Medical Tourism in Developing Countries
Medical Tourism in Developing Countries Medical Tourism in Developing Countries
Promoting Medical Tourism ● 117interface between Cuban information networks and the global Internet. 84The INFOMED enables Cuba to engage in all four modes of internationaltrade in health services as described by GATS.PowerWhile power has yet to reach some 2 billion people across the world, 85 theseare not the individuals associated with the medical tourism sector. It is alsolikely that these are not people located in resort areas since modern touristfacilities require power. There are some exceptions, such as remote safaricamps where the lack of power is part of the décor, or a spa treatment wherecandlelight is required for atmosphere. As in the case of other infrastructure,LDC authorities are faced with the choice of powering resorts versus bringingelectricity into nontourist destinations. In countries with an activetourist agenda, the opportunity cost of forgoing the tourist region is enormous.As a result, in a tourist-friendly country such as South Africa, only11 percent of rural households have access to electricity (even though 70percent of the population resides there 86 ).Electrified regions of LDCs, whether they are tourist spots or capitalcities or remote farms, suffer from unreliable power supply that restrictsproduction. Blackouts and brownouts in power systems disrupt economicand private life. However, the large hospitals that promote medical tourismare shielded from such unreliability by their independent generators andpower supplies. Among the countries under study, only India and thePhilippines are below the LDC average of electricity consumption (569 and610 kilowatt hours per capita respectively, compared to 1,155). 87TransportTransportation systems are crucial for economic development insofar as theyenable the movement of goods, services, and resources, and thereby enablecommercial relations to thrive. A developed, maintained, and functioningtransportation system is likely to stimulate the flow of populations, not justinternational patients/tourists, but also migrants who respond to changingmanpower demands of the medical tourism industry. 88 In contrast, a deterioratinginfrastructure consisting of traffic congestion, lapsed maintenance ofroads and ports, and an outdated urban transport strategy restrains the flowof international patients and dampens their demand for medical tourism.With respect to the extent and maintenance of roads (table 5.4), againIndia and the Philippines have the least developed road system whileMalaysia and Jordan have the most developed. When it comes to another
118 ● Medical Tourism in Developing Countriesindicator of transportation infrastructure, namely air transport, it is SouthAfrica and Chile that are most developed. This difference might be explainedby the geography of the countries: by the sheer size of South Africa and thelength of Chile, air transport is more in demand than road travel.Money and BankingThe banking system ensures a safe store of assets. This is crucial for themedical tourist who must have the ability to easily export his bank assetsto his holiday destination. He requires plentiful and conveniently locatedATMs from which he can easily get cash on demand. Destination authoritiesmust either provide banks where this is possible, or allow foreign banksto have branches in tourist destinations. Another function of the bankingsystem is to provide a credit market. This is crucial for the supply-side ofmedical tourism as it offers local entrepreneurs investment opportunities.Corporations can raise capital through money markets and individuals canuse micro-level credits to invest in bed-and-breakfasts, motorized guideservices, and other tourist-related small businesses.Table 5.5 Sophistication of financial markets and access to loansFinancial marketsophisticationEase of access to loansArgentina 3.9 (59) 2.1 (111)Chile 5.3 (26) 3.9 (32)Costa Rica 3.7 (67) 2.6 (80)Cuba n.a. n.a.India 5.0 (32) 4.1 (26)Jordan 4.2 (48) 3.1 (63)Malaysia 5.4 (24) 4.4 (19)Philippines 4.0 (55) 2.8 (70)South Africa 5.8 (12) 3.9 (36)Thailand 4.3 (41) 3.8 (40)6.7 (1) UK 5.4 (1) Finland1.7 (117) Chad 1.6 (117) BeninNote : Perceptions are scored from 1 to 7 according to responses to the following statements. The level ofsophistication of financial markets in your country is (1 lower than international norms, 7 higher thaninternational norms); how easy is it to obtain a bank loan in your country with only a good business planand no collateral? 1 impossible, 7 easy). Rank out of 117 countries is in parentheses.Source : World Economic Forum, Global Competitiveness Report 2005–06, (New York: Palgrave Macmillan,2006), tables 2.03, and 2.05.
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118 ● <strong>Medical</strong> <strong>Tourism</strong> <strong>in</strong> Develop<strong>in</strong>g <strong>Countries</strong><strong>in</strong>dicator of transportation <strong>in</strong>frastructure, namely air transport, it is SouthAfrica and Chile that are most developed. This difference might be expla<strong>in</strong>edby the geography of the countries: by the sheer size of South Africa and thelength of Chile, air transport is more <strong>in</strong> demand than road travel.Money and Bank<strong>in</strong>gThe bank<strong>in</strong>g system ensures a safe store of assets. This is crucial for themedical tourist who must have the ability to easily export his bank assetsto his holiday dest<strong>in</strong>ation. He requires plentiful and conveniently locatedATMs from which he can easily get cash on demand. Dest<strong>in</strong>ation authoritiesmust either provide banks where this is possible, or allow foreign banksto have branches <strong>in</strong> tourist dest<strong>in</strong>ations. Another function of the bank<strong>in</strong>gsystem is to provide a credit market. This is crucial for the supply-side ofmedical tourism as it offers local entrepreneurs <strong>in</strong>vestment opportunities.Corporations can raise capital through money markets and <strong>in</strong>dividuals canuse micro-level credits to <strong>in</strong>vest <strong>in</strong> bed-and-breakfasts, motorized guideservices, and other tourist-related small bus<strong>in</strong>esses.Table 5.5 Sophistication of f<strong>in</strong>ancial markets and access to loansF<strong>in</strong>ancial marketsophisticationEase of access to loansArgent<strong>in</strong>a 3.9 (59) 2.1 (111)Chile 5.3 (26) 3.9 (32)Costa Rica 3.7 (67) 2.6 (80)Cuba n.a. n.a.India 5.0 (32) 4.1 (26)Jordan 4.2 (48) 3.1 (63)Malaysia 5.4 (24) 4.4 (19)Philipp<strong>in</strong>es 4.0 (55) 2.8 (70)South Africa 5.8 (12) 3.9 (36)Thailand 4.3 (41) 3.8 (40)6.7 (1) UK 5.4 (1) F<strong>in</strong>land1.7 (117) Chad 1.6 (117) Ben<strong>in</strong>Note : Perceptions are scored from 1 to 7 accord<strong>in</strong>g to responses to the follow<strong>in</strong>g statements. The level ofsophistication of f<strong>in</strong>ancial markets <strong>in</strong> your country is (1 lower than <strong>in</strong>ternational norms, 7 higher than<strong>in</strong>ternational norms); how easy is it to obta<strong>in</strong> a bank loan <strong>in</strong> your country with only a good bus<strong>in</strong>ess planand no collateral? 1 impossible, 7 easy). Rank out of 117 countries is <strong>in</strong> parentheses.Source : World Economic Forum, Global Competitiveness Report 2005–06, (New York: Palgrave Macmillan,2006), tables 2.03, and 2.05.
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