Medical Tourism Market to Reach $32.5 Billion by 2019

High cost of medical treatment in developed countries has fueled the development of medical tourism, causing patients to visit other destinations for cheaper yet sophisticated treatment. Transparency Market Research, in a recent report, studied the emergence and growth of the global medical tourism industry.

According to the report, the value of the global medical tourism industry was pegged at US$10.5 billion in 2012. This is estimated to grow to US$32.5 billion by 2019, developing at a strong compound annual growth rate (CAGR) of 17.9% during the forecast period.

Medical tourism is considered to be the direct impact of the globalization of healthcare services. The industry is recognized to have immense growth potential in numerous emerging economies, as a rising number of countries are striving to become major exporters of medical services.

Cultural similarities and geographic proximity play a vital role in the development of the medical tourism industry. Some of the key countries that have emerged as prominent centers of medical tourism are Costa Rica, South Korea, the Philippines, Thailand, Brazil, Turkey, India, Taiwan, Poland, Dubai, Mexico, Malaysia, and Singapore.

Asia has become one of the most prominent regions in the medical tourism industry over the past few years owing to the high quality of healthcare infrastructure and low cost of treatment. In 2012 alone, the region generated more than US$6.4 billion from the treatment of an estimated 2 billion foreign patients.

Thailand has been the most popular destination for cosmetic surgeries. In 2012, an estimated 45% share of the total foreign tourist arrival in Asia was bagged by Thailand, which received 2.5 million foreign patients, mostly from Western Europe.

India is known for its specialization in cardiac surgeries, while Singapore specializes in complex surgical procedures. Malaysia has been gaining popularity due to the availability of modern healthcare infrastructure and the presence of highly skilled medical professionals.

Government support and cost-effective treatments are likely to make Malaysia the leading destination for medical treatment by the end of the forecast period. In 2012, 671,000 patients were treated in the country, which is expected to grow to 2 million by 2019.