Medical Tourism in Developing Countries
Medical Tourism in Developing Countries Medical Tourism in Developing Countries
Would You Like a Safari With Your Lasik Surgery? ● 71where all medical tourism is in the public sector, and India on the other,where the private sector is spearheading the industry.How did government involvement in medical tourism come about indeveloping countries? Until recently, tourism in general was not viewed asa serious industry, not as clearly associated with modernization and growthas a large capital goods factory. Similarly, as long as medical tourism waslimited to informal services of traditional healers such as Tony Agpaoa,authorities did not pay attention. All that changed when profits from alltypes of tourism began to skyrocket. Perceptive governments responded tothis unexpected interest in their human, physical, and natural resources bysingling out the tourism sector for investment and subsidy. In view of theforeign interest in LDC medical care, governments are doing the same inthat sector.As a result, today every country that can, is marketing its health care forpaying foreigners. Marconini notes, “It has become increasingly acceptedthat national care systems should be regarded as export-oriented industries.”18 Gupta, Goldar, and Mitra remark that the inflow of foreign patientsfrom developing and more developed countries is both possible and desirable,and thus should be pursued aggressively. 19 Such aggressive pursuit isreflected in tourist and health-care policies across the globe. This is true inthe more developed countries (witness most recently the strategic plan forrecreating the Hawaiian tourist industry by striving to become the wellnesscenter of the Pacific 20 ). It is also true in oil-rich Middle Eastern countries(such as the Arab Emirates that have created a trade free zone for DubaiHealthcare City where the authorities promise there will be, “no red tape,hassle-free visas and a streamlined labour process, simplified licensing andapplications.” 21 In addition, there will be no taxes on sales, income, orcapital gains, only corporate tax for financial institutions. There will beno restrictions on capital, no trade barriers or quotas, no need for a localpartner, just one-stop-shopping for government services (such as 24-hourvisa extensions and other permits).The public sector promotes medical tourism in all destination countriesunder study. The Chilean authorities hope to “add surgical operations andcutting edge medical treatments to its traditional exports of copper, wineand salmon.” 22 Cuba has a long history of promoting medical tourism andas Benavides notes, “One of the main objectives of the Cuban governmenthas been to convert the country into a world medical power.” 23 Indeed, thetreatment of foreign patients is the cornerstone of the government’s strategy.Across the globe in the Philippines, in 2005, the government announcedwith great fanfare that the Departments of Tourism and Health are teamingup to provide medical tourism. In India, the national health policy in 2002
72 ● Medical Tourism in Developing Countriesspecified a role for medical tourism, and a year later, finance ministerJaswant Singh called for India to become a global health destination, markingthe beginning of government policy to merge medical expertise andtourism. 24 In Malaysia, the government formed the National Committeefor the Promotion of Health Tourism, providing its leadership and indicatingits intention to facilitate and encourage the development of the industry.25 Medical tourism has made it on to the country’s five-year plans.A campaign called Amazing Thailand was launched by Thai authorities inthe late 1990s, and health care is one of the niches being promoted. 26As part of the campaign, the government is developing health-care centersin tourist spots outside of Bangkok (such as in Phuket and Chiang Mai). 27Once medical tourism makes it onto the government’s radar, decisionsmust be made about how to promote the industry. One dilemma is thequestion of which subsidies to give, and in what quantities. The Philippinegovernment, for example, showed its support for medical tourism in the2004 Investment Priorities Plan, which gave investment incentives such asreduced tariffs on importation of hospital equipment. 28 Similarly, Indianauthorities have provided benefits such as lower import duties on equipmentrequired for medical tourism. They have also increased the rate ofdepreciation for life-saving medical equipment.Governments also give incentives directly to hospitals. Cuban authorities,for example, have granted budgetary allotments as rewards to hospitalsthat give priority to foreign patients over locals. 29 Malaysia’s government haspromised their backing and incentives to medical establishments. TheEighth Plan for 2001–05 identified 44 of the country’s 224 private hospitalsto take part in health tourism, and the Health Ministry then selected 35 tomarket themselves abroad. 30Promoting medical tourism, by necessity, entails the promotion of supportingindustries otherwise bottlenecks can easily occur. It is most importantto develop infrastructure, including transportation, communication,banking, water and sanitation systems, and electrification. The sectors thatproduce inputs for the health industry are crucial (including medical equipment,pharmaceuticals, construction of medical facilities and, of course, theeducation of health professionals). Sometimes authorities also promote secondaryproducts and services that enhance the tourist experience, such astennis balls and suntan lotion.Governments must also provide an encouraging environment, one thatis conducive to investment, production, and profit maximization. Thatenvironment must maximize the potential of the industry with state levelreforms that enable medical tourism to develop, including privatization,deregulation, and liberalization of trade. Along with deregulation, regulation
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Would You Like a Safari With Your Lasik Surgery? ● 71where all medical tourism is <strong>in</strong> the public sector, and India on the other,where the private sector is spearhead<strong>in</strong>g the <strong>in</strong>dustry.How did government <strong>in</strong>volvement <strong>in</strong> medical tourism come about <strong>in</strong>develop<strong>in</strong>g countries? Until recently, tourism <strong>in</strong> general was not viewed asa serious <strong>in</strong>dustry, not as clearly associated with modernization and growthas a large capital goods factory. Similarly, as long as medical tourism waslimited to <strong>in</strong>formal services of traditional healers such as Tony Agpaoa,authorities did not pay attention. All that changed when profits from alltypes of tourism began to skyrocket. Perceptive governments responded tothis unexpected <strong>in</strong>terest <strong>in</strong> their human, physical, and natural resources bys<strong>in</strong>gl<strong>in</strong>g out the tourism sector for <strong>in</strong>vestment and subsidy. In view of theforeign <strong>in</strong>terest <strong>in</strong> LDC medical care, governments are do<strong>in</strong>g the same <strong>in</strong>that sector.As a result, today every country that can, is market<strong>in</strong>g its health care forpay<strong>in</strong>g foreigners. Marcon<strong>in</strong>i notes, “It has become <strong>in</strong>creas<strong>in</strong>gly acceptedthat national care systems should be regarded as export-oriented <strong>in</strong>dustries.”18 Gupta, Goldar, and Mitra remark that the <strong>in</strong>flow of foreign patientsfrom develop<strong>in</strong>g and more developed countries is both possible and desirable,and thus should be pursued aggressively. 19 Such aggressive pursuit isreflected <strong>in</strong> tourist and health-care policies across the globe. This is true <strong>in</strong>the more developed countries (witness most recently the strategic plan forrecreat<strong>in</strong>g the Hawaiian tourist <strong>in</strong>dustry by striv<strong>in</strong>g to become the wellnesscenter of the Pacific 20 ). It is also true <strong>in</strong> oil-rich Middle Eastern countries(such as the Arab Emirates that have created a trade free zone for DubaiHealthcare City where the authorities promise there will be, “no red tape,hassle-free visas and a streaml<strong>in</strong>ed labour process, simplified licens<strong>in</strong>g andapplications.” 21 In addition, there will be no taxes on sales, <strong>in</strong>come, orcapital ga<strong>in</strong>s, only corporate tax for f<strong>in</strong>ancial <strong>in</strong>stitutions. There will beno restrictions on capital, no trade barriers or quotas, no need for a localpartner, just one-stop-shopp<strong>in</strong>g for government services (such as 24-hourvisa extensions and other permits).The public sector promotes medical tourism <strong>in</strong> all dest<strong>in</strong>ation countriesunder study. The Chilean authorities hope to “add surgical operations andcutt<strong>in</strong>g edge medical treatments to its traditional exports of copper, w<strong>in</strong>eand salmon.” 22 Cuba has a long history of promot<strong>in</strong>g medical tourism andas Benavides notes, “One of the ma<strong>in</strong> objectives of the Cuban governmenthas been to convert the country <strong>in</strong>to a world medical power.” 23 Indeed, thetreatment of foreign patients is the cornerstone of the government’s strategy.Across the globe <strong>in</strong> the Philipp<strong>in</strong>es, <strong>in</strong> 2005, the government announcedwith great fanfare that the Departments of <strong>Tourism</strong> and Health are team<strong>in</strong>gup to provide medical tourism. In India, the national health policy <strong>in</strong> 2002