Medical Tourism in Central Luzon: An Emerging Industry

Medical Tourism in Central Luzon: An Emerging Industry Department of Trade and Industry- 3 25 October 2007

Medical Tourism in Central Luzon: An Emerging Industry • MARKET DYNAMICS • DATA SOURCE/ ASSUMPTIONS/ PROJECTIONS • MARKET POTENTIALS • ENABLING CONDITIONS

Medical Tourism in Central Luzon: An Emerging Industry • 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

Medical Tourism in Central Luzon: An Emerging Industry • MARKET DYNAMICS Medical Tourism in Asia: 2005 Source: Morato et. al, 2006

Medical Tourism in Central Luzon: An Emerging Industry • 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

2007 2012 2017 2022 2027 Medical Tourism in Central Luzon: An Emerging Industry • MARKET DYNAMICS Central Luzon • 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 • 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

Medical Tourism in Central Luzon: An Emerging Industry • 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)

Medical Tourism in Central Luzon: An Emerging Industry • DATA SOURCE/ ASSUMPTIONS/ PROJECTIONS • DENTAL • 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) • BEAUTY/ SKIN CARE • 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)

Medical Tourism in Central Luzon: An Emerging Industry • DATA SOURCE/ ASSUMPTIONS/ PROJECTIONS • EYE SURGERY (CATARACT)- • 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) • DIAGNOSTIC CHECK- UP • 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)

Medical Tourism in Central Luzon: An Emerging Industry • DATA SOURCE/ ASSUMPTIONS/ PROJECTIONS • Investment requirement • 3 Million per clinic ( 2006 CIC- NIMTC's Spa establishment survey) • Estimated value of services • 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

Medical Tourism in Central Luzon: An Emerging Industry • DATA SOURCE/ ASSUMPTIONS/ PROJECTIONS • Jobs generated • A clinic may employ 3 to 7 workers depending on the extent of operations.

Medical Tourism in Central Luzon: An Emerging Industry • MARKET POTENTIALS • DEVELOPMENT OF MEDICAL CLINICS • VALUE OF INVESTMENTS • MAGNITUDE OF MARKET • JOBS CREATED

Medical Tourism in Central Luzon: An Emerging Industry • MARKET POTENTIALS Projected data (2012-2027) Actual data (2000-2007)

Projected data (2012-2027) Actual data (2000-2007) Medical Tourism in Central Luzon: An Emerging Industry • MARKET POTENTIALS

Medical Tourism in Central Luzon: An Emerging Industry 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)

Medical Tourism in Central Luzon: An Emerging Industry • ENABLING CONDITIONS • Preparation & Implementation of the Central Luzon Medical Tourism Roadmap & Strategic Development Plan (2007-2027) • Formation of a Central Luzon Core Group on Medical Tourism • Formation of a Central Luzon Medical Tourism Association

Medical Tourism in Central Luzon: An Emerging Industry • ENABLING CONDITIONS • Preparation & Implementation of the Central Luzon Medical Tourism Roadmap & Strategic Development Plan (2007-2027) Initial Plans Made: • Central Luzon Medical Tourism (2007 - 2027): An Emerging Industry • 2. 2007 - 2008 Medical Tourism Industry Development Plan • Planning/ Advocacy • Human Resource Development and Research and Development • Industry Players Development

2007 - 2008 Medical Tourism Industry Development Plan

Medical Tourism in Central Luzon: An Emerging Industry • ENABLING CONDITIONS • CL Wellness Core Group Executive Committee (Agency Directors) Chair : DOH Members: DOT NEDA TESDA DILG DOLE Secretariat: DTI Planning & Advocacy (NEDA & DILG) HRD/ R&D (DOLE & TESDA Manning System 1. Principal – Director 2. Permanent Representative – Technical Staff 3. Alternate Representative – Technical Staff Industry Players Development (DOH, DTI & DOT)

Medical Tourism in Central Luzon: An Emerging Industry • ENABLING CONDITIONS • Formation of a CL Medical Tourism Association • Medical professionals • Doctors • Dentists • Ophthalmologist • Optometrists • Plastic/ cosmetic surgeons • Physical therapists • Occupational therapists • Nurses • Midwives • Nutritionists

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Medical Tourism in Central Luzon: An Emerging Industry

Medical Tourism in Central Luzon: An Emerging Industry

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