universiti tun hussein onn malaysia status …eprints.uthm.edu.my/8802/1/wong_lai_yoong.pdf ·...

47
UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS CONFIRMATION FOR MASTER`S THESIS DEVELOPMENT OF A HOLISTIC INTERNET MARKETING STRATEGY FRAMEWORK (IMSF) IN PROMOTING MEDICAL TOURISM INDUSTRY (MTI) IN MALAYSIA ACADEMIC SESSION : 2015/2016 I, WONG LAI YOONG, agree to allow this Master`s Thesis to be kept at the Library under the following terms: 1. This Master`s Thesis is the property of Universiti Tun Hussein Onn Malaysia. 2. The library has the righ to make copies for educational purposes only. 3. The library is allowed to make copies of this report for educational exchange between higher educational institutions. 4. ** Please Mark (√) CONFIDENTIAL (Contains information of high security or of great importance to Malaysia as STIPULATED under the OFFICIAL SECRET ACT 1972) RESTRICTED (Contains restricted information as determined by the organization/ institution where research was conducted) FREE ACCESS Approved by, (WRITER`S SIGNATURE) (SUPERVISOR`S SIGNATURE) Permanent Address: DR. NORALFISHAH BINTI SULAIMAN NO 348, LORONG 22, AULONG BARU , 34 000, TAIPING, PERAK. Date : ___________________________ Date: ____________________________ NOTE: ** If this Master`s Thesis is classified as CONFIDENTIAL or RESTRICTED, please attach the letter from the relevant authority/organization stating reasons and duration for such classifications.

Upload: phamduong

Post on 02-Aug-2019

217 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

UNIVERSITI TUN HUSSEIN ONN MALAYSIA

STATUS CONFIRMATION FOR MASTER`S THESIS

DEVELOPMENT OF A HOLISTIC INTERNET MARKETING STRATEGY

FRAMEWORK (IMSF) IN PROMOTING MEDICAL TOURISM INDUSTRY

(MTI) IN MALAYSIA

ACADEMIC SESSION : 2015/2016

I, WONG LAI YOONG, agree to allow this Master`s Thesis to be kept at the Library under the

following terms:

1. This Master`s Thesis is the property of Universiti Tun Hussein Onn Malaysia.

2. The library has the righ to make copies for educational purposes only.

3. The library is allowed to make copies of this report for educational exchange between higher

educational institutions.

4. ** Please Mark (√)

CONFIDENTIAL (Contains information of high security or of great

importance to Malaysia as STIPULATED under the

OFFICIAL SECRET ACT 1972)

RESTRICTED (Contains restricted information as determined by the

organization/ institution where research was conducted)

FREE ACCESS

Approved by,

(WRITER`S SIGNATURE) (SUPERVISOR`S SIGNATURE)

Permanent Address: DR. NORALFISHAH BINTI SULAIMAN

NO 348, LORONG 22,

AULONG BARU ,

34 000, TAIPING, PERAK.

Date : ___________________________ Date: ____________________________

NOTE:

** If this Master`s Thesis is classified as CONFIDENTIAL or RESTRICTED,

please attach the letter from the relevant authority/organization stating reasons

and duration for such classifications.

Page 2: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

This thesis has been examined on date December 14, 2015 and is sufficient in

fulfilling the scope and quality for the purpose of awarding the Degree of Master of

Science in Real Estate and Facilities Management.

Chairperson:

PROF. MADYA DR. NOR HAZANA BTE ABDULLAH

Faculty of Technology Management and Business

University of Tun Hussein Onn Malaysia

Assistant Chairperson:

DR. MOHD HAFIZAL BIN ISHAK

Faculty of Technology Management and Business

University of Tun Hussein Onn Malaysia

Examiners:

DR.MOHD LIZAM BIN MOHD DIAH

Faculty of Technology Management and Business

University of Tun Hussein Onn Malaysia

DR. SHAFIE BIN MOHAMED ZABRI

Faculty of Technology Management and Business

University of Tun Hussein Onn Malaysia

DR. NORBAYA BTE AB RAHIM

Faculty of Architecture, Planning and Surveying

University of Teknologi Mara (UiTM)

Page 3: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

DEVELOPMENT OF A HOLISTIC INTERNET MARKETING STRATEGY

FRAMEWORK (IMSF) IN PROMOTING MEDICAL TOURISM INDUSTRY

(MTI) IN MALAYSIA

WONG LAI YOONG

A thesis submitted in fulfilment of the requirement for the award of the Degree of

Master of Science in Real Estate and Facilities Management

Faculty of Technology Management and Business

Universiti Tun Hussein Onn Malaysia

JANUARY 2016

Page 4: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

ii

DECLARATION

I hereby declare that the work in this thesis is my own except for quotations and

summaries which have been duly acknowledge.

Student : ................................................................

WONG LAI YOONG

Date : ................................................................

Supervisor : ...............................................................

DR. NORALFISHAH BINTI SULAIMAN

Page 5: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

iii

DEDICATION

The precious help and invaluable support of family, supervisor, lecturers and friends

must be fully appreciated, especially to:

My beloved parent,

Madam Chong Kian Chew & Mr. Wong Weng One

My grandma,

Madam Yew Ah Lin

My uncle and aunty,

Chong Seng Heng & Wong Mee Chee

Wong Beng Soon & Wong Mei Yan

My lovely siblings,

Yee Ling, Yew Wah, Yeet Kheng, Lai Phing & Yee May

My internal and external panels,

and my dearest friends, especially

Tan Swee Hong, Lai Mei Chien

Page 6: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

iv

ACKNOWLEDGEMENT

The MofREFM process over the past two years has been a challenging but a rewarding

journey, and it would not have been possible without the support and guidance of a

number of people.

First and foremost, words cannot express how appreciative I am of my MOTHER,

Kian Chew and FATHER, Weng One, for their encouragement, sacrifices and patience

made during the journey. Their endless love kept the candle of hope alight inside me

at the most difficult times and hardships. My thanks also go to my UNCLE, Seng Heng

and AUNTY, Mee Chee, who gave me emotional support and encouraged me in

countless ways during the journey.

Further, special thanks to my SUPERVISOR, Dr. Noralfishah Sulaiman, whose

guidance and support directed me throughout all the stages of the journey. I am deeply

indebted to my PANELS, Dr. Mohd Lizam for his astute intellectual guidance and

assistance in sharing valuable ideas during the theoretical stages of this research, and

Dr. Shafie Mohamed Zabri and Dr. Norbaya Ab Rahim (UiTM), for his/her concern

and constructive feedback; things would have been a lot more difficult without you.

I would also like to thank Ms. Shobena (Executive of Public Relations & Marketing,

Malaysia Healthcare Travel Council), Mr. Tarmizi (Senior Executive of International

Marketing, Prince Court Medical Centre), Dr. Jeremy Low (Director of Business

Development & Marketing, Penang Adventist Hospital), Puan Norhaslina (Senior

Manager, Marketing & Business Development, Pantai Hospital Kuala Lumpur), and

Mr. Eric Beh (Head of Services, Public Relations & Marketing), who have been so

generous in sharing their knowledge and experience with me for this research. My

appreciation and special thanks also goes to the Universiti Tun Hussein Onn Malaysia

(UTHM) and MyBrain 15 for the provision of scholarship and financial support

throughout the Master programme.

Page 7: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

v

ABSTRACT

Previous studies found that Healthcare Information (HI) asymmetry or doctor-patient

knowledge gap is identified as one of the problems causes the Malaysia’s Medical

Tourism (MT) industry less efficient. This study is then seeking to promote and

introduce MT in Malaysia by using Internet as one of the marketing strategies at the

national level. Two research instruments were used in this study known as (1) Content

Analysis of 63 Medical Tourism Websites (MTwebs) and (2) Semi-structured Expert

Interview with Malaysian Healthcare Travel Council (MHTC) and four Medical

Tourism Hospitals (MThops). Qualitative data for this study were analysed by using

content analysis, code frequency analysis and NVivo 10, as Computer-Aided

Qualitative Data Analysis Software (CAQDAS). The outcome from this study shows

that there are 5 criteria and 21 child nodes emerged from the analytical analysis, known

as (1) Price; (2) Destination; (3) Healthcare Services; (4) Hospital Accreditation; and

(5) International Patient Tourists (IPTs) Healthcare Services. Findings also indicated

that 34 out of 63 MTwebs were commercial-based websites which revealed that the HI

provided through these MTwebs were more towards promotional ends rather than

helps to inform International Patient Tourists (IPTs) regarding potential risks inherent

(travel risk and surgical risk) while seeking cross-border MT. On top of that, the

hierarchy of the results also indicated that healthcare services, price and IPTs

healthcare services were more significant than destination and hospital accreditation

in designing the best MTwebs. Finally, a holistic Internet Marketing Strategy

Framework (IMSF) named as “4A’s Model” is proposed as a marketing benchmark

for MThops to promote their cross-border healthcare services to the IPTs across the

globe.

.

Page 8: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

vi

ABSTRAK

Kajian terdahulu mendapati asimetri Maklumat Kesihatan (MK) atau jurang ilmu

antara doktor-pesakit dikenalpasti sebagai salah satu masalah yang menyebabkan

industri Pelancongan Perubatan (PP) di Malaysia menjadi kurang cekap. Justeru,

kajian ini dilaksanakan bagi mempromosi dan memperkenalkan PP di Malaysia

menggunakan Internet sebagai salah satu dari strategi pemasaran PP diperingkat

nasional. Dua instrumen kajian telah digunakan bagi kajian ini yang dikenali sebagai

(1) Analisa Kandungan terhadap 63 laman web PP (MTwebs) dan (2) Temubual

Separa-berstruktur bersama pihak Majlis Pelancongan Kesihatan Malaysia (MPKM)

dan empat wakil dari Hospital Pelancongan Perubatan (MThops). Data-data kualitatif

bagi kajian ini telah dianalisa menguunakan analisa kandungan, analisa kod kekerapan

berbantukan NVivo 10.0 sebagai Perisian Data Analisa Kualitatif Berbantukan

Komputer (CAQDAS). Kajian ini mendapati bahawa terdapat 5 kriteria dan 21 nod

yang telah dikenalpasti daripada analisis analitikal, iaitu (1) Harga; (2) Destinasi; (3)

Perkhidmatan rawatan perubatan; (4) Akreditasi hospital; dan (5) Perkhidmatan

rawatan perubatan bagi pelancong perubatan antarabangsa. Penemuan kajian turut

mendedahkan bahawa 34 dari 63 MTwebs adalah laman web yang bersifat komersial

dimana MK yang disediakan adalah bersifat promosi berbanding bersifat memberikan

maklumat kepada Pelancong Perubatan Antarabangsa (IPTs) berhubung potensi risiko

utama (risiko pelancongan dan risiko pembedahan) ketika mendapatkan rawatan PP di

luar negara. Selain itu, hirarki penemuan kajian mendapati bahawa perkhidmatan

rawatan perubatan, harga dan perkhidmatan rawatan perubatan IPTs adalah dilihat

paling penting berbanding destinasi dan akreditasi hospital dalam merekabentuk

MTwebs yang terbaik. Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran

Internet (RHSPI) yang dinamakan sebagai “4A’s Model” telah dicadangkan sebagai

penanda aras pemasaran dan garis panduan kepada MThops bagi mempromosikan

perkhidmatan kesihatan melepasi sempadan kepada IPTs diperingkat global.

Page 9: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

vii

CONTENTS

TITLE

i

DECLARATION

ii

DEDICATION

iii

ACKNOWLEDGEMENT iv

ABSTRACT

v

ABSTRAK

vi

CONTENTS

vii

LIST OF TABLES

xii

LIST OF FIGURES

xv

LIST OF SYMBOLS AND ABBREVIATIONS

xvii

LIST OF APPENDICES

xxi

CHAPTER 1 INTRODUCTION

1

1.1 Preamble

1

1.2 Research Background

2

1.3 Research Problem

4

1.4 Research Aim

7

1.5 Research Questions

7

1.6 Research Objectives

7

1.7 Scope of Study

7

1.8 Significance of Research

8

Page 10: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

viii

1.9 Thesis Structure

9

1.10 Research Framework

11

1.11 Conclusion

12

CHAPTER 2 LITERATURE REVIEW

13

2.1 Introduction

13

2.2 Medical Tourism

14

2.2.1 Definition

14

2.2.2 Medical Tourism System

18

2.2.3 Evolution of Medical Tourism

21

2.2.4 Medical Tourism in Malaysia

24

2.3 International Patient Tourists

27

2.3.1 Definition

27

2.3.2 Characteristics of International Patient

Tourists

28

2.3.3 International Patient Tourists Market Size

31

2.4 Healthcare Marketing

33

2.4.1 Hospitality Management Philosophies

34

2.4.2 Medical Tourism Service Triangle

37

2.4.3 Types of Healthcare Marketing Strategies

40

2.5 Internet Marketing

44

2.5.1 Internet Marketing Strategies

47

2.5.2 Typology of Medical Tourism Websites

48

2.5.3 Functionality of Medical Tourism

Websites

50

2.6 The Healthcare Marketing Mix 56

Page 11: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

ix

2.7 Criteria of Medical Tourism Websites

61

2.7.1 Price

62

2.7.2 Destination

66

2.7.3 Healthcare Services

70

2.7.4 Hospital Accreditation

73

2.7.5 International Patient Tourists (IPTs)

Healthcare Services

77

2.8 Proposed Internet Marketing Strategy Framework

(IMSF)

79

2.9 Summary of the Chapter 84

CHAPTER 3 RESEARCH METHODOLOGY

86

3.1 Introduction

86

3.2 Research Philosophy

86

3.2.1 What is Research?

86

3.2.2 Why Healthcare Marketing Research?

87

3.3 Research Design

88

3.3.1 Reason for Choosing Qualitative Approach

91

3.4 Data Collection

92

3.4.1 Primary Data

92

3.4.2 Secondary Data

93

3.5 Data Analysis

97

3.5.1 Content Analysis

97

3.5.2 Code Frequency Analysis

98

3.5.3 Computer Aided Qualitative Data Analysis

98

3.6 Conclusion

102

Page 12: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

x

CHAPTER 4 DATA ANALYSIS AND DISCUSSION

103

4.1 Introduction

103

4.2 General Information on Medical Tourism

Websites

104

4.2.1 Typology of Medical Tourism Websites

104

4.2.2 General Information

105

4.2.3 Contact Information

105

4.2.4 Medical and Wellness Services

Information

106

4.2.5 Room Facilities Information

107

4.2.6 Interactivity of the Medical Tourism

Websites

108

4.2.7 Websites Language Assistance

109

4.3 Discussion on Research Question (1)

110

4.4 Discussion on Research Question (2)

113

4.4.1 Price

113

4.4.2 Destination

118

4.4.3 Healthcare Services

120

4.4.4 Hospital Accreditation

125

4.4.5 International Patient Tourists (IPTs)

Healthcare Services

128

4.5 Discussion on Research Question (3)

131

4.6 Conclusion

136

CHAPTER 5 CONCLUSION AND RECOMMENDATIONS

138

5.1 Introduction

138

5.2 Market Trends of Malaysia Medical Tourism

138

5.3 International Patient Tourists

140

Page 13: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xi

5.4 Healthcare Marketing

140

5.5 Research Findings for Research Objective (1)

141

5.6 Research Findings for Research Objective (2)

143

5.7 Research Findings for Research Objective (3)

146

5.8 Limitation of the Study

147

5.9 Research Contribution 147

5.10 Recommendations for Future Research

150

5.11 Conclusion

150

REFERENCES

152

APPENDICES

183

Page 14: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xii

LIST OF TABLES

TABLE TITLE PAGE

1.1 Significant Seven Criteria for International Patient Tourists

2

2.1 Various Terminologies of Medical Tourism

14

2.2 Definitions of Health Tourism

15

2.3 Definitions of Medial Tourism

16

2.4 Definitions of Wellness Tourism

17

2.5 Factors of Medical Tourist Destination Region Component

20

2.6 Evolution of Medical Tourism Industry in Southeast Asia

Region

22

2.7 Malaysia Hospital Healthcare Facilities in 2011

25

2.8 Actual International Patient Tourists

27

2.9 Characteristics of International Patient Tourists

29

2.10 Medical Travellers by Source and Destination

31

2.11 Hospitality Management Orientations

35

2.12 Types of Healthcare Marketing Strategies

41

2.13 Internet Marketing Strategies

47

2.14 The Proposed Extensions of Healthcare Marketing Mix

59

2.15 Average Medical Tourism Expenditure in 2012

63

2.16 Ranking for Value for Money

64

2.17 Medical Procedures Price in Selected Countries

65

2.18 Major Medical Tourism Destination Region 67

Page 15: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xiii

2.19 Destination Attributes

68

2.20 State-of-Art Health and Services

70

2.21 Major Healthcare Services Offered

72

2.22 The Differences in Accreditation and Certification

74

2.23 Types of Accreditation and Certification

75

2.24 Number of JCI Accredited Hospital in Asian Countries

77

2.25 Tourism-related Services in Medical Tourism

78

2.26 The Differences between Conceptual and Theoretical

Framework

80

3.1 List of Medical Tourism Hospitals

95

3.2 The Function of Computer Program in Qualitative Content

Analysis

98

3.3 Nodes and Codes in Criteria of Medical Tourism Websites

100

4.1 Information List on Chosen Respondents

103

4.2 General Information

105

4.3 Contact Information

106

4.4 Medical and Wellness Services Information

107

4.5 Room Facilities Information

108

4.6 Interactivity of Medical Tourism Websites

109

4.7 Matrix Analysis of Expert Interview

111

4.8 Criteria 1. Price

114

4.9 Average Room Rates in Medical Tourism Hospitals

115

4.10 Criteria 2. Destination

118

4.11 Criteria 3. Healthcare Services

121

4.12 Types of Health Screening Assessment

123

4.13 Criteria 4. Hospital Accreditation

125

Page 16: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xiv

4.14 Criteria 5. International Patient Tourists (IPTs) Healthcare

Services

129

5.1 Checklist of Medical Tourism Websites (MTwebs) Content

148

Page 17: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xv

LIST OF FIGURES

FIGURE TITLE

PAGE

1.1 Medical Tourism Receipts in Malaysia

3

1.2 Research Framework

11

2.1 Medical Tourism System

19

2.2 Modes of Supply of Trade in Health Services

23

2.3 International Patient Tourists Market Share in 2011

32

2.4 Medical Tourism Service Triangle

38

2.5 Demographic Distribution of Southeast Asian Internet

Audiences

43

2.6 Activities Undertaken by Web-based Health Information

Seekers

46

2.7 Typology of Medical Tourism Websites

49

2.8 Functionality of Medical Tourism Websites

51

2.9 Healthcare Marketing Mix (7P’s)

56

2.10 Criteria of Medical Tourism Websites

62

2.11 Average Range of Cost Saving for International Patient

Tourists

66

2.12 Healthcare Services and Medical Travelling

71

2.13 Proposed Conceptual Framework for Internet Marketing

Strategy Framework (IMSF)

82

3.1 Sampling Presentation of the Research

90

3.2 Nodes and Codes in Criteria of MTwebs using NVivo 10

101

Page 18: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xvi

4.1 Typology of Medical Tourism Websites

104

4.2 Languages Assistance

110

4.3 Internet Marketing Strategies

111

4.4 Hierarchy of the Criteria of Medical Tourism Websites

132

4.5 Internet Marketing Strategy Framework (IMSF)

135

Page 19: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xvii

LIST OF SYMBOLS AND ABBREVIATIONS

AMA American Marketing Association

3T MRI 3 Tesla Magnetom Trio Magnetic Resonance Imaging

APHM Association of Private Hospitals of Malaysia

CA Content Analysis

CABG Corony Artery Bypass Graft

CAQDAS Computer-Aided Qualitative Data Analysis Software

CT scan Computed Tomography Scan

DMT Domestic Medical Tourism

ENT Ear, Nose and Throat

et al and other people

F&B Food and Beverage

FAQs Frequently Asked Questions

GATS General Agreement of Trade in Services

GCP Good Clinical Practice

GDP Gross Domestic Product

H Medical Tourism Hospitals’ Code

HACCP Hazard Analysis Critical Control Points

HI Healthcare Information

HIPAA Health Insurance Portability and Accountability Act

HM Healthcare Marketing

Page 20: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xviii

HPH Health Promoting Hospital Network

HT Health Tourism

IM Internet Marketing

IMS Integrated Management System

IMSF Internet Marketing Strategy Framework

IMTJ International Medical Travel Journal

IPTs International Patient Tourists

ISO International Standards Organisation

ISQua International Society for Quality in Healthcare

IT Information Technology

JCI Joint Commission International Accreditation

KTM Keratapi Tanah Melayu (Malaysian Railway)

M1 Respondent (Malaysia Healthcare Travel Council)

MGCC Malaysian-German Chamber of Commerce & Industry

MHSP Man Health Screening Package

MHTC Malaysia Healthcare Travel Council

MMA Malaysian Medical Association

MMC Mahkota Medical Centre

MofREFM Master of Science in Real Estate and Facilities Management

MoH Ministry of Health Malaysia

MRI Magnetic Resonance Imaging

MSQH Malaysian Society for Quality in Health

MT Medical Tourism

MTDR Medical Tourist Destination Region

MTGR Medical Tourism Generating Region

Page 21: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xix

MThops Medical Tourism Hospitals

MTI Medical Tourism Industry

MTP Medical Tourism Programme

MTS Medical Tourism System

MTwebs Medical Tourism Websites

n Number of sampling

NGO Non-Governmental Organisation

NHS National Health Services

NKEAs National Key Economic Areas

O&G Obstetrics and Gynaecology

PAH Penang Adventist Hospital

PCMC Prince Court Medical Centre

PET Positron Emission Tomography

PHKL Pantai Hospital Kuala Lumpur

PPC Pay-per-click

PVG Patient and Visitors Guide

R1 Respondent 1

R2 Respondent 2

R3 Respondent 3

R4 Respondent 4

RDF Resource Description Framework

RO1 Research Objective 1

RO2 Research Objective 2

RO3 Research Objective 3

RQ1 Research Question 1

Page 22: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xx

RQ2 Research Question 2

RQ3 Research Question 3

SEO Search Engine Optimisation

SIRIM Standards and Industrial Research Institute of Malaysia

SME Small and Medium-sized enterprise

TV Television

UCSF University of California San Francisco

UK United Kingdom

US United States

VISA Visitors International Stay Admission

WHO World Health Organisation

WHSP Women Health Screening Package

WMSP Well Man Screening Package

WT Wellness Tourism

WWSP Well Women Screening Package

XML Extensible Markup Language

Page 23: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

xxi

LIST OF APPENDICES

A Letter for Data Collection

B Questionnaire Survey

C Participating Medical Tourism Hospitals in Malaysia

D Data collection of Expert Interviews

E Data Collection of Medical Tourism Websites (MTwebs)

F List of Publications

Page 24: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

CHAPTER 1

INTRODUCTION

1.1 Preamble

The worldwide Health Tourism (HT) industry is not a new phenomenon and it has

been recorded since Neolithic and Bronze ages in Europe when people travelled to

visit mineral and hot springs (Paffhausen et al., 2010). Medical Tourism (MT) takes

place when individuals opt to travel internationally with the primary intention of

obtaining medical treatment while simultaneously being holiday makers (Connell,

2006; Lunt & Carrera, 2011). In recent years, MT which indicates the combination of

medicinal service and tourism, is gaining popularity worldwide as an innovative

tourism program (Min, 2013).

In Southeast Asia, Medical Tourism Industry (MTI) is expanding rapidly and

emerging as a lucrative business opportunity (Chee, 2007; Herberholz & Supakankunti,

2012; Tullao et al., 2012). Due to this promising opportunity, many ASEAN countries

(e.g. Singapore and Thailand) are promoting tourist destinations by combining high-

quality healthcare services at competitive prices with attractive tourism packages

(Connell, 2006; Dahlui & Aziz, 2012; Lončarić, Bašan & Jurković, 2013).

Why do people travel out of the country for healthcare? Chee (2007) addressed

that relaxation factor served as a motivator for the middle and upper-class International

Patient Tourists (IPTs) of developing countries making decision about MT in the

foreign land. These push and pull factors include lower treatment cost (Paffhausen et

al., 2010; Singh & Gill, 2011); high-quality healthcare services (Tawil, 2011; Bruce,

2013); shorter waiting times (Jeffreys, 2011; Woodman, 2015) and Internet-based

marketing by providers (Turner, 2011; Hanefeld et al., 2013; Osman, 2014). Despite

there are many factors, which may influence IPTs decision making on choice of

healthcare destination, Pollard (2012) and Teoh (2014) summarised that there are

seven significant criteria for an IPT to make informed choices as shown in Table 1.1.

Page 25: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

2

Table 1.1: Significant Seven Criteria for International Patient Tourists (Pollard, 2012; Teoh, 2014)

Criteria Description

(1) Geographical

proximity

Travel time, travel convenience such as ease of airport access and

barriers to entry.

(2) Cultural proximity Language, religion, food, customs and practices.

(3) Destination image Perceptions and positive impression of destination, e.g. product image,

destination branding and accommodation services.

(4) Destination

infrastructure

Services and facilities which are available at the destination such as

treatment services, clinic or hospital level, role of medical travel

facilitators, range and quality of accommodation available.

(5) Destination

environment

Factors that may enhance attractiveness for IPTs, e.g. cultural heritage

attraction, climate, geographic origin and price.

(6) Risk and reward Medical outcome, safety, track record and guarantee.

(7) Price

Cost of treatment, cost of travel to destination, cost of stay

(accommodation and living costs for IPTs and companions), cost of

insurance such as the specialist medical travel insurance and medical

complication insurance.

1.2 Research Background

As a component of healthcare sector, MT services include a variety of elements such

as hospital facility services; hotel and accommodations to the IPTs; food and beverage

and excellent wide range of tourism support facilities services (Ko, 2011). As indicated

by Dahlui & Aziz (2012), given the potential economic gain from MT, the Malaysian

government has made aggressive efforts to market MT abroad and promote awareness

of Malaysia as a healthcare destination. According to Kweon & Kim (2013), the

Malaysian government create a high added value through MT by combining traditional

medical therapies with tourism as an alternative way to promote MTI at the national

level.

MT under the National Key Economic Areas (NKEAs) in 10th Malaysia Plan

(a medium-term spending plan from 2011 to 2015) becomes the key money spinner

for Malaysia (Dahlui & Aziz, 2012; Australian Government Trade Commission, 2014).

A survey reported that IPTs arrivals increased by 14.6 percent from 671,727 in 2012

to 770,134 in 2013 (Malaysia Healthcare Travel Council (MHTC), 2014). Furthermore,

the revenue from MT also grew from RM 594 million in 2012 to RM 688 million in

2013, see Figure 1.1.

Page 26: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

3

Figure 1.1: Medical Tourism Receipts in Malaysia (Hilmi, 2013;Suleiman, 2013; MHTC, 2014; MToday News Online, 2014)

According to statistics taken from Teo (2013) and Orissa International Online

(2013), popular MT destinations with strong IPT attractions include Penang and Klang

Valley with each state contributes 49 percent and 21 percent respectively of the total

revenue generated from MT in 2011. Teoh (2014) and Yap (2014) indicated that most

IPTs come from neighbouring countries with less developed healthcare infrastructure

like Indonesia (72 percent), Singapore (10 percent) and Japan (5 percent). The higher

treatment costs in Singapore and unstable political scene in Thailand are the main

factors cause Malaysia becomes a preferred destination for these IPTs (Dahlui & Aziz,

2012).

As explained by Wickramasinghe et al. (2013) and Cooper (2015), the

Malaysian government are actively carrying out promotional activities to outsource

Malaysian healthcare facilities and healthcare services abroad. Concepts such as the

4Ps (Product, Price, Place and Promotion); service marketing mix and MT theories

have become increasingly significant strategies to create competitive advantages in

MTI (Hudson, 2008; Tracy, 2010; Pollard, 2012; Venkatesh, 2012).

Specifically, the Internet has been used as an effective mechanism to facilitate

electronic communications between IPTs and Medical Tourism Hospitals (MThops)

(Baker et al., 2003; Crooks et al., 2010; Lunt et al., 2010; Lunt & Carrera, 2011).

According to Medical Tourism Association (2009) and Manaf et al. (2010), 49 percent

of IPTs found out about healthcare services in a foreign country from the Internet. It

is not surprising that there is an increasing number of Medical Tourism Websites

2007 2008 2009 2010 2011 2012 2013

International Patient Tourists 341,288 374,063 336,225 392,956 583,296 671,727 770,134

RM million 253 299 288 378 511 594 688

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

0

100

200

300

400

500

600

700

800

Rev

enu

e

Arr

iva

ls o

f H

ealt

h T

rav

elle

r (

per

son

)

Page 27: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

4

(MTwebs) as a mode of marketing communication to introduce and to promote a

health-related product, and services include medical procedures, hotels, airlines,

transportation arrangements and insurances to the IPTs (Turner, 2007; Lunt et al., 2010;

Tatnall, 2010; Crook et al., 2011; Watson & Stolley, 2012).

According to Lee & Kozar (2006), there is a significance relationship between

MTwebs quality, preference and business performance. Lončarić et al. (2013) added

that high-quality MTwebs would attract more attention and visits from IPTs by

implying that their healthcare services and healthcare products are of high-quality,

further higher the likelihood of increase business performance.

Hence, there is a need to conduct a research that looks into the Internet

marketing strategies which may strengthen or weaken a choice of MT destination

toward the IPTs. The development of a conceptual framework for the Internet

Marketing Strategy Framework (IMSF) to be suggested is named as "4A's Model":

Affordability, Accessibility, Availability and Accreditation.

Healthcare affordability is the ability of a person to pay for healthcare service

costs (Axene, 2003; Goudge et al., 2009; Pollard, 2012). Accessibility refers to the

ease with which an individual can obtain needed healthcare services such as

geographical accessibility (Paez et al., 2010; World Health Organisation (WHO),

2014). Meanwhile availability reflects to adequate supply of healthcare services,

utilisation of health facilities or outcome of healthcare services (Gulliford et al., 2002;

WHO, 2014). Accreditation refers to the self-assessment, which assesses the

performance of MThop towards high-quality healthcare services (Agarwal, 2010;

Jaafaripooyan, et al., 2011). This 4A's Model will be further explained in Chapter 2.

1.3 Research Problem

Healthcare Information (HI) means any information, either oral or recorded in any

form or medium, that for staying well; preventing and managing disease; and making

other decisions related to medical and healthcare (Rippen & Risk, 2000; Stewart, 2013;

Health Insurance Portability and Accountability Act, 2014). Undoubtedly, the

development of the information society has been driven by technology (Barr, 1985;

Khalil, 2001). The Internet therefore has become an important source of information

for consumers in merchandise, services, travel or health (Lončarić et al., 2013). As

Page 28: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

5

cited by Singh (2014), the Internet has facilitated MT growth by providing an effective

networking between IPTs and MThops.

As of 2012, Malaysia has 18.6 million the Internet users regardless of locations

(Malaysian Communications and Multimedia Commission, 2013; Malaysia Asia

Online, 2013). The survey found that 94.3 percent of the Internet users are Malaysian

while 5.7 percent are of other nationalities (Malaysian Communications and

Multimedia Commission, 2013). It is known that the Malaysian Internet users spend

nearly 20 hours per week online (Ariffin, 2011; Malaysian Communications and

Multimedia Commission, 2013; Inthiran et al., 2013). Previous survey reported that

64.3 percent of rural women in Malaysia seeking HI through online (Bakar, 2011). As

indicated by Khalil (2001) and Fox & Duggan (2013), there is a current shift towards

giving IPTs more responsibility for their healthcare decisions and now many of them

switch their way of seeking online HI virtually.

Patrick & Koss (1995) and Khalil (2001) defined consumer of HI as "any

information that enables individuals to understand and make health-related decisions

for themselves or their families". Khalil (2001) itemised consumer HI, to cover (1)

information supporting individual and community-based health promotion and

enhancement; (2) self-care; (3) shared (professional-patient) decision making; (4)

patient education and rehabilitation; (5) using the healthcare system and selecting

insurance or a MThop; and (6) peer group support. The use of the Internet has been

benefiting IPTs to search online HI, compare medical costs and making decision

before use or purchase the health-related product and service (Cline & Haynes, 2001;

Khalil, 2001; Lunt et al., 2010; Lunt & Carrera, 2011).

In Malaysia's healthcare sector, according to Abdullah (2005) and Lum (2010),

IPTs as consumers of healthcare do not have adequate knowledge to access factors that

are associated with quality care, patient’s rights and have difficulty in judging the

quality and the appropriateness of healthcare they received. As explained by Abdullah

(2005); Chee & Barraclough (2007); Lum (2010) and Quek (2014), a major reason is

the asymmetry of HI gap between the MThops and IPTs. For instance, Chee &

Barraclough (2007); Lum (2010) and Quek (2014) stated that there is no relevant

information on hospital charges and no laws regulating patients’ rights (Lum, 2010) in

Malaysia private MThops.

Page 29: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

6

As indicated by Chee & Barraclough (2007); Lum (2010) and Quek (2014),

there is imperfect information since IPTs have limited understanding of what will or

will not restore health, while the MThops has much better information on what the IPT

requires and usually has influence over what is supplied and consumed. In economics

and contract theory, information asymmetry deals with the study of decisions in

transactions where one party has more or better information than the others. The

imbalance of power in transaction can lead to market failures in MTI (Abdullah, 2005;

Vadaketh, 2014).

Bringgs (2006) indicated that there are between ten and twenty thousand

health-related websites available on the Internet. However, less than half of the online

HI has been reviewed by doctors. In addition, online HI is a secondary data and it is

relied on another person's interpretation of data. According to Lambert (2010), 60

percent of HI available through online is incorrect, only 40 percent website offers

correct information. As cited by Ibraghimova (2006) and Crooks et al. (2011), there is

still a paucity of knowledge about the dissemination, content and reception of

promotional materials through MTwebs strategies. Another issue that the MTwebs has

is the trust and mistrust of online health websites (Bringgs, 2006). Besides, the

majority of MTwebs contents are unclear, incomplete and misleading (Ibraghimova,

2006).

There is a limited number of studies that looks into the asymmetry of HI gap

between the MThops and IPTs or doctor-patient knowledge gap using MTwebs

marketing. To date, most of the studies that were conducted have paid particular

attention to MThops based in countries such as the western countries like US, Canada

and Australia (Laing et al., 2010; Lunt & Carrera, 2011; Turner, 2010) and Thailand

(Connell, 2006; Cohen, 2008; Whittaker & Chee, 2014) where none of these studies

was conducted in Malaysia.

Therefore, in this study, the HI asymmetry or doctor-patient knowledge gap is

identified as one of the problems causes the healthcare market failure. Hence, due to

this deficiency which leads to a gap in literature review, therefore the researcher seeks

to promote further understanding of MT in Malaysia using the Internet marketing

strategy at a nation's level. The establishment of new knowledge and practical

contributions in this research area is a very important value for Malaysia MTI.

Page 30: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

7

1.4 Research Aim

The objective of this study is to develop a holistic Internet Marketing Strategy

Framework (IMSF) for MThops in Malaysia. Given the pivotal role of MTwebs for

gaining access to HI and advertising international healthcare, a systematic review of

MTwebs will provide a detailed account of quality of HI content and presentation.

1.5 Research Questions

In accordance to the discussed problem statement, the research inquiries of the study

are as follows:

(1) What are the Internet marketing strategies available in attracting International

Patient Tourists (IPTs) to Malaysia?

(2) What are the criteria of Medical Tourism Websites (MTwebs) provided by

Medical Tourism Hospitals (MThops) in Malaysia?

(3) What is the holistic Internet Marketing Strategy Framework (IMSF) for

Medical Tourism Programme (MTP) in Malaysia?

1.6 Research Objectives

There are three objectives in this study:

(1) To investigate the Internet marketing strategies available in attracting

International Patient Tourists (IPTs) to Malaysia.

(2) To evaluate criteria of Medical Tourism Websites (MTwebs) provided by

Medical Tourism Hospitals (MThops) in Malaysia.

(3) To propose a holistic Internet Marketing Strategy Framework (IMSF) for

Medical Tourism Programme (MTP) in Malaysia.

1.7 Scope of Study

This study is conducted in order to explore and investigate all the Internet marketing

techniques and practices in MTwebs thoroughly. In addition, it is trying to understand

the mechanism of the Internet marketing strategies, which is focusing on 63 MTwebs

under the Malaysia Healthcare Travel Council (MHTC) portal website. Respondents

Page 31: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

8

involved to facilitate this study consists of four private MThops and governing body

in Malaysia.

This study is only limited to MThops that are engaged with the Medical

Tourism programme (MTP). Wellness MThops are not included in this study. There

are several limitations involve in this study. Firstly, a total of 63 MTwebs being studied

are restricted to English language-based websites. Secondly, the respondents in this

study are only of the expert from private sector in Malaysia where MThops have

acquired Joint Commission International (JCI) or Malaysian Society for Quality in

Health (MSQH) accreditation.

1.8 Significance of Research

In light of this review, this study is worth to be carried out in order to provide a better

guideline to marketing MT component using the Internet strategy. Besides, a detailed

and reliable online HI displays on MTwebs can benefits the following stakeholders.

(1) Public and Private Medical Tourism Hospitals (MThops)

Findings from this study would be shared and be suggested to the MThops

in order to allow them to promote and introduce their healthcare facilities

and services via an appropriate Internet marketing strategy. Moreover, it

also allows them to offer a seamless combination of complicated arrangements

within the MT support system such as insurance and documentation, travel-

related assistance for IPTs and One-Stop solution in healthcare services.

(2) International Patient Tourists (IPTs)

The IPTs, the uninsured IPTs, particularly those with reported chronic

conditions and individuals with longer travel times for their usual source of

care are more likely to use the Internet for health-related communication

(Bundorf et al., 2006). This study can act as a reference to the IPTs for

seeking HI online before or after visiting to a foreign country in order to obtain

healthcare facilities and healthcare services. Thus, many IPTs would easily

receive the HI needed guided by the suggested research framework.

Page 32: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

9

(3) Physicians and Medical Trainees

E-health is an emerging field in the intersection of medical informatics,

clinical practice and business referring to health services and information

delivered through the Internet (Eysenbach, 2001). This study is expected to

benefit medical students, physician and doctors to exchange clinical

information and understanding the needs of the IPTs.

(4) Academics

This study reveals the growth of global MTI MThops all around the world is

increasing as well as its international marketing activities. Therefore, this

study would act as references to the postgraduates, lecturers and researchers

in their future studies as well.

1.9 Thesis Structure

There are five (5) chapters in this thesis, and each chapter discusses a specific aspect

of this study.

(1) Chapter 1: Introduction

The first chapter explains and discusses the problem and issues that occur in

the emergence of web-based HI in the globalisation of health and MT sector.

It covers research background, problem statement, research questions,

research objectives, scope of study, significant of study and the elements of

research framework.

(2) Chapter 2: Literature Review

Chapter 2 expresses overview of MT in Malaysia and other countries, various

Internet marketing strategies in healthcare services, previous theoretical or

conceptual frameworks, research findings and contribution, which related to e-

health trend in MTI. This chapter also clarifies the definition of concepts and

terminologies, history of MT and all other data associated with this topic.

Page 33: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

10

(3) Chapter 3: Research Methodology

Chapter 3 covers the initial stage of the research process until the final stage

of the study. This includes research method selection and techniques designed

in collecting and processing the primary and secondary data through expert

interviews and content analysis of MTwebs in Malaysia.

(4) Chapter 4: Data Analysis and Discussion

Chapter 4 is a crucial chapter for this study. Qualitative data collection will

be analysed in this chapter. Computer Aided Qualitative Data Analysis

Software (CAQDAS) such as NVivo 10 is used to analyse the secondary data

to obtain the accurate finding. On top of that, primary data is collected

through the expert interviews designed.

(5) Chapter 5: Conclusion and Recommendations

Chapter 5 is the final part of this study. In this chapter, outcomes from data

analysis are summarised and concluded. Recommendations and suggestions

for the future research opportunities are also elaborated in this chapter.

Page 34: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

11

1.10 Research Framework

Figure 1.2: Research Framework (Researcher’s study, 2015)

TITLE

Development of A Holistic Internet Marketing Strategy Framework (IMSF) In Promoting

Medical Tourism Industry (MTI) In Malaysia

To investigate the Internet

marketing strategies

available in attracting

International Patient Tourists

(IPTs) to Malaysia.

To evaluate criteria of

Medical Tourism Websites

(MTwebs) provided by

Medical Tourism Hospitals

(MThops) in Malaysia.

To propose a holistic

Internet Marketing Strategy

Framework (IMSF) for

Medical Tourism

Programme (MTP) in

Malaysia.

RESEARCH SCOPE

A total of 63 Medical Tourism Websites (MTwebs) and expert interviews with

respective bodies were conducted

RESEARCH METHODOLOGY

DATA COLLECTION

RESULT AND FINDING OF RESEARCH

RESEARCH OBJECTIVE 1 RESEARCH OBJECTIVE 2 RESEARCH OBJECTIVE 3

RESEARCH QUESTION 1

What are the Internet

marketing strategies

available in attracting

International Patient Tourists

(IPTs) to Malaysia?

RESEARCH QUESTION 2 RESEARCH QUESTION 3

What are the criteria of

Medical Tourism Websites

(MTwebs) provided by

Medical Tourism Hospitals

(MThops) in Malaysia?

What is the holistic Internet

Marketing Strategy

Framework (IMSF) for

Medical Tourism

Programme (MTP) in

Malaysia?

PRIMARY DATA SECONDARY DATA

EXPERT INTERVIEW

(1) Malaysia Healthcare Travel Council

(2) Four MThops

CONTENT ANALYSIS

63 MTwebs under Malaysia Healthcare

Travel Council portal website

CONCLUSION AND RECOMMENDATION

DATA ANALYSIS

Page 35: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

12

Figure 1.2 explains the research process of the study. According to Sulaiman

(2011), a research process framework portrays the whole process involved in carrying

the research. It started with research background and research problem, followed by

identification of research objectives and scope of study. Definitions, key terms and

terminology related to this research will be defined in literature review chapter. In data

collection and analysis stage, primary and secondary data will be obtained through

expert interview and content analysis of MTwebs. The data collected then will be

analysed using NVivo 10, a Computer Aided Qualitatice Data Analysis (CAQDAS)

software.

1.11 Conclusion

Chapter 1 is an important chapter to summarise important points throughout the whole

thesis. This chapter explained and distinguished essential segments of research process

which covering the Research Problem, Issues that occur in Malaysia’s healthcare

industry, Justification for this research topic, the Significance of this research to the

Malaysia government, MThops and IPTs as well as researchers.

Page 36: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

A review of the literature indicates that Health Tourism (HT) is not a new concept. It

has emerged due to the need of adapting the changing lifestyle and habits in HT (Manaf,

2010). The impact of globalisation in healthcare has paralleled with emerging trends

towards the increased reliance upon indivisualiased healthcare provision and IPT led

access to health-related websites (Craigie et al., 2002; Lunt et al., 2010). The Internet

as a key driver in the MT phenomenon has been opening up to a new demand and need

for healthcare consumers to access HI and efforts on advertising from anywhere in the

world, including information about international and cross-border provision of

healthcare services (Lunt et al., 2010; Lunt et al., 2011).

Healthcare in Malaysia consists of two main categories which are Medical

Tourism (MT) and wellness programme (Ministry of Tourism Malaysia, 2014). This

study is focusing on MT because Malaysia is ranked among the top choices in the

region for providing MT internationally (Bakhtiar, 2009; Puzi, 2012; Karen, 2013).

Thus, this chapter covers relevant review of literatures for this particular study. It is

structured and organised as follows:

(1) An overview of theoretical, propositions on marketing concept in healthcare

industry, and the Internet marketing;

(2) A review of the Internet Marketing Mix and the development of a conceptual

framework for this particular study.

Page 37: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

14

2.2 Medical Tourism (MT)

2.2.1 Definition

Previous literature reveals that there are various terminologies which are given to

Medical Tourism (MT). However, when and where the terms of MT itself originated

is actually unknown (Connell, 2011; Munro, 2012). As the definition and concept of

MT in healthcare sector still ambiguous, General Agreement of Trade in Services

(GATS) has classified MT as an economic activity that involves trade in services from

two distinct sectors, healthcare and tourism. Unfortunately, Paffhausen et al. (2010)

claimed the kind of treatment encompasses in MT still make the definition unclear due

to several conditions as below.

(1) Does the term involved only specific medical intervention?

(2) Does it include elective as well as essential surgery?

(3) Do spa, relaxation, alternative and rehabilitation treatments qualify as part of

the healthcare services offered to medical tourists?

Hence, it can be said that there is no standards of MT terminology applied

consistently across the world. In addition to this, the interchangeable used of MT

terminologies may be confusing to some IPTs, government, MThops and countries

(Connell, 2011; Crooks et al., 2010; Munro, 2012). See Table 2.1.

Table 2.1: Various Terminologies of Medical Tourism (Bookman & Bookman, 2007; Connell, 2011; Hjalagar & Konu, 2010; Munro, 2012)

Medical Tourism (MT) Terminology

(1) Contraception tourism

(2) Cosmeceuticals

(combination of term "cosmetics" and "pharmaceuticals")

(3) Detox tourism

(4) Health travel

(5) Health tourism

(6) Medical travel

(7) Medical outsourcing

(8) Organ transplant tourism

(9) Pregnancy tourism

(10) Pharmaceutical tourism

(11) Spa tourism

(12) Toothache tourism

(13) Ultimately death tourism

(14) Wellness tourism

Page 38: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

15

In academic literature, MT definition has been ignited from a tourism

management perspective, analysing pull and push factors in health perspective

(Henderson, 2004; Garcia-Altes, 2005; Connell, 2006; Smith et al., 2009; Lee, Sridhar

& Patel, 2009; Heung et al., 2010). Additionally, conceptual frameworks in the legal

literature which focus on intervention in health systems, IPT’s liability issues and

potential impact on health systems in specific countries like India and US are also

contributed toward the construction of MT definition and concept (Forgione & Smith,

2006; Atun et al., 2009; Cohen, 2010; Hazarika, 2010; Leng, 2010).

In this view, it can be seen that MT is not only been perceived as limited to few

specific treatments in healthcare services (Paffhausen et al., 2010). It also takes into

account the nature of health systems or depends on the act of travelling abroad and

health seeking behaviour of people who make health decision and choice (Pocock &

Phua, 2011; Munro, 2012). In this case, in order to have an appropriate definition of

MT there are three epistemological constructs being used in this study as shown in

Tables 2.2, 2.3 and 2.4. Under the umbrella term named as HT, these definitions are

viewed from two perspectives named as Medical Tourism (MT) and Wellness Tourism

(WT). Tables 2.2, 2.3 and 2.4 differentiate these interchangeable terms according to

IPTs travel motivation and health seeking behaviour.

Table 2.2: Definitions of Health Tourism (HT) (Researcher’s study, 2015)

Authors Years Topics Definitions

Goodrich 1993 HT

management

HT is defined as the deliberate attempt on the part of a

tourist facility (e.g. hotel) or destination to attract IPTs

by deliberately promoting its healthcare services and

facilities, in addition to its regular tourist amenities.

Bennett, King

& Milner

2004 Vacation

marketing

Any pleasure-oriented tourism which involves an

element of stress relief could be considered to be a

form of HT.

Caballero-

Danell &

Mugomba

2007 MT marketing HT encompasses all treatment that enhance a state of

well-being, both internally and externally, from spa

and relaxation treatments, cosmetic surgery to elective

surgery and essential surgery which include essential

procedures such as heart transplant or hip implants to

remedy and injury or treat an illness.

Joppe & Choi 2010 Spa holiday in

Canada

HT is used to describe someone who has one or more

medical conditions that would make her or him travel

abroad to experience therapies in order to improve her

or his health or well-being.

…Continue to the next page

Page 39: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

16

Table 2.2: Definitions of Health Tourism (HT) (Researcher’s study, 2015)

Continued…

Authors Years Topics Definitions

Stanciulescu 2010 Destination in

health and WT

Provision of health facilities utilising the natural

resources of the country, in particular, mineral water

and climate. HT refers to those IPTs with medical

conditions who would travel to experience healing

therapies.

Musa 2013 MT marketing Travel to a destination and all the activities involved

to host the tourist, who travels with the main purpose

to attain a balance state of body, mind and well-being.

Table 2.3: Definitions of Medial Tourism (MT) (Researcher’s study, 2015)

Authors Years Topics Definitions

Connell 2006 Tourism

management

MT is defined as a new form of niche tourism where

people travel long distances overseas to obtain medical

care while simultaneously being holidaymaker.

Kazemi 2007 MT marketing MT is described as any form of travel from one's

normal place of residence to a destination at which

medical or surgical treatment is provided. The travel

undertaken must involve more than one night away

from the country of residence.

De Arellano 2007 Healthcare

services

marketing

Travel with the express purpose of obtaining

healthcare services abroad, which are typically paid

for out-of-pocket.

Keckley &

Underwood

2008 MT

consumers in

search of

value

It is a process of leaving home abroad for economical

treatments, well-being and recuperation of acceptable

quality with the help of a tourism support system.

These support systems include transportation services

(airlines, cruise ships, tour buses), hospital services

(hotel, resorts) and entertainment venues (amusement

parks, casinos, shopping malls, music and sport

venues, theatres).

Additionally, the medical destination is an

exotic resort halfway into the world, a neighbouring

country or a healthcare facility several hours away in

another province.

Hopkins et al. 2010 MT and

Health policy

system

Cross-border healthcare motivated by lower cost,

avoidance of long wait times or services not available

in one's own country.

Spece 2010 Conflicts of

broker`s fees

The MT market involves uninsured or underinsured

IPTs who are seeking a specific surgery or treatment

abroad.

Global Spa

Summit LLC

2011 Global

healthcare and

MT

People who are sick and travel to a different place to

receive treatment for a disease, ailment or condition,

generally seeking lower cost of care, high quality of

care, better access to care than they could receive at

home.

…Continue to the next page

Page 40: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

17

Table 2.3: Definitions of Medial Tourism (MT) (Researcher’s study, 2015)

Continued…

Authors Years Topics Definitions

Pocock &

Phua

2011 MT and health

policy system

MT as a subset of HT whose involves the organised

travel outside from local environment for the

maintenance, enhancement or restoration of the

individual’s well-being in mind and body.

Musa 2013 MT marketing It can be defined as all activities related to traveling

and hosting an IPT who stays at least one night at the

destination region, for maintaining, improving or

restoring health through medical intervention with the

application of biomedical procedures to the IPT.

Table 2.4: Definitions of Wellness Tourism (WT) (Researcher’s study, 2015)

Authors Years Topics Definitions

Smith &

Puczkó

2009 Health and WT

marketing

WT includes a high focus in facilities for medical

treatment as well as pure leisure and relaxation sites.

Stanciulescu 2010 Destination in

health and WT

marketing

WT is about a balanced state of body, spirit and mind,

including such holistic aspects as self-responsibility,

physical fitness, healthy nutrition, relaxation, mental

activity and environmental sensitivity as

fundamentals elements.

Wellness is also be viewed as a way of life,

which aims to create a fit body, soul and mind through

acquired knowledge and positive interventions. A

person who seeks a wellness travel experience, is

generally healthy to start with and seeks therapies to

maintain his or her well-being.

Priszinger,

Formadi &

Mayer

2010 Health related

WT marketing

WT integrates body, mind and spirit. Generally, it

relates to the physical condition of a person's aim to

achieve a good health condition and minimise the risk

of illness.

Hjalager &

Konu

2010 Cosmeceuticals

in WT

Wellness experiences are not a matter of intangible

procedures and services. It is assisted by a large

number of auxiliary remedies and depends on the

interaction between the staff and the customers in the

wellness facilities.

Azman &

Chan

2010 Health and WT

management

A way of life that an individual creates to achieve his

or her highest potential for well-being, consists of

action that the individual able to control (how they

exercise, eat, manage stress and perceive the

environment) and achieving a high-level wellness

involves continual striving for a more healthful way

of living.

Joppe & Choi

Global Spa

Summit LLC

2010

2011

Spa tourism

Global health

and MT

management

The concept of wellness emphasizes personal

responsibility for making lifestyle choices and self-

care decisions that will improve the quality of life.

People who engage in WT are generally healthy, but

seek therapies to maintain this state of well-being.

Page 41: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

18

In brief, Healthcare Tourism (HT) can be viewed from two different

perspectives, medical and wellness. Medical Tourism (MT) is used to describe the

health practice of IPTs or individuals who are sick travelling internationally with the

purpose to obtain healthcare services, typically paid from out-of-pocket. Meanwhile,

Wellness Tourism (MT) refers to IPTs who travel abroad to enhance and maintain their

state of well-being.

2.2.2 Medical Tourism System

General System Theory was originated in the natural sciences research sphere. The

theory requires a researcher to understand sets of objects, the relationships between

those studied objects, and the relationship between sets of objects and their

environments (Corlett, 2001; Ghosh, Siddique & Gabby, 2003). The Austrian biologist,

Bertalanffy created this theory in 1934, and it has been widely applied to the study of

organisations and human services since then (Corlett, 2001; Ko, 2011; Sauber & Vetter,

2013; Johnston, 2014). In the late 1920s, Bertalanffy wrote:

Since the fundamental character of the living thing is its organisation, the customary

investigation of the single parts and processes cannot provide a complete explanation of the

vital phenomena. This investigation gives us no information about the coordination of parts

and processes. Thus the chief task of biology must be to discover the laws of biological systems

(at all levels of organization). We believe that the attempts to find a foundation for theoretical

biology point at a fundamental change in the world picture. This view, considered as a method

of investigation, we shall call “organismic biology” and as an attempt at an explanation, “the

system theory of the organism” (7, pp.64 ff., 190, 46, condensed).

Bertalanffy (1972)

Tamas (2000) and Sauber & Vetter (2013) defined the word system as “a set

of elements in interaction with each other”. These elements could be a group of things

(forest, rock, animal or anything else), social groups, personality or technological

devices (Needham, 1993; Tamas, 2000). According to Ko (2011), a system is “a

collection of groups of various fields that are mutually related to their efforts to

achieve a common goal”. Lundvall (2010) and Mitchell (2014) added that system

theory studies the structure and properties of systems in terms of relationships, and

clearly define complex phenomena (Ko, 2011).

Page 42: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

19

Indeed, as healthcare sector is regarded as a very complex industry which

encompasses various MT industries, these industries have a similar system in this

particular system theory. As a component of healthcare sector, MT services include a

variety of elements such as hospital facilities services; ambulatory healthcare services;

medical equipment and supplies manufacturing; medi-resort services to the IPTs; food

and beverage and excellent wide range of tourism support facilities (Sacramento

Regional Research Institute, 2005; Ko, 2011). In healthcare, Leiper’s Tourism System

(1995 & 2004) and Bertanlanffy’s System Theory (1972) were taken as a foundation

for Medical Tourism System (MTS) within the same phenomenon (Ko, 2011).

MTS has a capability to understand the roles, mutual connections and

relationships among the various suppliers, MThops and IPTs involve in the MTI

(Morrison, 2009; Ko, 2011). In the context of MT, MTS consists of four interrelated

elements: IPTs, Medical Tourist Generating Region (MTGR), Medical Tourist

Destination Region (MTDR), and MT industries, see Figure 2.1 (Ko, 2011).

Figure 2.1: Medical Tourism System (Ko, 2011)

Marketing

Other external circumstances: tourism experience, environmental changes, exchange rates,

visa policies, labour markets, openness towards foreigners and outbreaks of diseases.

Insurance Companies

Health insurance and travel

insurance

Employers/ Labour

unions/ Travel agencies

Transport services used to send their IPTs for overseas

treatment.

MTGR: IPT's origin country

Types of IPTs

G1 - Major surgery G2 - Minor surgery

G3 - Cosmetic surgery

G4 - Diagnostic service G5 - Alternative therapy

treatment

G6 - Lifestyle/ Wellbeing

MT

Ag

enci

es

(tra

vel

ag

enci

es o

r M

Tho

ps)

MTDR: country that provide healthcare

services

MT

Ag

enci

es

(tra

vel

ag

enci

es o

r M

Tho

ps)

Hotels, food and

beverage

Hospital facilities/

Healthcare services

Government and

social factors

Tourism support

facilities/ services

Type of MT services

Departure

Arrival

Page 43: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

20

The diagram in Figure 2.1 is designed to explain the mutual roles and

relationships among the four components of the MTS, further express the services and

their suppliers according to the routes of the IPTs. According to Ko’s MTS model

(2011), there are six categories of IPTs, from Group 1 to Group 6 in the MTGR, and

IPT is the most basic component of this system. IPT can travel to MTDR in personally,

by medical tourist agency or insurers (only specific for US and Canada) via paid for

out-of-pocket or cover by health insurance.

In MTGR and MTDR, IPTs, insurer corporations, MThops and MT travel

agencies play an important role in stimulating the MTI. There are largely four types of

MT services provided by the MTDR country that are known as (1) Hospital facility

and related services; (2) Accommodation/Food and Beverage (F&B) services, (3)

Tourism support facilities services, and (4) Government and social factors. See Table

2.5. Each of this MTDR service component may strengthen or weaken the preferences

of IPTs (Ko, 2011).

Table 2.5: Factors of Medical Tourist Destination Region Component (Ko, 2011)

MT Service Component International Patient Tourists (IPTs) Preferences

(1) Medical facilities and

services circle

Medical costs; Availability of medical staff; Availability of medical

training (medical school, nursing programs); English commonly

spoken among medical staff; Hospital facilities (capacity,

accreditation, licensure of staff, specialisations); Staff (patient ratio,

ambulance service); Equipment available for rental (oxygen,

wheelchair, etc.); Private nurses available for hire; Medications

(availability, safety of medication quality, parallels to US medication);

Indigenous disease threats; Privately operated facilities; Operation of

aftercare facilities; Ease of medical records transfers back to the home

country.

(2) Hotel and F&B circle Lodging costs; Food and beverage costs; Number of 3/4/5 stars rating

rooms availability; Hospitality labour availability; Hospitality training

availability; Hospitality financial inducements for labour; English

commonly spoken among hospitality staff; Availability of potable

water in facilities; Reliability of electricity in facilities; Licensure and

regulation for: F&B operations, hotel accommodations, spa facilities;

Dietary accommodations available (gluten free, low sodium, doctor

prescribed); Internet availability; Hotel accommodation (disability and

special service accommodations, private baths, elevators, 24-hour

room services availability, proximity to hospitals, heat water or air);

Value for services provided ratio; Presence of spa services: (a) Medical

personnel associated with spa (b) Spa treatments (c) Traditional

treatments, e.g. acupuncture (d) Instruction in relaxation, diet or

wellness, e.g. tai chi, yoga, nutrition (e) Diagnostic services (f)

Exercise/workout facilities.

...Continue to the next page

Page 44: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

21

Table 2.5: Factors of Medical Tourist Destination Region Component (Ko, 2011)

...Continued

MT Service Component International Patient Tourists (IPTs) Preferences

(3) Tourism support

facilities and services

circle

General labour costs; Commonality of English spoken and written;

Availability of educated translators; Airport (direct service from major

cities, airline's servicing area, airfare rates, frequency of flights); Local

transportation: (a) Availability of taxi, buses and other public transport

in hospital/hotel areas (b) Safety of available transport options (c)

Accommodation for disable available; Reliability of infrastructure

(electric service, public services, Waste Management); Safety from

crime; Local political stability; Distribution of service for: cell phones,

the Internet, ease of limited mobility maneuverability (wheel chair,

friendly pedestrian); Weather appeal for vacation and for recovery;

Destination appeal (city offerings, relaxation, education, culture,

sightseeing, traditional medicine as supplement/ alternative);

Receptivity by local to IPTs; Current awareness of locale by the IPTs.

(4) Governmental and

social factors circle

Political stability of the country; Stability of labour force; Currency

fluctuations; Access to money/credit; Safety of the country; Respect of

individual rights (culture of tolerance, gender equality, protection of

disable, freedom from unreasonable arrest); Legal system: (a)

Established laws (b) Evenness of enforcement (c) Ownership rights (d)

Legal resources (e) Protection of IPTs (f) Malpractice recognised (g)

Accounting and financial disclosure (h) Tax system (I) recognition of

patents, intellectual property rights; Ease of access: (a) Need for visa

by residents of target markets (b) Visa access (c) Visa processing time;

Type of market/economic model (capitalism, privatisation, regulation/

deregulation of areas impacting healthcare and tourism); Cultural

strain: (a) Likeness of source and host country culture (b) Host

country's citizen attitudes toward the source country.

In brief, MTS presents a systematic and comprehensive MT phenomenon that

occurs between consumer and supplier at each phase of a medical trip. This model

considers IPTs as consumer in the umbrella of MTGR. Meanwhile MTDR can be

referred to as the four types of services to be offered to the potential IPTs. As indicated

by Ko (2011), MTS is not only study the relationship between suppliers and IPTs, it is

also used to describe the geographical nature between two countries or cities: MTGR

and MTDR. Therefore, MTS can be used as a basis of the theoretical framework in

this study in a way to identify the target market in MTGR. The marketing strategies

then will be identified for attracting IPTs on the part of MTDR.

2.2.3 Evolution of Medical Tourism

Since ancient history, people have been traveling great distances to seek treatment for

illness and disease (Bookman & Bookman, 2007; Horowitz, Rosensweig & Jones,

2007; Medical Tourism News & Information Online, 2008; Yap & Yong, 2012). The

evolution of MT is shown in Table 2.6. Spa tourism became one of the earliest forms

Page 45: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

22

of HT during 18th and 19th centuries in Europe (Tawil, 2011). In the late 19th century,

IPTs from less-developed countries started travelling to medical centres in Europe and

the US for more affordable healthcare option that was not available in their home

countries (Horowitz et al., 2007).

Table 2.6: Evolution of Medical Tourism Industry in Southeast Asia Region (Yap & Yong, 2012)

Timeline History and Evolution of Medical Tourism

4,000 B.C The Sumerians built facilities around natural hot springs.

300 B.C The Greeks had their Asclepia temples based on the original complex in Epiduria

providing hot baths, gymnasiums and temples besides their curative services.

1248 The Mansuri hospital was opened in Cairo, and it was most advanced and largest

hospital built then with travellers all over the realm coming to seek cure.

16th -18th

century

Healthcare travel received resurgence in Europe and the UK as the elite

rediscovered Roman baths, and destinations grew around spas in location like Bath,

Baden-Baden, St. Moritz and Ville d’Eaux.

1980 -1990 The growth of tooth tourism as IPTs looking for affordable dental care or

procedures travelled to Central American countries for treatment, which was not

covered by their health insurance schemes.

Pre-1997 The US and Europe dominated in terms of technology and expertise as well as mind

share as centres of excellence for healthcare. Singapore was by default a medical

hub in Asia due to state of relatively advanced economic development. IPTs

traveled for high-end healthcare services which they could not obtain at home

geographies.

1997-2001 Era of the Asian economic crisis

Tough local economic situations compelled local government, e.g. Thailand and

healthcare industry players to source for alternative or foreign business revenue.

Competitive pricing becomes a factor in the healthcare travel equation.

2001-2006 9/11 and the Middle East boom

Rise in demand for elective and cosmetic surgery in the region. Emergence of Asian

destinations, e.g. Thailand, India, Malaysia, etc. as legitimate medical destinations

for IPTs from the west.

Present Rise of Asia and the emerging markets

Rapid rate development both a boon and a bane to the state of healthcare for nations

in the region. In countries where the maturity of the healthcare sector has managed

to keep up with the overall growth picture, they are able to offer world-class

healthcare expertise with no technology or quality gap at relatively competitive

prices versus the western world (supply), but for countries whose healthcare system

have not managed to keep pace, exists a growing market of IPTs whom are able to

afford and demand healthcare services but are not able to obtain them within home

geographies (demand).

Future state It is postulated that success in the industry for regional players can be distilled down

to the constituents of quality (the end-to-end IPT experience), accessibility

(connectivity and convenience) and product or service focus (best market segment

fit).

Page 46: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

23

It was not until 1973 that International Union of Travel Officials was first

categorised HT as a commercial activity (Paffhausen et al., 2010). As a form of

international trade in services, MT falls under Mode 2 of the General Agreement of

Trade in Services (GATS) (Drager & Vieira, 2002; Paffhausen et al., 2010; Herberholz

& Supakankunti, 2012). GATS distinguishes four modes of supply of trade in

healthcare services which can be traded as shown in Figure 2.2 (Paffhausen et al.,

2010; Herberholz & Supakankunti, 2012). According to Carrera & Bridges (2006) and

Pocock & Phua (2011), Mode 1 is regarded as a remote service provision such as

telemedicine, diagnostics and medical transcriptions. Meanwhile, Mode 2 involves the

movement of persons to a country where the services are provided, while Mode 3

regards to foreign ownership of healthcare facilities; and Mode 4 is about movement

of healthcare professionals.

Figure 2.2: Modes of Supply of Trade in Health Services

(Drager & Vieira, 2002; Paffhausen et al., 2010; Herberholz & Supakankunti, 2012)

Trade in Healthcare Services

Mode 2

Consumption of

health services abroad

Mode 3

Commercial

presence

Mode 4

Movement of

medical personnel

Mode 1

Cross-border supply

Shipment of

laboratory samples, diagnosis and

clinical

consultation via mail or electronic

delivery

(e.g. telemedicine)

Medical

tourism

Educational

services

provided to foreign

students

Foreign investment in the health

services sector in

another country, establishment of

hospitals, clinics,

etc.

Movement of health personnel:

includes both

temporary and permanent flows.

from the territory of one Member into the territory of any other Member.

in the territory of one Member to the service consumer of any other Member.

Mode

by a service supplier of one Member, through commercial presence, in the territory

of any other Member.

by a service supplier of one Member, through the presence of natural persons of a

Member in the territory of any other Member.

Page 47: UNIVERSITI TUN HUSSEIN ONN MALAYSIA STATUS …eprints.uthm.edu.my/8802/1/WONG_LAI_YOONG.pdf · Diakhir kajian, Rangka kerja Holistik Strategi Pemasaran Internet (RHSPI) yang dinamakan

24

2.2.4 Medical Tourism in Malaysia

According to Chee & Barraclough (2007) and Shah (2008), Malaysia’s healthcare is

under the control of Ministry of Health Malaysia (MoH). Malaysia healthcare system

is a mixed public-private in a provision of healthcare services (Chen & Tsai, 2007;

Jackson, 2009) whereas the private MThops are the main focus of the current initiative

to offer healthcare services to IPTs (Health Tourism Online, 2013).

Under the 9th and 10th Malaysia Plan, Malaysia Healthcare Travel Council

(MHTC) was established to promote healthcare within Malaysia for IPTs and

dedicated to advance the sector's delivery system and infrastructure (MoH, 2010).

According to Ministry of Tourism Malaysia (2014), HT in Malaysia consists of two

main categories, which are MT and wellness programme. Pharmaceutical, medical

technology products and elderly care (healthcare services, including health travel,

specialist care centers and care of seniors) have been identified as three healthcare sub-

sectors under the NKEA program for healthcare (Malaysian-German Chamber of

Commerce & Industry (MGCC), 2012; MoH, 2014).

According to the Medical Act 1971 (Act 50), every medical practitioner is

required to perform three years of service with public hospital to overcome the

shortage of medical practitioner in the country. However, Malaysian medical

specialists and officers above the age of 45 and working abroad have been exempted

from this rule as an incentive to attract them to return and serve the country (Shah,

2008).

According to Manaf (2010) and Selangor State Investment Centre (2013), other

supportive policies and incentives for MT programme in Malaysia, including:

(1) exemptions from income and withholding tax for 10 years from the

commencement of operations before the end of 2015 as well as unrestricted

employment of foreign knowledge workers;

(2) 100 percent income tax exemption on revenues generated from IPTs, apart

from granting visa-on-arrival to IPTs with a recommendation from

participating MThops, and

(3) 100 percent tax allowance on capital expenditure for medical equipment.