Medical Tourism, an Opportunity for Growth

Nejc Jus Economic Research Manager World Travel & Tourism Council

wttc.org @wttc @wtandtc @wttc @wttc Membership Snapshot 200+ Members (CEOs and Chairs) from all industries and geographies in Travel & Tourism

AIRLINES & TRAVEL AGENCIES & DESTINATIONS & HOTELS/LODGING CRUISE TECHNOLOGY OTHER AIRPORTS TOUR OPERATORS ASSOCIATIONS

EUROPE MID EAST AFRICA

AMERICAS

APAC

01/10/2020 2 We conducted one-to-one interviews with 80% of our Members and identified the top 3 Strategic Priorities

Security & Travel Crisis Preparedness, Sustainable Facilitation Management & Growth Recovery

01/10/2020 3 For 30 years we have been quantifying the impact of Travel & Tourism in 185 countries in our annual Economic Impact Research

CITY TRAVEL & TOURISM TRAVEL & TOURISM TRAVEL & TOURISM ECONOMIC IMPACT SECTOR BENCHMARKING FOCUS RESEARCH 01/10/2020 4 Global 2.5% 3.5% 10.3 % Global GDP Travel & Tourism Travel & Tourism total Performance growth GDP growth contribution to global GDP

Travel & Tourism Economic 330 mn 1/10 1/4 Impact 2020 (2019 Figures) Jobs supported Jobs supported of all new jobs created by Travel & Tourism by Travel & Tourism came from Travel & Tourism

28.7 % 71.3 % 21.4 % 78.6 % International vs Domestic Business vs Leisure Spend Spend Spend Spend

01/10/2020 Source: WTTC EIR 2019 Data 5 Global Recovery Scenarios 2020 & Economic Impact from COVID-19

BASELINE SCENARIO DOWNSIDE SCENARIO

Travel & Tourism Jobs: Travel & Tourism Jobs: 121.1 MILLION job losses ↓37% 197.5 MILLION job losses ↓60%

Travel & Tourism GDP: Travel & Tourism GDP: $3,435 BILLION loss ↓39% $5,543 BILLION loss ↓62%

Global Visitor Arrivals: Global Visitor Arrivals: International ↓53% Domestic ↓34% International ↓73% Domestic ↓64%

01/10/2020 6 WTTC Research Reports

2019/2020 • T&T economic impact of countries • T&T economic impact of cities • Economic impact of medical tourism • Destination 2030 • Mobile payments • T&T - driving women’s success • Megatrends & implications for T&T • T&T - generating jobs for youth • Benchmarking report • Economic impact of wildlife tourism • Best practices

01/10/2020 7 Why research medical tourism?

• A growing number of countries have • To understand the size of the sub-sector recognised the opportunities of medical across the world tourism as a catalyst for socio-economic • To showcase the best policies/initiatives from development countries supporting the development of the • Medical tourism supports: sub-sector - Quality education - Highly skilled workers - Favourable visa policies - Accessible and well-developed infrastructure - Promotion of a country’s attractiveness

01/10/2020 8 Health tourism spectrum

Stem-cell tourism Transplant tourism Abortion tourism Cosmetic surgery

Fertility tourism

Medical tourism Health tourism Wellness tourism

Dental tourism

Spa tourism

Illness Health Wellness

Curative Preventative Promotive

Source: Research for TRAN Committee – Health tourism in the EU: a 01/10/2020 general investigation, 2017 and Hall, 2011 9 Approach

• Concepts and definitions of health tourism vary • Data on inbound and/or outbound medical across countries tourism spending is available for 115 countries • We need definition that is aligned and can • Inbound medical tourism spending data is compare data across countries available for ten of the G20 economies – Brazil, Canada, France, India, Italy, South • Medical tourism, referred to as ‘health-related Korea, Mexico, Turkey, UK and USA personal travel’ by the International Monetary Fund (IMF), is defined as the products and • Our research has focussed solely on services bought by people who travel abroad international medical tourism primarily for medical and health-related reasons – includes spending on food, accommodation & local transport

01/10/2020 10 Medical tourism Where do international medical across the world tourists spend the most? Inbound medical tourism spending, 2017, % of world's total

US$ bn Other 19% 12

S. Korea United States 8 4% 36% Hungary 6 4% UK 4 4% Costa Rica 4% 2 Jordan 4% France 0 Thailand 7%

5% Belgium Turkey

2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2000 6% 7% Source : Oxford Economics/Haver Analytics, IMF 01/10/2020 11 Top 15 largest countries Inbound medical tourism spending in 2017

4,0 14%

3,5 12% 12% 3,0 11% 10% 2,5 8% 2,0 7% 6% US$ billion US$ 1,5 5% 4% 1,0 4% 3% 3% 0,5 2% 2% 2% 1% 2% 1% 1% 1% 1% 0,0 0%

Inbound medical tourism spending (US$ bn) Inbound medical tourism spending as a share of total inbound travel spending (%)

01/10/2020 Source : Oxford Economics, IMF 12 Top 15 largest countries Outbound medical tourism spending in 2017*

2,5 45%

40% 40% 2,0 35% 30% 1,5 25% 21% 20%

1,0 US$ billion US$ 15% 15% 13% 14% 14% 0,5 10% 5% 4% 3% 2% 1% 1% 2% 2% 0,0 0,3% 0,4% 0%

Outbound medical tourism (US$ bn) Outbound medical tourism spending as a share of total outbound travel spending (%)

Source : Oxford Economics, IMF 01/10/2020 13 *Data for Kuwait, the Netherlands and Canada is from 2015 Policies supporting medical tourism

As destinations work towards developing their medical tourism sub-sector, the following elements should be considered as governments develop their strategies and policies: • Establishing smart regulation and • Defining the skills gap and developing recognised accreditation/ training to enhance the talent certification of medical practitioners • Designing and implementing targeted and facilities marketing strategies • Developing enabling visa facilitation • Creating the financial incentives to policies which support the attract investment into the sub-sector development of this sub-sector

01/10/2020 14 Concluding remarks

• Medical tourism has become an important niche market, supported by government policies and private sector initiatives

• WTTC expects that with the right policies, support and regulation, medical tourism will continue to grow across developed and emerging economies

• Potential to support quality education, highly skilled workers, promotion of a country’s attractiveness

• A catalyst for social and economic development

Nejc Jus Economic Research Manager World Travel & Tourism Council

[email protected]

wttc.org @wttc @wtandtc @wttc @wttc