Why is GCC’s medical tourism on the rise?

Cairo – Decypha: Not normally the first thought that comes to mind when one thinks of the Gulf Cooperation Council (GCC) countries, yet inbound medical tourism has been on the rise in the region.

 

Healthcare providers in gulf countries are intensifying their focus on the medical tourism industries, according to an Alpen Capital report. Health ministries in the GCC are introducing policies to boost accreditation of the present healthcare facilities; hence, the attractiveness of medical tourism is being increased. The report highlighted that the prices, which are considerably lower compared to the US for instance, are encouraging the growth of medical tourism. "A heart bypass surgery in the UAE costs $44,000, nearly 66% lower than $130,000 in the US," the report noted.

 

Traveling for health purposes could be region-specific or health-service-specific, depending on the needs of the travelling patients. Countries like the U.S., Germany, Singapore and India are popular with patients for specialties that include orthopedics, oncology, organ transplants and cardiology, where decisions are lead by the quality of the services and value-based care. On the other hand, countries such as Thailand, Turkey, Hungary and Mexico welcome patients for minor optional treatments such as cosmetic surgeries, ophthalmology, hair transplants and health checkups. These are countries where the services prices, proximity and the appeal of the destination play a major role, according to Forbes Middles East.

 

Generally, inbound tourism leaves its impact on hotel occupancies in the recipient country. According to Hotlier Middle East, the GCC is witnessing a noticeable growth in hotel properties, despite the macroeconomic challenges present in the region. Many international hotel chains were able to have a significant presence in the region to capture a slice of the flourishing tourism industry, says Alpen Capital Middle East managing director Sanjay Bhatia.

Which GCC Countries Attract More Medical Tourism?

Several facilities in the GCC have obtained the Joint Commission International (JCI) accreditation – gold standard in the provision of healthcare, according to the Alpen report. UAE, Saudi Arabia, and Qatar host the majority of GCC's JCI-accredited facilities.

 

The country with the most promising prospects and one that seems to be positioning itself well in terms of healthcare and medical tourism in the GCC is Emirates, specifically the city of Dubai. According to Gulf News, Dubai is working to become one of the 15 destinations in the world in terms of medical tourism as well as the first in the region. Based on the Medical Tourism Destination Index (MTDI), which was published by the Medical Tourism Association, Dubai comes as the 17th country in the world out of 25 countries that the index includes. The city ranks the seventh in Asia and the second in the region of the Middle East and North Africa amongst the countries surveyed by the index.

 

According to Forbes Middle East, Dubai is seeking to establish a reputation as the healthcare education hub for the GCC countries through leading the labor reforms currently witnessed by the GCC countries to decrease the reliance on expatriates by creating more education facilities, supporting and funding the education of students in healthcare.

 

Dubai is making an attempt to become a leading destination for medical tourism. Inbound medical tourists from outside of Emirates are increasing to nearly 300,000 in 2015 from nearly 107,000 in 2012, thanks to the city's proximity, connectivity and attractiveness. In fact, many patients from MENA, CIS countries, Russia and sections of Africa, fly to Dubai to receive a wide range of specialized health services. The most prominent among the health services they seek include orthopedics, ophthalmology, dental care and general check-ups, according to Forbes Middle East. Dubai’s investments in private healthcare allows highly distinguished and specialized services to emerge while also allowing the recruitment of upstanding clinical operators that conform to the highest of standards, thereby raising the general healthcare quality.

 

On the other hand, to continue to implement the ambitious plan to stand as a hub for medical tourism and health care in the region, Dubai needs to address key issues in the health industry, including facilitating licensing and accreditation policies, and providing special care to supporting and developing healthcare education, an issue which nearly all GCC countries have expressed their concern about given the global shortage of qualified healthcare professionals, according to Forbes.

 

To improve the standards of healthcare and the quality of clinical talents, it is essential that GCC countries invest and encourage medical research programs that could help counter the burden of chronic diseases and enhance healthcare services to the patient population. This will attract leading surgeons to found a base in Dubai. Greater attention and more funds allocated to research could improve medical outcomes.

 

Interestingly, the Health Authority – Abu Dhabi (HAAD) and the Abu Dhabi Tourism and Culture Authority agreed in April 2017 to create a network for medical tourism to serve patients travelling from abroad, especially from Russia, China and India, according to The National. HAAD pays great attention to specialized medical services, like treatments of cardiology, ophthalmology, and diabetes.  It is worth mentioning that medical tourism is considered a major part of Abu Dhabi's 2030 vision to reshape the economy resources.

 

The case in other GCC countries

Saudi Arabia has a five-year plan that targets encouraging medical tourists to remain in KSA to receive medical care, and attracting other medical tourists from other Islamic countries, according to Keith Pollard, CEO of Intuition Communication at the International Medical Travel Journal (IMTJ). The Saudi Commission for Tourism and National Heritage has legalized a proposal to integrate religious and medical tourism to promote the KSA health services to nearly 1.6 million Muslims who might look for spiritual consolation while going through a health crisis.

Similarly to Saudi Arabia, Kuwait’s government has sought a trend to reduce the number of patients sent for treatment abroad. It is reported that in 2016, that was reduced by 50%, according to IMTJ. In the years before 2016, the numbers were also significantly declining, where the number of patients sent to London, for instance, to receive treatment, declined from 1,100 in 2013 to 500 in 2014.

 

In terms of Bahrain, it is one of the healthiest countries in the GCC, with infant mortality declining, and average life-expectancy increasing, according to Medical Tourism Magazine. Only 2.6%of the population is over the age of 65 and 77% are between the ages of 15-64, with the median age being 30.

 

The Bahraini Health Minister has stated that Bahrain plans to decrease the number of citizens sent to receive treatment abroad. Medical experts fly in to the country as part of a cost-saving procedure to implement in 2016, according to IMTJ. Health professionals from India, Singapore, Thailand, Germany, the UK, Belgium and the US have agreed to take part in the new scheme. The Bahraini government is specifically targeting Russian investors to enhance healthcare facilities for receiving medical tourists.

 

However, the problem with the Bahraini healthcare system is that less money is spent on healthcare per capita compared to the country's European counterparts, spending nearly $792 per capita, while Germany, for instance, spends $2,817.

 

Bahrain is also considered understaffed, with 1.442 available physicians per 1000 patients. The trends in Bahrain seem to be similar in the GCC nations with the inclination to increase medical tourism and improving the local healthcare industry. "Frost & Sullivan expect the total of GCC medical expenditures to triple by 2018, from $46.12 billion to $133.19 billion. Most GCC nations have government run healthcare making growth difficult because of the other expenses these governments have. Nations like the United Arab Emirates (UAE) and Saudi Arabia have recently embraced public-private partnerships (PPPs). These PPPs have saved the governments around 25% of healthcare costs," according to Medical Tourism Magazine.

 

Moving Forward

Currently, despite the efforts exerted by both the private and public sectors, indicators such as the density of beds provision and availability of doctors and nurses in the region lag those in developed economies. The average number of beds per 1,000 people in GCC countries is 1.9, compared to three beds in Singapore, the UK and the US, and more than 8 in Germany. Average healthcare spending as a percentage of the GDP in the GCC is estimated at 2.3%, compared to 7.6% in the UK and 8.1% in the US.

 

Yet, over the upcoming period, the most rapid growth in healthcare spending is predicted to be in the MENA region, based on an INSEAD report under the name "The Healthcare Sector in UAE". The region is expected to continue witnessing an annual average increase of nearly 9% over the period from 2014 to 2018, due in part to population growth and the efforts to increase access to healthcare.

 

By Reem Hosam El Dein

 

Decypha Contribution Time: 07-Jun-2017 09:37 (GMT)
Decypha Last Update Time: 08-Jun-2017 08:15 (GMT)