In 2018, the Philippines ranked 19th globally in the Medical Tourism Index. It was ranked sixteenth in the medical tourism industry and nineteenth in terms of facility and service quality. What was once thriving industry is now struggling to stay afloat in the face of the pandemic. Will the medical industry in the Philippines be able to keep up with the rest of the world as various industries try to get back on their feet following the devastating economic impact of COVID-19?
Medical Tourism Before The Pandemic
The medical tourism industry has exploded in popularity over the last decade. Between 2018 and 2019, the industry earned $58.6 billion, growing at an 11.7 percent annual rate.
It was a significant growth industry in the majority of developing countries. The gradual public interest in the idea of combining medical treatment with a vacation can be attributed to increased public awareness. Citizens from higher-income countries are responsible for this awareness, particularly in light of the fact that countries with emerging economies typically have more affordable healthcare options than the former. Increased healthcare costs in these countries have resulted in an increased desire for medical treatments not available through the mainstream western medical system.
Although growth has been slow, the number of medical tourism destinations worldwide has been steadily increasing. These medical tourism destinations are gaining popularity as a result of their more affordable healthcare. Additionally, medical tourists are attracted by the prospect of combining medical procedures with vacation plans.
Prior to the pandemic, the medical business was a thriving industry, anticipated to reach annual revenue of about $142.2 billion by 2026.
Medical Tourism During The Pandemic
It wasn’t just medical tourism that contributed to the industry’s decline. Other factors influencing the market include the threat posed by the Covid-19 pandemic. However, the most indicative of this is the reduced airline demand which likewise reduced the number of domestic and international flights.
This created a domino effect, which resulted in the closure of medical tourism agencies, facilities, as well as the occurrence of financial hardships which further wrecked its key allied industries.
The three countries that have received the most significant travels in international medical tourism before were Indonesia, Thailand, and the Philippines. With Indonesia receiving the most patients.
Despite this, medical tourism in the Philippines appears to remain highly competitive, owing to the Filipinos’ English proficiency and warm hospitality. In comparison to other western countries’ medical tourism destinations, the Philippines has less competition. Additionally, a free-market healthcare system provides better care, more services, and greater physician choice.
As previously stated, the recent decline in medical tourism is directly related to the global recession; however, it is possible that the relatively relaxed travel restrictions implemented last summer will help reverse the trend. Historically, the majority of restrictions on medical tourism have been associated with the temporary decline in pre-pandemic levels.
After The Pandemic, Possibly
What will be the outcome of the future of medical tourism in the face of numerous uncertainties and a massive global economic downturn?
Verdict conducted a poll to determine how long it will take for the medical tourism industry to recover to pre-pandemic levels. A majority of respondents (52%), believe it will take one to three years. The analysis is based on 441 responses received between 22 January and 1 March from readers of Pharmaceutical Technology, a Verdict network site.
To begin, medical tourism agencies’ business models must be adapted to modern times, which key industry players have already begun to do. This is accomplished by encouraging healthcare providers and airline companies to upgrade their digital strategies, as demonstrated by some agencies’ launch of telemedicine platforms to connect with both domestic and international patients. Additionally, airline companies are expanding their digital platforms through which passengers can plan their itinerary online and are pioneering data-driven operating models for the post-pandemic era.
To encourage international tourists to visit countries with controlled COVID-19 cases, massive travel packages are being offered. For example, Sicily’s southern island has a unique travel offer in which officials cover half of the visitors’ flight costs and a third of their lodging costs, all in the name of luring tourists to the city.
Other healthcare providers are offering COVID-19 coverage in an effort to revive business and strengthen their market position. Aetna, for example, is collaborating with partner hospitals to waive copayments for COVID-19 and its associated complications.
Numerous renowned hospitals and health resorts throughout the world continue to offer medical treatments. Additionally, the services and amenities provided by these medical hotels are exceptional. Several of these models are even reinventing themselves in order to diversify their businesses into the more stable and untapped assisted living sector.
Therefore, when planning a medical vacation hotspot, coming up with an outstanding hotel design and layout is critical. More people prefer to spend their procedures in these resorts rather than in hospitals or clinics. As a result, resort architecture is becoming increasingly important in the design and construction of such retreats. The primary objective of resort architecture is to create a welcoming environment that incorporates the necessary facilities, patient care services, cutting-edge technologies, scenic views, and wellness amenities.
Only time will tell whether the medical tourism industry can regain its footing, and possibly even grow stronger than it was prior to all of these well-intentioned efforts. What is certain is that that the demand for medical care will constantly exceed the supply. The industry will continue to focus on developing new models and strategies as global key players to attract millions of medical tourists to their destinations, ultimately restoring revenue to pre-recession levels.
