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International Journal of Tourism Sciences
ISSN: 1598-0634 (Print) 2377-0058 (Online) Journal homepage: http://www.tandfonline.com/loi/rijt20
Lessons from Thai International Medical Tourism:Its Market Analysis, Barriers and Solutions
Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul & Jinsoo Hwang
To cite this article: Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul & Jinsoo
Hwang (2013) Lessons from Thai International Medical Tourism: Its Market Analysis,Barriers and Solutions, International Journal of Tourism Sciences, 13:2, 148-174, DOI:
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International Journal of Tourism Sciences, Volume 13, Number 2, pp. 148-174, 2013
Tourism Sciences Society of Korea. All rights reserved.
Lessons from Thai International Medical Tourism:
Its Market Analysis, Barriers and Solutions
Seongseop (Sam) Kim† Sejong University,
Nuntasaree Sukato
Dhurakij Pundit University,
Aswin Sangpikul
Dhurakij Pundit University,
Jinsoo Hwang
Dongseo University
ABSTRACT: Since the Thai government established a 5-year medical tourism
promotion plan in 2004, Thailand has become a global leading country as a international
medical tourism hub. Thus, this study attempted to assess Thailand’s medical tourism
market, which is the largest in the world in terms of the number of foreign medical
tourists and revenues. Strengths include strong government support, effective marketing policies, and high quality hospitals and infrastructure. Opportunities are globally
increasing senior population, quick medical treatments, and development of digital
technologies. However, weaknesses are found as having not cooperative teamwork
between public and private medical sectors, language barrier, distrust on medical
facilities or services, no regular quality assessment program for hospitals, and existence
of only a few internationally well-known Thai hospitals. Thailand is also committed to
threats such as uncontrollable global factors, intense competition in an Asian medical
tourism market. Pursuant to attract more foreign medical tourists to Korea, this study
suggests potentials of benchmarking Thai medical tourism market.
Keywords: Medical tourism; Thailand; Market analysis; SWOT; Competitiveness
† Corresponding Author. College of Hospitality & Tourism, Sejong University, South Korea.
E-mail: [email protected],
** Department of Marketing, Faculty of Business Administration, Dhurakij Pundit
University, Thailand. E-mail: [email protected],
** Department of Hotel and Tourism, Faculty of Arts, Dhurakij Pundit University, Thailand.
E-mail: [email protected]** Assistant Professor, Department of Hotel Management, College of Tourism, Dongseo
University, South Korea. E-mail: [email protected]
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Lessons from Thai International Medical Tourism:
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Introduction
Thailand has been one of the most popular tourism destinations in Asia for
many years, with most tourists coming from East Asia and Europe (Thailand
Tourism Report Q2, 2011). The country expected 18 million international
tourists in 2011, generating USD 23,000 million in revenue for the Thai
economy. The Tourism Authority of Thailand forecasts an increase in the
number of international tourists to 19.5 million and an increase in revenue to
USD 25,000 million in year 2012 (MCOT.Net, 2011). Tourism has played a
major role in the social and economic development of Thailand. During the past
several decades, the tourism sector has been the third-largest contributor to the
gross domestic product (GDP) of Thailand, accounting for as much as 9% of
revenue and more than 6.4 % of employment (Euromonitor International, 2011).
Thailand has actively marketed itself as a leisure tourism destination. The
two major public agencies that are responsible for tourism promotion in
Thailand are the Tourism Authority of Thailand and the Ministry of Tourism
and Sports, which was established in 2002. As shown in Table 1, Thailand
managed to increase the number of tourists, the average length of their staysand daily personal spending from 2009 to 2010. However, the increase in per
capita tourist spending was only 10.03% during this period, compared with a
12.63% increase in the number of tourists. This can be seen as evidence that
Thailand is becoming a mature destination that attracts international tourists.
Thailand has sought to increase both the numbers of tourists and tourism
revenue by reducing its dependence on leisure tourism. Instead, the country
aims to diversify its tourism market to include other types of travelers, such as
those traveling for medical reasons and business travelers (including
convention and exhibition travel). In 2004, the Thai government established a5-year plan to become a center for medical tourism. Thailand has seen itself as
a medical tourism hub of Asia and has officially placed this goal on its national
agenda (Reisman, 2010). To this end, various government entities have
increasingly cooperated with private health-care providers to promote the
country to the international medical tourism market.
The aim of this study is to identify Thailand’s medical tourism market,
which is the largest in the world in terms of the number of foreign medical
tourists and revenues. More specifically, this study has four objectives. First,
this study analyzes the Thai medical tourism market for foreign tourists.
Second, it conducts a SWOT (Strengths, Weaknesses, Opportunities, Threats)
analysis and explains this market in detail. Third, it finds solutions to the
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150 Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul, and Jinsoo Hwang
obstacles that impede the market. Fourth, the results of this study are helpful for
understanding the strategic advantages and disadvantages to maintaining the
country as the most popular destination for medical tourism.
Table 1. Tourism Arrivals in Thailand 2009 and 2010
Countries
of
residences
Tourism arrivals (tourists) Length of stay Per capita spending (USD/day)
2010 2009 Change% 2010 2009 Change% 2010 2009 Change %
East Asia 8,304,478 7,265,837 +14.29 5.90 5.68 +0.22 133.91 121.33 +10.37
ASEAN 4,595,893 4,074,668 +12.79 5.28 5.15 +0.13 126.84 114.83 +10.46
South Asia 985,098 809,300 +21.72 6.24 6.14 +0.10 145.06 128.40 +12.98
Europe 4,329,583 3,920,013 +10.45 14.54 14.24 +0.30 117.88 107.90 +9.25
The America 792,190 795,110 -0.37 13.45 13.52 -0.07 135.63 126.69 +7.06
Middle East 615,006 523,343 +17.51 9.98 9.94 +0.04 143.05 128.16 +11.62
Africa 121,816 107,837 +12.96 9.27 8.64 +0.63 144.68 130.59 +10.79
Oceania 788,229 728,401 +8.21 11.79 11.24 +0.55 144.84 129.66 +11.71
Total 15,936,400 14,149,841 +12.63 9.12 8.99 +0.13 128.71 116.98 +10.03
Source: Office of Tourism Development (2011). Tourist Arrivals in Thailand. Bangkok: Tourism Authority of
Thailand.
This study employed qualitative research methods that facilitate analysis of
the fluid relationships among the diverse perspectives of medical tourismstakeholders. Qualitative research methods are appropriate for situations in
which studies are not conducted actively or for contexts in which a new social
issue stimulates interest. This study primarily adopted a content analysis, or
hermeneutic, approach that involved a textual analysis of industrial or academic
texts pertinent to international and Thai medical tourism. The sources of the
content analysis included reports, newspapers, magazines, advertising materials,
websites, books, and company or government documents that address medical
tourism. This extensive body of texts addresses the strengths, weaknesses,
opportunities, and threats related to medical tourism and offer ways to
surmount obstacles identified in the analysis of the demand and supply sides of
medical tourism in Thailand.
Medical Tourism
Medical tourism is a newly emerging sector in the tourism industry and has
become an important industry in recent years. According to surveys and reports,approximately 2 million U.S. citizens participated in medical tourism in 2008,
and 6 million participated in medical tourism in 2010 (Kher, 2006). Youngman
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(2010) reported that the demand for medical tourism involves approximately 5
million people internationally per year, according to the top-25 countries that
receive medical tourists. Information on the demand for medical tourism differs
because exact statistics have not been collected on the medical tourism industry.
According to Youngman (2010), Thailand, India, and Singapore have been
successful in attracting some 2.2 million medical travelers. Medical tourists are
drawn to these countries because they provide less expensive but high-quality
medical services. In addition to these Asian countries, Colombia, Argentina,
Bolivia, Brazil, Costa Rica, Mexico, and Turkey are also establishing
themselves as health-care destinations.Studies related to medical tourism have only recently been conducted, and
there are less than 20 academic studies on the tourism journals. Before
exploring the literature, medical tourism should be defined. Earlier, Van
Sliepen (as cited in Hall, 1992) listed three components of health-care tourism:
staying away from home, health care as a main purpose, and staying in a leisure
setting. Therefore, the main purpose of health tourism is health care, and it
requires that the tourist leave home and stay in a location that provides health
services.
Mueller and Kaufmann (2001) defined medical tourism differently,distinguishing between wellness tourism and health-care tourism. They viewed
medical tourism is an activity to restore health, whereas wellness tourism as an
activity to prevent diseases. Health-care tourism is defined as an activity to both
prevent diseases and to restore health. A study of Henderson (2004) considered
medical tourism part of health-care tourism and included plastic surgery, spas,
and alternative therapy. Plastic surgery includes breast augmentation or
reduction and wrinkle removal. The spa and alternative therapy category
includes aroma therapy, yoga, and massage. Henderson noted that medicaltourism also includes medical services, such as cancer treatments, heart surgery
or organ transplants, and health exams. More recently, Connell (2006) viewed
medical tourism as a combination of medical care and the tourism industry. In
other words, medical tourism combines characteristics of the private medical
sector and characteristics of the public and private tourism industry. This view
is consistent with those of other researchers (Heung et al., 2010, 2011;
Horowitz and Rosenweig, 2007; Singh, 2008).
Medical treatments in medical tourism can be divided into three categories:
simple surgeries, such as dental operations and cosmetic surgery; complexsurgeries, such as cancer treatment, heart surgery, and organ or bone
replacement; and medical checkups or health screening. These operations
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152 Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul, and Jinsoo Hwang
require knowledgeable medical staff, state-of-the-art medical facilities, and
high-quality patient services on the supply side. On the demand side,
consumers of medical tourism must have the funds necessary to pay for the
high costs of medical treatment.
In addition to studies that have defined medical tourism or measure the
scale of the market, a few studies have attempted theoretical approaches or
applied tourism theories to the medical tourism field (Caballero-Danell and
Mugomba, 2007; Heung et al., 2010; Smith and Forgione, 2007: Ye et al.,
2008). A study by Smith and Forgione (2007) classified factors affecting the
choice of international medical tourism destinations and factors affecting thechoice of international medical facilities. The factors affecting the destinations
include economic conditions, political climate, and regulatory policies, and the
factors affecting medical facility include costs, physician training, quality of
care, and accreditation. A conceptualization of medical tourism by Caballero-
Danell and Mugomba (2007) indicated a market structure of medical tourism
that considered various stakeholders. Their model emphasized a need to explore
medical tourism-related issues between patients (customers) and medical
tourism destinations. They included customer benefits, branding, legal
frameworks, infrastructure, target markets, products, communication channels,operators, and social issues.
Ye et al.’s (2008) study explored the motivational factors and barriers to
medical tourism among potential tourists in Hong Kong. They divided medical
tourists’ motivations into four categories: push factors, pull factors, facilitating
factors, and other considerations. Their framework seems to be well organized.
For example, family, partners and companions were considered facilitating
factors. Other considerations included destination attributes, time, and service
attitude and quality. Most of these factors are likely to be pull factors or pushfactors. As a result, this classification is vague, and the motivations identified
do not include the most important components. A study by Heung et al. (2010)
approached medical tourism from both demand and supply perspectives. On the
demand side, potential medical tourists are informed about medical tourism
through advertising and distribution channels that influence the selection of the
medical staff, hospital, and country. The supply side of medical tourism
includes factors such as infrastructure and superstructure, promotion, quality,
and communication.
Several studies have focused on identifying the psychological states ofmedical tourists, such as satisfaction, motivations and constraining factors
(Hunter-Jones, 2005; Muller and Kaufmann, 2001; Sayili et al., 2007; Ye et al.,
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2011) and cultural differences (Yu and Go, in press). Hunter-Jones (2005)
explored the motivations for tourists seeking cancer treatment, and
Moghimehfar and Nasr-Esfahani (in press) examined the reasons why infertile
Muslim couples traveled to Muslim countries for treatment and their reasons
for medical travel. Yu and Go (2012) analyzed how Korean, Japanese, and
Chinese tourists approached medical tourism. Among other results, they found
that Japanese tourists preferred to travel abroad for major surgery, and Chinese
tourists preferred to travel abroad for minor surgery. Chinese respondents
showed a high interest in aesthetic services, whereas Japanese tourists indicated
a high interest in rehabilitation services.
Market Analysis of Thai Medical Tourism
As shown in Table 2, medical tourism in Thailand has dramatically
increased in recent years. The official figures indicate the number of
international arrivals for medical treatment and medical tourism spending. The
number of foreign patients and the amount of medical tourism spendingincreased by approximately 20% and 116% from 2007 to 2010, respectively
(Travel and Tourism Medical Tourism, 2011), and the majority of medical
tourists came from Europe, Asia, and the Middle East (Health and Wellness
Tourism-Thailand, 2011).
Table 2. Number of International Medical Tourists and Spending from 2007 to 2010
Year Number of medical tourists Medical tourism spending (USD)
2010 1,580,000 635,000,000
2009 1,260,000 487,000,000
2008 1,360,000 390,200,000
2007 1,325,000 294,200,000
Source: Travel and Tourism Medical Tourism (2011). Global medical tourism briefing: a fast growing niche
market. Euromonitor International, pp. 1-36.
This increase has been attributed to the high quality of care offered by
highly trained doctors and nurses, the use of sophisticated medical technologies,
and a high level of hospitality offered to clients (Connell, 2011). In addition,
the cost of medical treatment in Thailand is significantly lower than the cost of
similar treatment in developed economies. As a result, individuals fromdeveloped countries who are uninsured, underinsured, or wish to receive
uninsurable medical procedures actively seek opportunities to receive medical
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154 Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul, and Jinsoo Hwang
treatment overseas where the cost is lower and the waiting time is significantly
shorter (International Medical Travel Journal, 2010). Table 3 compares the
costs of medical treatment provided in the U.S., Thailand, Singapore, Costa
Rica, India, and Mexico.
Table 3. Comparison of Medical Treatment Costs
Treatment USA Thailand Singapore Costa Rico India Mexico
Angioplastry 61,500 14,500 14,500 11,000 10,500 16,500
Heart bypass 127,000 13,000 22,500 29,000 11,000 26,500
Heart valve 170,000 11,500 15,500 18,000 12,000 21,500
Hip replacement 44,500 13,000 13,500 13,500 10,500 17,000
Hysterectomy 20,000 5,000 7,000 5,000 5,000 7,000
IVF 14,000 No data 9,500 No data 5,000 No data
Mastectormy 24,000 10,000 14,500 No data 9,000 10,000
Source: SureryPlanet (2011). Comparison of medical treatment costs. Retrieved December 17, 2011.
www.surgeryplanet.com
Despite these impressive statistics, attracting medical tourists to developing
countries is not without its challenges. Studies have suggested that the majority
of people in developed countries tend to believe that developing countries donot have high standards of medical care and hygiene (Heung et al., 2011; Singh,
2008). However, there has been little published research on the specific issue of
consumer behavior in the context of medical tourism. As a result, managerial
decisions on medical tourism in host countries tend to be based on intuition and
information from relatively unreliable literature. However, some reliable
research has focused on the reasons why medical tourists travel abroad for
medical treatment, such as finances, waiting times, and the unavailability of the
desired treatment in the medical tourists’ countries of residence (Heung et al.,
2010, 2011; International Medical Travel Journal, 2010).In recognition of the potential for further growth in medical tourism, the
Thai government decided to promote the country as a hub for medical tourism
in 2004. The government aimed to emphasize two categories: medical
treatment, such as conventional medical operations and treatment, and health-
and-beauty therapy, including traditional therapies for general well-being, such
as Thai massages and spas (Euromonitor International, 2011). Thailand has
since aggressively promoted both categories of health-tourism products to a
range of potential medical tourists, including general tourists, health tourists,
diplomats in Thailand and neighboring countries, and expatriates in Thailand
and neighboring countries. The country has accomplished this promotion by
leveraging its advanced therapeutic technologies, the quality of its medical
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personnel, its price advantages, and its reduced waiting times (Ramirez de
Arellano, 2007).
According to Euromonitor International (2011), the Thai government
continues to develop medical services to meet international standards with the
ultimate aim of making Thailand a major medical tourism hub in Asia, a
campaign that has been successful since its inception in 2004. The promotion of
medical tourism in Thailand is expected to continue. For instance, the Thai
government planned to introduce a one-stop shop for various medical spas at
Suvarnabhumi Airport in 2011. This project is expected to be the first such
medical spa in the world and will provide medical information and services tointernational tourists. Medical tourism is growing impressively, with sales of
Baht 2.1 billion (USD 70 million) and an increase in value of 22% in 2010.
However, the number of medical tourism outlets remains low; only 30 medical
tourism providers operated in Thailand in 2010.
The major markets for Thai medical tourism are the U.S., Japan, the U.K.,
and oil-producing Middle Eastern countries. Medical tourists travel to Thailand
for treatment of general medical illnesses, cosmetic surgery, and dentistry.
These individuals represent a high-spending tourist segment, with each person
spending approximately AUD$1000 per visit (including non-operativetreatments) (Jotikasthira, 2010). Private Thai hospitals offer one-stop services
for medical tourists, including immigration services, airport offices, foreign
market offices, and interpreting services (Strategic and Marketing Magazine,
2007 cited in Jotikasthira, 2010). To gain the confidence of medical tourists
from developed countries, private Thai hospitals have also affiliated with
health-care institutions and medical schools with good international reputation.
One of the leading private Thai hospitals that competes for foreign patients
is Bangkok General Hospital, which has divided its operations among severalhospitals that specialize in various diseases, including cardiology and cancer,
by investing considerable resources into sophisticated equipment. Medical
schools utilize these hospitals for clinical research, and the hospital has become
associated with significant research work in major academic seminars and
publications. Another leading Thai hospital is Piyavet Hospital, which has
established units that specialize in cardiology, neurology, and gynecology
(Strategic and Marketing Magazine, 2007 cited in Jotikasthira, 2010).
Bumrungrad may be the Thai hospital with the best reputation in the
international medical tourism market. This hospital is considered as havinghigh medical standards by international patients and is recognized worldwide
for quality through the Joint Commission International (JCI) accreditation. This
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hospital has 484 beds and treats more than 420,000 international patients each
year from more than 200 countries (Bumrungrad International Hospital, 2011).
Its main 22-story building and 700 parking spaces were opened in 2008 to
comply with U.S. hospital building and safety standards. The hospital has 2,100
medical personnel, most with international training and certification
(Bamrungrad International Hospital, 2011). In addition, 200 physicians are U.S.
board certified (Medical Tourism in Thailand, 2011), and a team of 900 nurses
assists with patient care. The hospital offers a variety of facilities, including
interpretation in more than 10 languages, and uses Global Care Solutions’
Hospital 2000, a sophisticated health information technology system. Thissoftware is designed to recognize and prevent dangerous drug interactions,
store patient records electronically and fully integrate all areas of patient
management and hospital operations. The hospital staff assists patients with
travel arrangements, airport pickup, interpreters and lodging, as needed.
Seventy-five percent of Bumrungrad’s patients pay cash for their services
(Bumrungrad International Hospital, 2011).
Thailand is attempting to differentiate itself from competing destinations
without indulging in intense price-discounting by moving into alternative areas
of tourism, such as medical tourism. Thailand is well suited for this type oftourism because of its advanced medical services, comparative costs, and
traditional Thai hospitality (Strategic and Marketing Magazine, 2007 cited in
Jotikasthira, 2010). Because medical tourism is a relatively new segment of
tourism for Thailand, it requires considerable further development. Two of the
key tourism agencies in Thailand, the Tourism Authority of Thailand and the
Ministry of Tourism and Sports, have yet to integrate their efforts to promote
the country as a medical tourism destination as they have successfully done in
the past with the business and leisure tourism sectors (Rittichainuwat et al.,2001). This delay is mainly because the promotion of the country as a medical
tourism destination poses novel challenges in aligning the destination image of
Thailand with the motivations and decision-making processes of prospective
medical tourists. To provide a foundation for the further development of
Thailand as a medical tourism market, the key behaviors of medical tourists,
which are likely to be fundamentally different from those of leisure tourists,
should be understood, especially with regard to destination choice.
Countries wishing to succeed in medical tourism must study the
environment and implement a strategic management process to maximize the potential of existing assets, thereby maximizing the gains. Below we discuss
some of the strengths, weaknesses, opportunities and threats for Thailand’s
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medical tourism industry.
Results of SWOT Analysis
Strengths
Strengths are inherent abilities that an organization can use to gain a
strategic advantage, such as superior research or a new development within a
service industry. The following five strengths have been identified in Thai
medical tourism. First, Thailand provides a wide range of quality medical
services that are affordable when compared with medical services in the West.
Thai hospitals offer world-class treatments in nearly every medical sector,
including cardiology and cardiothoracic surgery, joint replacement, orthopedic
surgery, gastroenterology, sex reassignment, plastic surgery, dentistry, and
other areas. For heart valve surgery, the medical treatment costs are 15 times
cheaper than in the U.S., 1.35 times cheaper than in Singapore, and 1.9 times
cheaper than in Mexico (SureryPlanet, 2011; Youngman, 2010).
Second, the Thai government has provided strong support throughcoordination because it quickly recognized the need for coordination across
various sectors to maximize the industry’s potential. Therefore, the government
developed a common vision, strategic direction, and shared objectives for
various sectors to facilitate better coordination among the concerned parties,
including the public sector (e.g., the Ministries of Health, Tourism, and Foreign
Affairs and Tourism Authority of Thailand (TAT) and the private sector (e.g.,
Thai Airways and Bangkok Airways).
Third, Thai medical tourism has continuously implemented effective
marketing programs. For example, the TAT has played a key role in providing
integrated marketing of Thai tourism abroad. The TAT has more than 18
offices worldwide and has won several international awards for developing
excellent marketing campaigns targeted at tourists. The TAT has been
extremely successful in marketing Thai health services as well.
Fourth, hospitals that specialize in medical tourism focus on hospitality to
provide a superior consumer experience and to build brand equity. For example,
the Bumrungrad Hospital, which is operated by Bumrungrad International
Limited, has 102 clinics in Thailand and other nations. This internationalhospital provides hospitality services that include transportation from the
airport, interpreters for 18 languages, and an in-house Starbucks and
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158 Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul, and Jinsoo Hwang
McDonald’s to cater to tourists from the U.S. and the U.K. The hospital is
eager to promote itself by offering loyalty cards, in-flight magazines, free
mileage through alliances with airlines and overseas representatives’ offices in
Europe, North America and Asia. In addition, Bumrungrad Hospital offers
amenities like those in a luxury hotel, such as food prepared by professional
chefs. The hospital cares for 3,000 patients a day, with average treatment times
of 45 minutes and waiting times of 17 minutes (Bumrungrad International
Hospital, 2009, p. 1). Another example is Bangkok Airways, the largest private
airline in Thailand, which owns three hospitals: Bangkok Hospital Medical
Center, the Bangkok Hospital Group, and Samitivej Hospital. The airline offersfrequent flyer points to patients and operates a wellness center and golf clubs.
Fifth, the medical infrastructure has also been improved. Thailand built a
strong health infrastructure during the economic boom by encouraging private
and public participation. According to the World Tourism Organization,
Thailand will be able to manage expansion only if it matches the increase in
visitors with a massive increase in accommodations and in the airport and
public transportation infrastructure. Thailand has already taken steps to
accommodate the expected growth with the new Bangkok Mass Rapid Transit
(MRT) metro system, which opened in 2004 (Thailand Tourism Report Q2,2011).
Weaknesses
A weakness is an inherent limitation or constraint that creates strategic
disadvantages. An example of a weakness is overdependence on a single
service line, which is potentially risky for a service industry in times of crisis.
Seven weaknesses have been identified in Thai medical tourism. First, there is a
lack of uniform pricing across hospitals in the kingdom. Thai hospi¬tals do not
offer fixed pricing, although prices are typically lower than in the West
(Herrick, 2007). Second, Thai medical services are limited due to the language
barrier. English is barely used in Thailand, making it difficult for tourists to
communicate with health professionals.
Third, Thailand is believed to be unhygienic and dangerous because of the
presence of fatal diseases, such as AIDS, cholera, and local epidemics. These
concerns lead potential tourists to distrust medical facilities or services in
Thailand. Fourth, although the Thai government evaluates hotels andrestaurants based on the quality of their service or facilities, there is no regular
quality assessment program for hospitals that treat medical tourists. An
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evaluation program for medical hospitals should be introduced to increase
credibility with potential foreign medical tourists.
Fifth, government agencies in charge of medical tourism are not well
integrated because medical tourism is dispersed among agencies in the
Ministries of Health, Tourism, and Foreign Affairs and the Tourism Authority
of Thailand (TAT). This situation leads to a delayed response in the event of a
medical accident because there is no central authority to address the situation,
and no agency wants to take responsibility for a complicated medical issue. In
addition, this decentralization delays the development of medical tourism
policies, the implementation of rapid action plans, and research. To addressthese concerns, a single government agency should control and integrate these
public and private roles together to further speedy decision making process.
Sixth, Thailand has a shortage of capable doctors and other medical staff
(Connell, 2006, p. 149) because patients requiring serious operations tend to
travel to more medically advanced countries. Current Thai medical procedures
include dentistry, gender reassignment, health exams, aesthetic treatments,
transplant operations and cardiac surgery. A lack of expert medical staff cannot
attract patients to pay expensive operation fees. Thus, the tourism industry
currently relies on non-surgical approaches, such as massages, saunas, bathingor alternative medical procedures that do not generate high profits.
Seventh, only a few well-known Thai hospitals, such as Bumrungrad
Hospital, Samitivej Hospital, Bangkok Hospital, Phuket Hospital and Dusit
Medical Services, Phuket and Koh Samui, are capable of attracting foreign
medical tourists. These are JCI-accredited hospitals and are mainly located in
Bangkok, Phuket and Pattaya. However, the medical quality in most public
clinics is not sufficiently high to promote these clinics to medical tourists. In
addition, waiting times in Thailand’s public clinics tend to be long becausecompetent medical staff move to private clinics that offer better salaries or that
compensate for their liability risk.
Opportunities
An opportunity is a favorable condition in a service industry that allows a
tourism destination to consolidate and strengthen its position. The following
eight opportunities were identified for Thai medical tourism. First, the aging
population has dramatically increased. Aging Baby Boomers, those born soonafter the end of World War II, have redefined the conventional view of the
elderly (Kotler, Bowen, and Makens, 2010). Despite their chronological age,
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160 Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul, and Jinsoo Hwang
Baby Boomers continue to live active lives and to care about their appearance.
These people, who often have high disposable incomes, are increasingly likely
to consume aesthetic products and seek cosmetic services (Yu and Go, 2012).
According to a survey, there are approximately 77 million aging Baby Boomers
in the U.S. alone. Of this population, 12% are uninsured (Fraser Institute, 2011).
In the U.S., these elderly patients are not receiving the care they need and
deserve, partly because their health-care system has low reimbursement rates,
focuses on treating short-term health problems rather than managing chronic
conditions and lacks coverage for preventive services or for health-care
providers’ time spent collaborating with a patient’s other providers. Healthtourism, which offers a lower price and an included holiday package, is one of
the better alternatives for Baby Boomers to obtain the medical care they need.
Second, there is shortage of supply in National Health Systems in countries
such as the U.K. and Canada. Waiting times to obtain medical attention have
become a significant problem in many Western countries. For example,
according to new research, a typical Canadian seeking surgical or other
therapeutic treatment had to wait 18.3 weeks in 2007, an all-time high (Fraser
Institute, 2011). In another report, the median waiting time for knee
replacement after the operation was planned was three weeks in the UnitedStates and eight weeks in Canada. In the U.K., mean waiting times for persons
admitted for inpatient surgery, such as hip and knee replacement, is
approximately 200 days (Siciliani and Hurst, 2003). In contrast, Thailand offers
medical treatments in a few days.
Third, there is a demand for retirement homes for elderly people, especially
Japanese people. The Japanese constitute the largest proportion of medical
tourists to Thailand, although patients from the United States, the U.K., and the
Middle East also arrive in significant numbers. Thailand’s competitiveadvantage in this sector is pricing (Travel and Tourism Medical Tourism, 2011).
Corporations are another target of medical tourism (Moody, 2007; Smith and
Forgione, 2007). Many companies must pay large medical bills as part of the
fringe benefits they provide to their employees. In many cases, these bills
involve complicated and costly medical procedures. It can be an attractive
option for these firms to refer employees who require complicated procedures
to offshore medical service providers. Retirees who choose to spend their lives
as long-stay tourists in foreign countries can also be targeted as potential
customers of medical tourism (Norra, 2007; Pedersen, 2007). Japan encouragesits citizens to retire abroad, and these retirees often require frequent medical
care. In addition, Thailand has deliberately sought a Japanese market because
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many doctors have been trained in Japan, and nurses and other staff have been
taught to speak Japanese (Connell, 2006).
Fourth, the increased demand for cosmetic services in Western countries is
not restricted to the older population; for example, Botox injections have
become popular among young adults and teenagers (Healy, 2008). This
increased demand for cosmetic surgery pervades all age cohorts, but meeting
this demand is usually outside the scope of government policies and insurance
coverage (Norra, 2007). Prospective medical tourists choose to obtain overseas
treatment (both obligatory and elective) because these treatments may be
unavailable or difficult to access (or even illegal) in their countries of residence(Jones and Keith, 2006).
Fifth, globalization makes it easy for patients to travel to other countries.
The effect of these demand and supply factors in medical tourism is facilitated
by significant changes in the global business environment in recent years
(Heung et al., 2010). These changes include increasing globalization and trade
liberalization, enhanced communication through digital technologies,
increasing economic deregulation in developing countries, and a greater
propensity for Westerners to travel abroad (Awadzi and Panda, 2005; Fletcher
and Brown, 2002). As the demand for overseas medical treatment has increased, prospective medical tourists no longer perceive traveling abroad as difficult.
Higher levels of education, greater disposable income, and increased media
exposure to foreign countries make Westerners more likely to travel to
developing countries (Delinsky, 2005; Siciliani and Hurst, 2003). These
lifestyle and demographic changes in developed economies, together with the
increasing ease of international air travel, have increased the demand for
medical tourism.
Sixth, digital technology has played a crucial role in enabling real-timecommunication and diffusion of information. Prospective medical tourists are
therefore increasingly knowledgeable about medical procedures and the
availability of various services to address their health problems (Awadzi and
Panda, 2005; Caballero-Danell and Mougomba, 2006; Fletcher and Brown,
2002). In addition, digital technology has facilitated networking between both
providers and consumers of health-care services across borders (Jones and
Keith, 2006).
Seventh, free-trade liberalization and deregulation has facilitated the flow
of production factors across borders, including people, medical supplies, andtherapeutic devices (Percivil and Bridges, 2006). Free-trade agreements with
more countries increase the importation of medical supplies and devices
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162 Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul, and Jinsoo Hwang
because of deregulation. In addition, improved travel logistics make the
transportation of people and equipment faster and more accessible (Fletcher
and Brown, 2002; Horowitz and Rosenweig, 2007).
Finally, prices for medicine, operations and tourism in Thailand are lower
than prices in developed countries. For example, an MRI in Thailand costs
between $200 and $300, compared with more than $1,000 in the United States
(Herrick, 2007). In fact, the comparative cost advantage in Thailand allows
private health-care providers to design medical services that are very attractive
to medical tourists while remaining much cheaper than similar procedures in
developed countries or other competitive medical tourism countries.
Threats
A threat is an unfavorable condition in an industry’s environment that
creates a risk or potential damage to the industry (Kotler and Keller, 2006). The
following threats were identified in this study. First, threats may include
uncontrollable factors, such as internal political instability, disease epidemics,
natural disasters, and international conflicts with neighboring countries (Bank
of Thailand, 2009). For instance, internal political tensions led to a blockade ofthe Suvarnabhumi and Don Muang airports, which resulted in a significant
decrease in tourist numbers in the second half of 2008 (Monetary Policy Group,
2009). Sudden Acute Respiratory Syndrome (SARS) spread throughout Asia in
2003; the virus infected 1,755 people in Hong Kong and killed 299. These
political or otherwise unexpected incidents have damaged Thailand’s reputation
as the top medical tourism destination by discouraging potential patients from
visiting, reducing the credibility of medical clinics, and casting doubt on the
Thai government’s ability to solve problems.
Second, Thailand is in intense competition with neighboring countries, such
as Malaysia, Singapore, and India (Choo, 2002; Reisman, 2010). Singapore,
located approximately 1,000 miles south of Bangkok, has its own advantages:
English is widely spoken, and it is easy for medical personnel to communicate
with foreign patients. Furthermore, the number of JCI-accredited hospitals in
Singapore and Thailand are approximately equal; Singapore has 14 hospitals
accredited by the JCI, whereas Thailand has 16 JCI-accredited hospitals (Joint
Commission International, 2011). Moreover, India is competing with Thailand
in terms of medical treatment prices and quality (Herrick, 2007; Singh, 2008). New players, such as Malaysia and South Korea, also represent competition
in this industry. Strong financial and institutional support from governments
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has been leveraged to enhance the development of this industry. In 2005,
Malaysia’s Ministry of Health (MOH) was given a special allocation of RM
1.65 million by the Finance Ministry for the Malaysian Society for Quality in
Health (MSQH) for the accreditation of private hospitals (Health and Medical
Tourism, 2008). The MOH also organized a workshop on branding and quality
of services for 35 private hospitals in the country in December 2006, followed
by road tours and promotional trips to neighboring countries (Malaysian
Employers Federation, 2008).
Figure 1. Overall Evaluation and Strategies to Promote Medical Tourism in Thailand
Strategies to Solve the Current Problems
Collaboration between Public and Private Sectors
Medical tourism comprises three basic aspects: hospital and health services,
hotels, and travel and leisure. Thus, with attractive policies and appropriate
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164 Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul, and Jinsoo Hwang
marketing strategies, this emerging industry can provide a significant
opportunity for economic growth and infrastructure development for
participating countries. To achieve this goal, host countries must enact a policy
framework that is attractive to consumers worldwide. The framework must
include strategies to encourage customers to travel to the host countries to
receive the health-care treatment they desire. Cooperation between the public
and private sectors in health tourism in Thailand should be promoted (Thailand
Tourism Report Q2, 2011).
The public sector strategies comprise policies and regulatory initiatives,
such as quality standards for providers of health tourism services,improvements in immigration services, the development of relevant
infrastructures, the execution of immense promotional campaigns and reviews
of taxation and incentives for hospitals involved in medical tourism (Ramirez
de Areallano, 2007). Other strategies include increasing the supply of high-
quality human resources, such as medical specialists and professional nurses.
Acceleration of International Certification Achievement
Quality is a pivotal element in promoting medical tourism. Health-care providers in developing countries attempt to ensure that the quality of care they
provide is comparable to that in developed countries by obtaining accreditation
from recognized authorities (Chow, 2009; Marlowe and Sullivan, 2007). An
important organization in the regulation of health-care standards is the Joint
Commission on Accreditation of Health-care Organizations (JCHO), which
regulates the practice of health-care providers through an accreditation system
that requires renewal of registration every three years through inspection by the
staff of the JCHO (Pedersen, 2007).
Although it is quite costly for health-care providers to obtain accreditation
from the JCHO, most are willing to bear the additional cost because of the large
number of patients who are willing to pay more for properly accredited care
(Pedersen, 2007). In addition, an Association of Southeastern Asian Nations
(ASEAN)-wide system for the accreditation of high-quality hospitals could be
developed, which would address the concerns of public and private insurers in
covering medical expenses incurred in other ASEAN countries (M2Presswire,
2008).
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Conviction in Legal Practices Regarding Medical Services
In addition to reassurance regarding the quality of care provided by well-
qualified surgeons, prospective patients and insurance companies are concerned
about the possibility of post-operative complications because doctors in the
patients’ countries of residence might be reluctant to take professional and legal
responsibility for subsequent complications (Marlowe and Sullivan, 2007;
Reisman, 2010). To provide reassurance on this point, surgeons in developing
countries must assume professional and legal responsibility for all patients on
whom they operate, including post-surgical recuperation periods (Health and
Medical Tourism, 2008; Herrick, 2007).
The Medical Tourism Association (MTA), which is based in the United
States, was created to establish standards for regulating the quality of care and
ethical practices in medical tourism destinations (Pedersen, 2007). The
checklist for prospective medical tourists to evaluate medical tourism
destinations includes the following aspects: facilities and infrastructure;
qualifications and certifications of doctors; success and failure rates; mortality
and morbidity rates; and due diligence (whether patients deal directly with
health-care providers) (MacReady, 2007). Furthermore, the development ofrules regarding the privacy and confidentiality of patient information would
help to assure patients that foreign hospitals treat such information responsibly.
Well-planned Development for Infrastructure
Relevant infrastructure also requires attention. Existing infrastructure
should be upgraded and improved, and countries must consider expanding their
networks. Areas that should be continued or enhanced include the restoration
and conservation of historical sites, upgrading of tourism facilities andinfrastructure, beautification of tourism sites, development of medium-priced
hotels and provision of public amenities, pedestrian walkways and landscaping
of tourist spots (Macready, 2007). Various ministries of the government are
responsible for these projects.
Human Resource Planning for the Medical Industry
The government should not ignore the demand for professionals in the
health-care sector. Changes may be necessary in policies in postgraduate
medical education and nursing education to meet the growing need for highly
skilled workers.
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The qualifications of surgeons should also be reinforced (Awadzi and
Panda, 2005; International Medical Travel Journal, 2010). For example,
promotions for a hospital in Thailand that announce that it has more than 200
American-trained surgeons (and provides interpreting services in more than 26
languages) are very appealing to tourists (Awadzi and Panda, 2005, Service
Promotion Department, 2007; Ramirez de Arellano, 2007).
Improvement of Promotional Strategies
In Thailand, it is argued that the country’s reputation as a tourist destinationhas boosted medical tourism to such an extent that at the Bangkok Dental Spa,
which treated about 1,000 overseas patients in its first year, 90 percent of the
patients already knew Thailand and loved it as a holiday destination (Levitt,
2005). General tourism provides the basis for medical tourism. Thailand
primarily draws patients from Japan, Brunei, Singapore, Taiwan, Pakistan,
China and Bangladesh (Connell, 2011). Because private medical care depends
on the market, a suitable market should be sought for optimum profit.
Therefore, there is a need to focus on the clients’ countries of origin. Thailand
should recognize that a strategy that works for attracting patients from onecountry may not work for patients from another country because the patients’
expectations and needs are different.
Therefore, the industry should recognize this diversity in the medical
tourism patient population and devise strategies to tap into niche markets
(Percivil and Bridges, 2006; York, 2008). If the host country focuses on clients’
specific characteristics, the host will be able to provide exactly what these
clients require. In turn, the clients will be satisfied and will be more likely to
return to the host country for other treatments or for vacations. These clients
may also recommend the host country to their family and friends.
Focus on Customer Satisfaction
Treatment and services must be packaged so that patients are satisfied and
must include not only the medical treatment but also information, accessible
transportation, lodging and tourism. Everything should be planned in detail.
The more welcomed the patients feel, the more satisfied they will be. Further,
language plays a pivotal role in this aspect of the service. Everything should bemultilingual, from the promotional website about the participating hospitals to
in-house interpreter services. An example of this approach is practiced in the
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Bangkok Hospital International Medical Center. This hospital offers services in
26 different languages (e.g., English, Chinese, Japanese, and Dutch),
recognizes cultural and religious dietary restrictions and has a special wing for
Japanese patients (Danish Trade Council of the Royal Danish Embassy
Bangkok (2006).
Establishment of Strategic Alliances and Networks
Medical destinations can seek to allay the safety concerns of potential
medical tourists by establishing relationships with health-care providers in thecountries of origin. For example, some American medical insurance companies,
such as Optmed Health Group and Blue Cross/Blue Shield, now provide special
programs for self-insured employers and policy holders to receive medical care
at Bumrungrad Hospital in Thailand (Moody, 2007).
Discussion
Thailand has actively marketed itself as a destination in the leisure tourism
market for many years. The industry has shown signs of entering the maturity
stage in terms of per capita spending and the absolute number of tourists.
Therefore, Thailand has sought to enhance both its tourism numbers and
revenue by reducing its dependence on leisure tourism and diversifying its
tourist market to include other types of travelers, such as medical tourists.
The aim of this study was to analyze Thai medical tourism for foreign
tourists, to understand this market in more detail, and to identify ways to
overcome some of the obstacles that affect this market. The findings show the
successful factors in medical tourism in Thailand. In this study, SWOT analysis
was adopted as exploratory method to investigate the market of Thai medical
tourism. The analysis considered the strengths, weaknesses, opportunities, and
threats of this market. Consequently, this study has important implications for
the key players in the medical tourism industry in Thailand.
The following recommendations are made to remove the obstacles to the
development of medical tourism in Thailand. First, quality must be considered
a critical issue. Thai hospitals should focus on two areas to increase the numberof foreign patients in medical tourism: providing qualified physicians and
addressing post-operative complications. Thai hospitals targeting foreign
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168 Seongseop (Sam) Kim, Nuntasaree Sukato, Aswin Sangpikul, and Jinsoo Hwang
patients should obtain accreditation from the Joint Commission on
Accreditation of Health-care Organization (JCHO), which regulates the practice
of health-care providers through an internationally accepted accreditation
system. In addition, joint ventures and alliances with overseas health
institutions and insurance players should be pursued to develop a significant
advantage and leadership position in the industry.
Second, foreign languages can be a problem in communication throughout
the treatment and recuperation process. To achieve an international medical
service standard, Thai hospitals should employ medical staff who can speak
foreign languages. The language barrier is not confined to English, although thedemand for other languages will depend upon the target market. The languages
that are commonly used in this business include English, Mandarin Chinese,
and Japanese. Finally, relevant infrastructures require particular attention. The
existing infrastructure must be upgraded and improved, and new ones must be
considered. These tasks are the responsibility of governmental agencies,
including the Ministry of Public Health, the Ministry of Transport, the Ministry
of Tourism and Sports, and the Ministry of Information and Communication
Technology.
Globalization has made health tourism possible and has contributed to itsgrowth. For participating countries, this new industry generates billions of
dollars a year and is worth developing. In the ASEAN region, Thailand is
making a mark on the medical tourism industry due to its availability of
medical and technical expertise, high-quality infrastructure, comparative cost
advantage, and scenic beauty. However, competition is becoming more intense,
and future success will largely be determined by the development and
implementation of a joint strategy by various players in the industry.
Acknowledgments: This work was supported by the National Research
Foundation of Korean Grant funded by the Korean Government (NRF-2011-
332-32A-B00277).
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Received January 11, 2013
Revised July 17, 2013
Accepted July 30, 2013
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