marketing Initiative of the Year’.
  • India has become a medical tourism hot spot, with 166,000 international patients in 2012 coming to the country due to the selection of highly skilled doctors and improved medical infrastructure. In 2016 the numbers kept rising, with over 170,000 medical visas awarded. This represents only a fraction of the total medical tourists entering the country.
  • South Korea has now entered the top ten countries in the world in terms of tourist volume. At the last available count in 2016, 390,000 people travelled to Korea as a medical tourist compared to the overall patient volume of 14 million.
  • The UK has recently announced the need for improved quality standards for cross border care. There seems to be room for more private inbound medical tourism but there needs to be a change in the cap on numbers allowed currently.
  • In Spain, the demand for medical tourism has skyrocketed, especially in the town of Marbella. Over 330 million euros a year are generated in the province. The Quirón business group is the biggest medical supplier in Spain and it treats up to 20,000 foreign patients a year, with most of the patients coming from the UK, Netherlands and Finland.
  • As fertility decreases in the MENA region the demand for IVF and related services grows. In North Africa and the Middle East there is a $1 billion market, serviced by Turkey but also increasingly by the United Arab Emirates and Saudi.