Philippine Medical Tourism Compendium 2011 (Facts, Figures & Strategies) - Preview

1. THE PHILIPPINE MEDICAL TOURISM COMPENDIUM 2011 (Facts, Figures & Strategies)
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EXECUTIVE SUMMARY
The global medical tourism market has become one of the fastest growing sectors in the world
economy, with revenues standing at approximately US$40 billion in 2010. Reflective of its
explosive expansion, the industry is projected to grow to US$70 billion by 2013. Some earlier
reports even estimated the total market size for both medical and wellness tourism to stand at
US$3 trillion.
Given the industry’s potential in contributing to the national economy and its rich resource of
medical professionals, the Philippines recognized the bright prospects of this industry as early
as 2004. The question that this study wanted to determine is how successful was the country in
putting in place the hospitals, healthcare and wellness facilities and infrastructure to enable it
to significantly grab a piece of this global market. How does the Philippines rank today when
we talk about medical tourism? What is the country doing in order to get a bigger share of the
revenue?
Our Asian neighbours – India, Thailand, Malaysia and Singapore have made purposive and
decisive moves to create the necessary infrastructure and policy and incentive framework for
attracting visitors to come to their respective countries for medical and wellness services.
As early as 2004, the Philippine government under the administration of President Gloria
Macapagal Arroyo created the Philippine Medical Tourism Program (PMTP), a Public-Private
Partnership Task Force for formulating and implementing development strategies that will help
make the Philippines a hub of health and wellness tourism in Asia. The PMTP sought to enable
the Philippines to earn an estimated US$2 billion annual revenues from the global medical
tourism.
Looking at what has been accomplished, there was obviously a failure to sustain and effectively
capitalize on the momentum of the PMTP. This has resulted in a huge loss of opportunities in
billions of dollars in potential revenues through the years, not to mention thousands of needed
jobs for the health, wellness and tourism sectors.
A serious reassessment of the situation and the formulation of remedies and measures to
revitalize the PMTP and to make it more relevant and viable in the context of the current
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2. THE PHILIPPINE MEDICAL TOURISM COMPENDIUM 2011 (Facts, Figures & Strategies)
trends in medical tourism worldwide are necessary to enable the Philippines to get a significant
share of the rapidly growing international market for medical tourism, which is projected to
grow at an average annual growth rate of 19% over the next three years.
This study determined that the Philippines is still poised to gain a significant share of the
worldwide market. It indicated that the country can capitalize on its competitive advantage
that consists of two market determinants in the international medical and wellness market key
medical service activities and market segmentation.
Based on comparative cost analysis, the country does not only possess competency strengths
in the medical and wellness markets, but also the competitive advantage to compete head-on
and acquire a significant share in specific service segments:
Elective Surgery (specifically cardiovascular care, joint replacement, and eye care)
Aesthetic Services (dermatologic, plastic and reconstructive surgery, and dental care)
Wellness Treatments and Alternative Medicine (including spas, executive check-up and
diagnostic procedures, and alternative therapies such as stem cell or regenerative
medicine)
On the other hand, the study also established that the primary target for Philippine health
services principally should be segmented into two key market clusters: the Filipino Balikbayan
market which comprises Filipino immigrants and those of Filipino descent who are permanent
residents in the US, Australia, Canada and other countries. The number of Balikbayans runs up
to close to 10 million around the world, and many remain in constant communication with
close relatives at home.
The second market consists of foreign nationals who look for more economical medical,
healthcare and wellness services. The study determined the push factors that favour a decision
by foreign patients to seek medical and healthcare treatment and procedures abroad, in
particular in the Philippines because of its competitive advantage in the three service
healthcare segments mentioned above. Because of the sheer size, they constitute a primary
market and it is anticipated that arrivals of foreign medical patients should accelerate if the
proper programs are put in place by the government and the industry.
Lastly, the study has determined that a Philippine Medical Tourism Roadmap is necessary to
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3. THE PHILIPPINE MEDICAL TOURISM COMPENDIUM 2011 (Facts, Figures & Strategies)
install concrete policies and administrative foundations across broad-ranging areas to facilitate
the in-bound entry of medical tourists, to make medical tourism a preferred investment area,
to install accreditation and certification quality systems and support protocols to enhance the
acceptability of the Philippines as a medical tourism destination. Likewise, the medical tourism
system across the value-chain should reconfigure its marketing approaches and service
offerings accordingly to enable the country to achieve higher revenue targets and thus turn it
into the country’s next sunrise industry.
There continues to be good reason to be optimistic about the Philippines’ chances—if it acts
soon enough and it mobilizes the collective support of all stakeholders in government and the
private sector towards a coherent effort to build the country into a preferred hub in the global
healthcare market.
TABLE OF CONTENTS
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4. THE PHILIPPINE MEDICAL TOURISM COMPENDIUM 2011 (Facts, Figures & Strategies)
EXECUTIVE SUMMARY
1 SCOPE OF THE STUDY AND RESEARCH METHODOLOGY
2 MEDICAL AND WELLNESS TOURISM IN THE PHILIPPINES
A Brief History
B Medical Tourism Statistics
C Economic and Social Benefits of Medical Tourism
D Medical and Wellness Facilities in the Country: An Industry Profile
E Supply and Quality of Philippine Medical Professionals
3 THE GLOBAL MEDICAL AND WELLNESS TOURISM MARKET
A Global Trends
B Size and Growth of the Global Market
C Demand-Side Analysis
1. Major Sources of Demand
2. Drivers and Inhibitors of Demand
D Supply-Side Analysis: Top Destination Countries
E Criteria for Selecting Destination Countries
4 COMPETITIVE FACTORS IN THE MEDICAL TOURISM MARKET
A Traditional Value Chain
B The Role of Market Influencers
C Competitive Differentiation and Positioning of the Different Destination Countries
D A New Market Model Recognizing Market Segments and Categories
E Process Flow for Supply and Demand
F Drivers and Motivation of Demand
G Competitive Strengths of the Philippines
H Accreditation and Certification
I Industry and Professional Associations
J Philippine Medical Treatment Costs Relative to USA Costs
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5. THE PHILIPPINE MEDICAL TOURISM COMPENDIUM 2011 (Facts, Figures & Strategies)
K Philippine Healthcare Market Profile
L Regulatory Environment
M Challenges in Philippine Healthcare
N The Philippines’ Positioning
O Market Projections
1. Tourist Arrivals
2. Estimation of Actual Market Demand
3. Actual Demand Trend for Health and Wellness Tourism
4. Potential Industry Demand
5. Sizing the Available Medical and Wellness Tourism Market
6. Estimating Future Demand
5 RECOMMENDATIONS
ANNEXES
ANNEX A Overview of Data Sampling Methodology
ANNEX B Tabulated Data
B.1. Inventory of Services Offered and Corresponding Prices Among
Medical Tourism Program (MTP) Hospitals and Clinics
B.2. Inventory of Services Offered and Corresponding Prices Among
Medical Tourism Program (MTP) Hospitals and Clinics By Location
(in Philippine Peso)
B.3. Inventory of Services Offered and Corresponding Prices Among
Medical Tourism Program (MTP) Hospitals and Clinics By Location
(in US Dollars)
ANNEX C Executive Order 372 (Creating a Public-Private Sector Task Force for the
Development of Globally Competitive Philippine Service Industries)
ANNEX D Philippine Medium-Term Development Plan 2004-2010
ANNEX E Breakdown of Overseas Filipinos and OFWs by Country
ANNEX F HMOs and PPO’sAccommodated by MTP Hospitals and Clinics
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6. THE PHILIPPINE MEDICAL TOURISM COMPENDIUM 2011 (Facts, Figures & Strategies)
ANNEX G List of PhilHealth Centers of Excellence
ANNEX H List of International Accreditation Agencies for Healthcare Organizations
in the Philippines
ANNEX I Department of Tourism Rules & Regulations for Accreditation of Tertiary
Hospitals for Medical Tourism
ANNEX J Department of Tourism Rules & Regulations for Accreditation of
Ambulatory Clinics
ANNEX K Department of Tourism Revised Rules & Regulations for Spa
Establishments
ANNEX L Department of Health Requirements for Application to be a Philippine
Medical Tourism Partner
ANNEX M Guidelines for the Registration of Medical Tourism Special Economic
Zones (Medial Tourism Parks / Centers) and Medical Tourism Locator-
Enterprises
ANNEX N Guidelines for the Registration of Retirement Zones
DIRECTORY
A Profile & Directory of Hospitals Under Philippine Medical Tourism
Program
B Directory of Members of the Philippine Wellness and Spa Association
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