medical tourism in central luzon: an emerging industry

Medical Tourism in Central Luzon: Medical Tourism in Central Luzon: An Emerging IndustryAn Emerging Industry

Department of Trade and Industry- 325 October 2007

I.I. MARKET DYNAMICSMARKET DYNAMICS

II.II. DATA SOURCE/ ASSUMPTIONS/ DATA SOURCE/ ASSUMPTIONS/ PROJECTIONSPROJECTIONS

III.III. MARKET POTENTIALSMARKET POTENTIALS

IV.IV. ENABLING CONDITIONSENABLING CONDITIONS


I. MARKET DYNAMICS

Health Tourism

• Trillion dollar industry

• Medical Tourism included in the Philippine Medium Term Development Plan (2004-2010) and 2007 Investment Priorities Plan

• > US$390 Billion Asian Health care expenditures, US$3 trillion world market per year (Rodolfo, 2005).

• Asian industry leaders:• Thailand • Singapore• Malaysia• India


I. MARKET DYNAMICS

CountryCountry Estimated Market Estimated Market SizeSize

Current MarketCurrent Market Target Markets for Target Markets for ExpansionExpansion

Target Target RevenuesRevenues

VolumeVolume Value (US$)Value (US$)

ThailandThailand 1.10 M1.10 M 470 M470 M Japanese (130,000), Japanese (130,000), Americans (59,000), Americans (59,000),

Britons (14,000)Britons (14,000)

JapanJapan

Rest of Southeast Rest of Southeast AsiaAsia

US$2B by 2010US$2B by 2010

SingaporeSingapore .270 M.270 M 915 M915 M Indonesians, Malaysians (70- Indonesians, Malaysians (70- 85%)85%)

Affluent Asian Affluent Asian MarketMarket

1 M international 1 M international patients/ year patients/ year (US$3B by 2012)(US$3B by 2012)

IndiaIndia .150 M.150 M 333 M333 M Middle East (Kuwait, Qatar, Middle East (Kuwait, Qatar, Saudi Arabia) & South Asian Saudi Arabia) & South Asian (Particularly Bangladesh)(Particularly Bangladesh)

Southeast Asia, Southeast Asia, West Asia, Africa, West Asia, Africa, UK & USAUK & USA

US$2.2 B by US$2.2 B by 20122012

MalaysiaMalaysia .122 M.122 M 94 M94 M 60% from Indonesia, 10% 60% from Indonesia, 10% from Brunei, Vietnam, from Brunei, Vietnam, Singapore & Thailand, 30% Singapore & Thailand, 30% from West Asia, South Asia from West Asia, South Asia (Bangladesh & India), Japan(Bangladesh & India), Japan

Middle East, Middle East, China, Vietnam, China, Vietnam, Myanmar, Myanmar, Cambodia, BruneiCambodia, Brunei

US$ 1B by 2010US$ 1B by 2010

PhilippinesPhilippines ?? ?? Indonesia, USA (OFWs), Indonesia, USA (OFWs), Micronesian States, South Micronesian States, South Korea)Korea)

USA, Japan, USA, Japan, Micronesian States, Micronesian States, South Korea, ChinaSouth Korea, China

??Source: Morato et. al, 2006

Medical Tourism in Asia: 2005


I. MARKET DYNAMICS

Philippine Medical Tourism

• Small in terms of volume of foreign patients as compared to its Asian neighbors • Foreign patients primarily “Balikbayans”

• No available data on total number of foreign patients treated

• 0.4% of total tourist arrivals visited for health reasons (2005 DOT Visitor Sample Survey to 5 NCR based hospitals) • Globally sought Filipino medical manpower

• Filipinos distinct quality of care, compassion and hospitality

•Reasonably- priced healthcare

• World- class medical facilities are built outside Metro Manila


Local Market:• 8.2 million population (2000, NSO),

17.4 million by 2027 (One of the more affluent regions in the Country);

• 77% of families with savings

I. MARKET DYNAMICS

Tourist Market:• Stays 10 days in the Philippines

& spends US$100/day• CL may achieve 1 million tourist arrival in 20 years due to DMIA

2007 2012 2017 2022 2027

Central Luzon


I. DATA SOURCE/ ASSUMPTIONS/ PROJECTIONS

• Coverage of Medical service - dental, beauty/ skin care, ophthalmology and diagnostic check- up.

• Sources on the Number of dental, eye, beauty/ skin, and diagnostic clinics

• 1999 DTI Business Name Directories • WEBNRS• 2006 DOH- BFAD directories• 2000 Censal population- total population by age group, sex and

sex ratio (2000, NSO)• 2003 Family, Income and Expenditure Survey (2003 FIES,

NSO)



• Should avail – 8,718,069 individuals (age 5 and above, 85% of 2007 projected CL population

• Could afford – 6,748,074 (Based on FIES, 66% of CL population)

• Will avail – 2,699,230 individuals (26% of CL population, DTI study assumption)

• DENTAL

• Should avail – 6,218,385 (age 15 to 64, 61% of CL population)

• Could afford – 2,422,078 ( Based on FIES, 24% of CL population)

• Will avail – 484,416 (.05% of CL population, DTI study assumption)

• BEAUTY/ SKIN CARE



• Should avail - 30,455 (individual age 65, .29% of CL population

• Could afford - 11,862 (based on FIES, .12% of CL population

• Will avail - 11,862 ( DTI study assumption)

• EYE SURGERY (CATARACT)-

• Should avail - 2,270,764 (individual age 40 and above, 22% of CL population

• Could afford - 1,456,551 (FIES, 14% of CL population)

• Will avail - 582,620 (6% of CL population, DTI study assumption)

• DIAGNOSTIC CHECK- UP



• Investment requirement

• 3 Million per clinic ( 2006 CIC- NIMTC's Spa establishment survey)

• Dental• minimum of P300 on prophylaxis per visit

• Beauty/ Skin Care • cheapest package for facial is P1,500

• Eye surgery (Cataract laser treatment)• quoted at P35,000/ operation

• Basic Diagnostic Check-up• priced at P1,500

• Estimated value of services



• Jobs generated

• A clinic may employ 3 to 7 workers depending on the extent of operations.


A. DEVELOPMENT OF MEDICAL CLINICS

B. VALUE OF INVESTMENTS

C.MAGNITUDE OF MARKET

D.JOBS CREATED

III. MARKET POTENTIALS


MEDICAL FACILITY DEVELOPMENT

1531,357 1,531 1,761 2,026 2,330

15

102 115132

152175

44

60 115 132152

175

40

275328

377434

499

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2000 2007 2012 2017 2022 2027

YEAR

NO. FA

CILITIE

S

Dental Beauty/ Skin Care Eye Surgery Diagnostic Check- Up


Projected data (2012-2027)Actual data (2000-2007)



PROJECTED VALUE OF INVESTMENTS

0.38

3.39 3.83 4.40 5.06 5.83

0.04

0.26 0.290.33

0.380.44

0.11

0.150.29

0.330.38

0.44

0.10

0.690.82

0.941.09

1.25

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

2000 2007 2012 2017 2022 2027

YEAR

INVE

STME

NTS

(in B

illion P

hp

Dental Beauty/ Skin Care Eye Surgery Diagnostic Check- Up




PROJECTED SALES (Local Market)

0.38 0.47 0.53 0.61 0.70 0.810.96 1.02 1.14 1.31 1.51 1.741.67 2.09 2.34 2.69 3.103.57

0.841.57

1.762.03

2.332.68

-

2.00

4.00

6.00

8.00

10.00

2000 2007 2012 2017 2022 2027

YEAR

GROS

S SA

LES

(in bi

llions

)

Dental Beauty. Cosmetic Eye Diagnostic



PROJECTED SALES (Foreign Tourists & OFWs)

1 5 8 11 14 17727

4256

7084

1

2

3

4

6

7

-

20

40

60

80

100

120

2000 2007 2012 2017 2022 2027

YEAR

GROS

S SA

LES

(in M

illion P

hp)

Dental Beauty. Cosmetic Diagnostic




EMPLOYMENT GENERATION

459

4,071 4,593 5,283 6,077 6,990

105

714804

9251,063

1,223

132

180344

396456

524

200

1,3751,640

1,8872,170

2,497

-

2,000

4,000

6,000

8,000

10,000

12,000

2000 2007 2012 2017 2022 2027

YEAR

NO. E

MPL

OYEE

S

Dental Beauty. Cosmetic Eye Diagnostic




In summary, the Medical Tourism Industry in Central Luzon, initially covered dental, beauty/ skin care, eye and diagnostic services, is worth P 2.53 B in 2000, P 7.71 B in 2007 and is expected to reach P 13.53 B in 20 years.

*(Salaries & Wages)

SALES

(Billion Php)INVESTMENT

(Billion Php)EMPLOYMENT*

(Billion Php)TOTAL

(Billion Php)

2000 1.83 0.63 0.07 2.53

2007 2.71 4.49 0.51 7.71

2012 3.05 5.22 0.60 8.87

2017 3.52 6.01 0.69 10.22

2022 4.06 6.91 0.79 11.76

2027 4.67 7.95 0.91 13.53


A. Preparation & Implementation of the Central Luzon Medical Tourism Roadmap & Strategic Development Plan (2007-2027)

B. Formation of a Central Luzon Core Group on Medical Tourism

C. Formation of a Central Luzon Medical Tourism Association

IV. ENABLING CONDITIONS


1. Central Luzon Medical Tourism (2007 - 2027): An Emerging Industry

2. 2007 - 2008 Medical Tourism Industry Development Plan

a) Planning/ Advocacyb) Human Resource Development and Research and Developmentc) Industry Players Development

A. Preparation & Implementation of the Central Luzon Medical Tourism Roadmap & Strategic Development Plan (2007-2027)

Initial Plans Made:



Issues (SWOT) Objectives Activities

Responsible Unit Date

I. PLANNING & ADVOCACY

Lack of awareness on the Medical Tourism Industry

Establish & manage a CL Medical Tourism Information Database

1. Preparation of medical registries:

a. Medical professionalsb. Health/ Medical Facilitiesc. Laboratories/ Diagnostic Centers

DOH, DOT, TESDA, DTI,

NEDA, DOLE, DILG, Hospital

owners, Medical

Professionals, business sector

Oct. ’07 to Mar. ‘08

2. Inventory of traditional medicine in Central Luzon

3. Creation of e-mail group

Jan. to Mar. ’08

4. Creation of website for CL Medical Tourism

Apr. to Jun. ‘08

Increased awareness of the public on the Medical Tourism Industry & its benefits

1. Preparation & development of a Medical Tourism Strategic Development Plan (Medical Tourism Industry Roadmap 2007-2027)

Oct. 07 to Jan. ‘08

2007 - 2008 Medical Tourism Industry Development Plan

Issues (SWOT)

ObjectivesActivities


I. PLANNING & ADVOCACY

2. Preparation & development of a Medical Tourism Industry Advocacy Plan DOH, DOT,

TESDA, DTI, NEDA, DOLE, DILG, Hospital

owners, Medical

Professionals, business sector

Oct. ’07 to Jan. ‘08

3. Incorporation of the Medical Tourism Strategic Development Plan in Regional Development Plans

Oct. ’07 to Jan. ‘08

Establish Private- Public Partnership

1. Conduct of Central Luzon Medical Tourism Cluster Stakeholders' Follow-up Meeting

‘Nov. ‘07

2. Conduct Medical Tourism Industry Advocacy to RDC, CLGCFI- CLICC, LGUs

Jan. ’07


Issues (SWOT)

ObjectivesActivities


II. HUMAN RESOURCE DEVELOPMENT & RESEARCH DEVELOPMENT

Lack of practice-enhancement trainings of medical students and/or graduates and medical staff

Facilitate sending of medical students/ graduates & medical staff to other countries to get experience and learn modern medical techniques

1. Formulation of a Human Resource & Research Development Program for the Medical Tourism Industry to include the ff:

DOH, TESDA, Medical Schools

Jan. to Dec. ‘08

a) Capability Build- Up Trainings for Medical Students/ Graduates

b) Skills & technical trainings (e.g. services on healthcare, medical, caregiver, emergency medical, biomedical equipment & massage therapy)

c) Investment Program for the Medical Tourism Industry (medical schools/ training centers/ hospitals & clinics/ diagnostic centers/laboratories, instructors/lecturers




II. HUMAN RESOURCE DEVELOPMENT & RESEARCH DEVELOPMENT

Tie-up with Filipino medical professionals/ associations abroad for transfer of skills and techniques to local professionals

1. Conduct of Teaching-Learning Seminars/ Workshops for Medical Professionals

DOH, TESDA, DOLE, Medical

Schools, Medical

Professionals/ Associations,

Hospitals

Jan. to Dec. ‘08

Moderate quality of health/ medical facilities

Improve/ upgrade health and medical facilities 1. Training on Hospital Management

DOH, TESDA,

Medical Schools

Jan. to Dec. ‘08

2. Benchmarking Mission to Medical Tourism Partner hospitals and JCI Accredited medical facilities

Feb. ’08

Intensify research into new technologies and modern medical practices 1. Conduct of research

Hospital/ Medical

facilities, DOH, DOT, TESDA,

Medical professionals

Jan. to Dec. ‘08




III. INDUSTRY PLAYERS DEVELOPMENT

Absence of a regulatory & accreditation body that would set standards for the industry

Presence of agencies & groups that would support the development of the Medical Tourism Industry in CL

Creation of a CL Core Group on Medical Tourism (DOH, DOT, TESDA, DTI, NEDA, DOLE, DILG)

DOH, DOT, TESDA, DTI.

NEDA, DOLE, DILG

Oct. ‘07

Creation of CL Medical Tourism Partners Association

CL Hospitals/ Medical

Facilities, Medical

Association/ Professionals,

Business Chambers,

Tour Operators/ Travel

Agencies, DOH, DOT,

TESDA, DTI. NEDA, DOLE,

DILG Nov. ‘07


Issues (from SWOT) Objectives Activities


Absence of a common brand for the health and wellness industry

Availability of a Brand for the promotion & development of the health and wellness industry in CL

List of CL Brand Name for the Health and Wellness Industry specifically on medical tourism (to be presented to the CL Medical Tourism Partners Association)

CL Hospitals/ Medical

Facilities, Medical

Association/ Professionals,

Business Chambers,

Tour Operators/ Travel

Agencies, DOH, DOT,

TESDA, DTI. NEDA, DOLE,

DILG

Jan- Feb. ’08

Lack of incentives for the development of medical facilities

Establishment of International Medical Zones in Central Luzon

National Strategic Framework for Health and Wellness

Jan. – Dec. ’08

Lack of foreign patients

Increase number of foreign patients to medical facilities

Develop Medical Tourism Tour Packages (Meeting of CL Medical Tourism Partners Association & Travel Agencies/ Tour Operators)

Apr. ’08

Portability of public and private insurance

Linkage with insurance companies Marketing and networking activities

Jan. – Dec. ‘08


Chair : DOH

Members: DOTNEDATESDADILGDOLE

Secretariat: DTI

Executive Committee(Agency Directors)

Planning & Advocacy(NEDA & DILG)

HRD/ R&D(DOLE & TESDA

Industry Players Development

(DOH, DTI & DOT)

B. CL Wellness Core Group

Manning System

1. Principal – Director 2. Permanent Representative – Technical Staff3. Alternate Representative – Technical Staff



C. Formation of a CL Medical Tourism Association

• Medical professionals• Doctors• Dentists• Ophthalmologist• Optometrists• Plastic/ cosmetic surgeons• Physical therapists• Occupational therapists• Nurses• Midwives• Nutritionists



THANK YOU!!!THANK YOU!!!

medical tourism in central luzon: an emerging industry

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