Overview
India is emerging as one of the favourite destinations for foreign travellers. Several factors have accounted for the emergence of India as a tourist hotspot. One of the reasons which this paper tries to examine is the growth of medical tourism in India. The twin sectors of tourism industry and health industry has vast potential for the generation of foreign exchange and employment opportunities for the country. Medical tourists travel across international borders to obtain health care. Today medical tourism is emerging as a multibillion-dollar industry. It has to be noted here that prime objective of medical tourists is getting good quality medical treatment at a reasonable cost. India has emerged as the most sought after destination by medical tourists because it has availability of world class doctors at affordable prices when compared to other developed countries of the world.
Globalization has led to the emergence of tourism as one of the fastest growing service industry. Tourism when carried out for getting medical care is referred to as medical tourism. There is lot of potential in this sector and it can possible be the next biggest foreign exchange earner for India. Medical tourism is a growing business with many countries of the world fighting for a share in the world medical tourists. Medical tourism indeed was not known to the world a few years ago and it was hard to think of these two different services to come together. Tourism and travel was associated with leisure activity free from constraints and obligations. On the other hand hospital evokes sights of constraints and sufferings.
Medical tourists in India basically come from Middle East, Iran, Pakistan, Bangladesh, Afghanistan, Turkey, Europe and United States of America (USA). The leading players catering to medical tourist in India are- the Apollo Hospitals, Escorts Hospital, Fortis Hospitals, Breach Candy, Hinduja, Mumbai’s Asian Heart Institute, Arvind Eye Hospitals, Leelawati Hospitals, Fortis Healthcare, B.M Birla Heart Research Center, Christian Medical College, Manipal Hospitals, Shankara Nethralaya etc. Public sector hospitals lack in catering to medical tourists but the All India Institute of Medical Sciences (AIIMS) is doing well in this area. It receives patients from as many as 16 countries, mainly for complex surgical procedures. At AIIMS a dedicated healthcare team named International Healthcare Service team takes care of patient’s right from arrival till their departure. The centers emerging as medical hubs in India are Bangalore, Chennai, Mumbai and New Delhi.
Table 1: Major Players in Indian Medical Tourism Industry
| NUMBER OF BEDS | TURNOVER (Rs. Millions) | PERCENTAGE REVENUE FROM INTERNATIONAL PATIENTS | MAJOR INTERNATIONAL MARKETS |
ESCORTS |
326 |
2180 |
11.9 |
SAARC, East African Countries, Afghanistan |
APOLLO |
1500 |
2010 |
15 |
Middle East |
INDRAPRASTHA- APOLLO |
650 |
1650 |
7.3 | Nepal, Bangladesh, Sri Lanka, Gulf and Africa |
HINDUJA |
351 |
1350 |
3 |
African and SAARC countries |
JASLOK |
376 |
1080 |
10 |
Japan, Middle East and African Countries |
The services offered by Indian medical tourism industry can be divided into wellness tourism, alternative systems of medicine, cosmetic surgery, advanced and lifesaving healthcare. The wellness tourism industry involves spas, stress relief, rejuvenation centers. Alternative systems of medicine include Ayurveda, siddha treatment for diseases etc. The cosmetic surgery industry includes dental care, plastic surgery, breast enhancement, tummy reduction etc. The advanced and life savings healthcare includes open transplants, cardio-vascular, eye treatment, in-vitrio fertilization (IVF) etc. The medical services in India that attract international attention predominantly include dental and eye care treatment, orthopedics and trauma, cardiac care including surgery, urology, neurosurgery, plastic and cosmetic surgery, laparoscopic surgery, gastroenterology, kidney transplant and knee/hip surgeries12 The alternative medicine services available in India namely unani, Ayurveda, homoeopathy, naturopathy and wellness services including yoga and meditation are increasingly becoming popular among foreign patients as non- surgical treatment for various ailments. Kerala for Ayurveda and Kairali massage, Uttarakhand for yoga and meditation, Goa for holistic living, Rajasthan for spas and heritage living, are some of the world- renowned places in India for alternative medicine13
Table 2: Classification of Services Offered by Medical Tourism Industry
Wellness Tourism | Alternative Systems of Medicine |
Cosmetic Surgery | Advanced and Life Savings Healthcare | |
Services Offered |
Spas, Stress Relief, Rejuvenation centers |
Ayurvedic, Siddha treatment for diseases e.g. Arthritis, Rheumatism | Dental Care, Plastic Surgery , Breast enhancement, Tummy reduction , Skin Treatment | Open transplants, cardio vascular surgery, Eye treatment , Hip Replacement , In vitrio fertilization |
Profit Margin |
Low |
Low |
Medium |
High |
Key Competitors |
Thailand, South Africa |
—- |
South Africa, Cuba, Thailand |
Singapore, Taiwan, Jordan, Thailand |
India’s Strength |
Low- Thailand has captured a significant share of the market |
High- Kerala is popular for this service |
Low- South Africa and Thailand lead in plastic Surgery |
High- India has strong image on medical tourism |
There are many reasons for the growth of medical tourism in India. The primary reasons cited for this are the cost advantage which Indian health care sector enjoys in comparison to other countries. Along with cost advantage the services are offered by internationally experienced specialists. This mixture of world class facility at affordable cost makes India one of the top five most favored medical tourist destinations in the world. India is also endowed with world acclaimed tourist destinations. India provides vide range of tourist destinations with natural beauties (Jammu, Srinagar, Shimla, Dehradun, Kerala backwaters, beaches of Chennai, Mumbai, Goa, Kolkata etc.) heritage sites (Western ghats, Sunderbans, Nilgiris,Ajanta,Ellora and Elephanta caves) spiritual destinations (Varanasi, Haridwar, Bodh Gaya, Ajmer Sharif, Churches of Goa ) and Metropolitan cities (Delhi, Mumbai, Bangalore, Hyderabad). This gives the tourists visiting India a variety of options to include along with the treatment of their ailments.
Other reason for the growth of medical tourism in India is the comparative cost advantages of India vis-à- vis other countries. This difference in cost is depicted in the table below:
The table below depicts the cost difference between India and other countries. When one compares cost between India and United States of America (USA) it can be see that there is huge difference between the two. For the heart bypass procedure the difference amounts to $ 1,20,000. Between India and Thailand the cost difference is not much but India scores well in the state-of-art technology and have world class hospitals and doctors.
Table 3: Cost Comparison between India, USA, Thailand and Singapore
(Approximated figures in US$)
Procedure | India | United States of America (USA) | Thailand |
Heart Bypass | 10,000 | 1,30,000 | 11,000 |
Heart Valve Replacement | 9,000 | 1,60,000 | 10,000 |
Angioplasty | 11,000 | 57,000 | 13,000 |
Hip Replacement | 9,000 | 43,000 | 12,000 |
Hysterectomy | 3,000 | 20,000 | 4,000 |
Knee Replacement | 8,500 | 40,000 | 10,000 |
Spinal Fusion | 5,500 | 62,000 | 7,000 |
Medical Tourism is one of the fast emerging service sectors in world and in India. India has gained comparative advantage in some of the medical facilities and is also becoming one of the most favored tourist destinations. Step needs to be taken to further develop this industry. This needs consistent and regular efforts at the level of government and the citizens. Medical tourism can be a sector which can help in generating foreign exchange and also employment for its people.