THAILAND AS 'HEALTH TOURISM HUB OF ASIA': Offering Quality Medical care, Dental Care and Health Check-ups

Thailand's track record on the medical frontier has frequently won international acclaim, particularly in areas in which it has considerable expertise such as in the realm of tropical and infectious diseases, cardiac surgery and post-operative care, cosmetic and reconstructive surgery, dentistry, the treatment of bone-related ailments and cataracts, and pharmacology to name a few. It comes as no surprise that Thailand is home to Asia's first internationally-accredited hospital and also enjoys an established reputation as 'Spa capital of Asia'.

Source: Department of Export Promotion, Ministry of Commerce

In 2002, the number of foreign patients seeking treatment in Thailand grew by 13% over the previous year with some 632,300 foreigners visiting 33 private hospitals. Of this total, expatriate residents in Thailand (189,000), staff of international organisations and their family members and other visitors from the neighbouring countries and Asia, (378,000), and 'visiting patients' from Europe (63,000), represented 60% of the total. Tourists in need of medical attention or treatment during their stay in the country accounted for another 30%, and individuals who specifically travelled to Thailand for medical treatment or health services accounted for another 10%.

The Kingdom's legendary tradition of superior service and gracious hospitality is working its magic in a new sector. Timeless Thai values and traditions are very much alive in places where it is least expected - in hospitals and clinics around the country. Patients are welcomed as 'guests' and made to feel at home in unfamiliar surroundings. The reception is gracious and courteous. Medical staff consistently provide superior service, often surpassing expectations.

Spa operators likewise report that guests are charmed by the traditional 'wai' - a courteous greeting gesture that conveys profound respect, infinite warmth, hospitality and friendliness. The 'wai' is perceived by visitors to be uniquely and distinctively Thai. The magic is taking hold. As news gets around that Thailand offers superior healthcare and medical services at highly affordable rates, the destination is attracting an ever-increasing numbers of 'visiting patients'.

Health tourism, a novel concept, is a 'rising star' and offers great promise in generating foreign exchange earnings for the country. According to the 2003 forecast projected by Thailand's Ministry of Public Health (MPH), hospitals in Thailand will be treating a total of 730,000 foreign patients generating an estimated 19.826 billion baht in foreign exchange earnings for Thailand.

The Royal Thai Government sees vast potential in fast-tracking the development of Thailand's healthcare and health-related services. The mission spearheaded by the Ministry of Public Health and the Ministry of Commerce aims to firmly establish Thailand's leadership position on three fronts - as 'Health Tourism Hub of Asia', the 'Wellness Capital of Asia' and 'Thai herbs for health'. Destinations targeted for the health and well-being 'blitz' plan are Bangkok, Chiang Mai, Phuket and Samui.

As 'Health Tourism Hub of Asia', the priority for medical services is to ensure that the destination is perceived as being a Quality Destination in the delivery of superior medical and health-related services with medical care, dental care, and medical check-ups being the core products offered.

Assessment of the Growth Potential
Dr Narongsakdi Aungkasuvapala, Director-General of the Department of Health Services Support of Thailand's Ministry of Public Health explains, "The 2003 revenue target of 19.8 billion baht in foreign exchange earnings set for the medical services sector is described as being 'modest'. The 2005 revenue projection is 23 billon baht representing a 16.4% increase over the 2003 target".

Dr Aungkasuvapala also highlighted the fact that the Thai government recognises that the forecasted growth should not be achieved at the expense of the quality of healthcare services made available to the general population but will focus on converting excess capacity into national assets. A study of available resources and capabilities undertaken by the Ministry of Public Health in 2002 indicates that existing resources and facilities are currently under-utilised thereby offering vast potential for converting 'excess capacity' into growth. There are currently a total of 471 private sector hospitals in Thailand with some form of accreditation as required by the MPH and all are equipped to deal with medical emergencies. Of these, 33 currently offer medical consultation and treatment to patrons who are Thai as well as expatriate residents and 'visiting patients' from abroad as they also have capabilities to cater to the needs of patients from abroad such as individuals on staff with foreign language skills, an awareness and understanding of the special needs of different cultures including the ability to accommodate special dietary needs for in-patients, for example. The Ministry of Public Health is confident that by working in partnership with the Private Hospital Association and its members, the targets set are realistic and achievable.

	'WELLNESS CAPITAL OF ASIA': Offering World-class Healthcare services

Source:Thai Spa Association 2003

Thailand's spa sector has witnessed phenomenal growth in the past two years. A study undertaken by Intelligent Spas reports a growth of 64% for the period 2000-2002. Between June 2001 - June 2002, some 230 Thai spa operators attracted a total of 3.3 million spa users, out of which 2.5 million, or 79% of the country's total spa clientele, were overseas spa patrons contributing a total of US$85 million to Thailand's foreign exchange revenue. All indicators suggest that there is vast potential in Thailand's health services sector.

With the destination firmly established as the 'Wellness Capital of Asia', achieving world-class status is next on the national agenda. The Thai government realises that it is of vital importance to offer assurance to spa guests and visitors to Thailand that safety, hygiene, service quality and quality assurance are top priorities.

To achieve planned and sustainable growth in this sector, the national strategy addresses the critical step of building consumer confidence and trust in the range of products Thailand offers. This is to be achieved through the introduction of quality standards, registration, certification and regulation, and legislation. Mechanisms put in place to ensure compliance and enforcement, with processes to drive the systematic improvement of standards. The comprehensive plan also includes guidelines and measures to ensure fair pricing.

"Although the Thai government has had very little involvement and has not extended much support to the spa sector in the past, the sector has performed exceptionally well and currently generates 3.6 billion baht. With the MPH pushing for quality standards and a regulatory framework, a forecast of 6.3 billion baht representing an increase of 75% is achievable," Director-General Dr Aungkasuvapala added.

Spa operators around the world have opted for self-regulation. Other than the presence of the International Spa Association or ISPA, there is not a global organisation, agency or legal entity responsible for setting global standards for spas per se. Thailand is about to set an extraordinary precedent. The state has been working jointly with private sector operators and the Thai Spa Association to develop specific standards for the Thai spa industry and will be taking an additional step beyond current practice - the regulation and the enforcement of industry standards via legislation.

Under the proposed draft legislation, the MPH assumes the role of custodian overseeing the growth and development of the spa sector with one of its duties being to assist in the development of guidelines and specific standards for the Thai spa industry. Local industry standards will be developed in accordance with existing benchmarks for quality adopted by the global spa industry - a move which lifts the bar for health spas, traditional Thai massage, and long-stay healthcare products and services - the three product champions in this category.

Traditional Thai Massage
Believed to impart formidable healing powers, ancient folk traditions are carefully preserved through the traditional art of Thai massage. Traditional Thai herbs are often featured as part of the therapy. For example, the use of fragrant Thai herbs in warm poultices. Hence as one of the offerings on the menu, Thai massage promotes cross-sector linkages and synergy.

Traditional Thai massage embodies qualities and traits inherent in Thai culture and enables spa guests and visitors to Thailand to experience fascinating dimensions of 'Thai-ness' and the richness of Thai heritage, up close and personal.

	THAI HERBS FOR HEALTH Thailand - Origin of Precious Herbs for Superior Health

As the "Thai Spa" concept takes root worldwide, it is anticipated that this will lead to an increase in demand for Thai herbal products. With "Thai-ness" and Thai herbs being the core ingredients of the Thai-style spa, this is an area that supports cross-sector linkages. Herbal products and herbal teas, food supplements, cosmetics and beauty products are slated to be the key product categories with high potential on the world market.

"If we manage to successfully undertake all of the following critical steps with the MPH working jointly with other agencies and private sector operators in a coordinating role to set quality standards, to raise the quality of Thai herbal health and beauty products, to develop packaging, undertake PR and marketing, winning consumer confidence, and connecting products to key customer segments in the target market, in 2003, Thailand should be able to achieve 21.5 billion baht (approximately US$500 million), representing an increase of 91% in sales. As for 2004, the forecasted growth for the sector is 51 billion baht or an increase of 48% from the 2003 target," Dr Aungkasuvapala added.

2003 FORECAST FOR EXPORTS = 32 billion baht
	Current Export (in '000,000 Baht)	Target for Export (in '000,000 Baht)
Thai Herbs	3,000	8,000
Dietary supplements	5,000	12,000
Cosmetics	2,000	8,000
Drinks/Herbal Teas	1,000	4,000
Total	11,000	32,000

	THAILAND AS A 'CENTRE OF EXCELLENT HEALTH OF ASIA': THE KEY STRATEGIES FOR FUTURE SUCCESS

"Relative to five or ten years ago, it is now much easier to convince private sector players to focus on raising standards and deliver quality products and services. There is much greater awareness and operators have come to realise that delivering quality translates into greater business efficiency, lower operating costs and increased profits", notes Dr Aungkasuvapala.

Research and development (R&D), which comes under the direct responsibility of the MPH, is a central component of the overall plan to raise standards and deliver consistently high quality products. Once R&D findings are available, the MPH will work jointly with private sector operators to achieve higher standards and drive continuous improvement in the sector's performance.

PURSUING AN INTEGRATED APPROACH FOR MARKETING PROMOTIONS AND THE FACILITATION OF SERVICES

"Now that we have set a clear direction and strategy for the development of the sector as one of the key drivers of economic growth, the next critical step in the process is to integrate efforts undertaken by the state sector on the one hand and the private sector on the other. These are the two sides of the Thailand coin. Achieving integration in each of the areas is insufficient. There must be seamless integration of both sides of the Thailand coin. State and private sector synergy leads to greater unity and cohesiveness and results in more efficient utilisation of existing resources," Dr Aungkasuvapala reiterated.

The MPH role in the development process will be to identify and select high potential products and interface with operators and service providers in the development of product potential and to be the centre of integration for all three product lines - medical services, health services, and Thai herbal products for health.

The MPH will need to work closely with other ministries and agencies of the Thai government such as the Ministry of Commerce, the Ministry of Foreign Affairs, the Ministry of Tourism and Sports, and others such as the Tourism Authority of Thailand (TAT) and Thai Airways International to promote medical care, healthcare and health products and services abroad hence the establishment of a common vision and strategic direction, joint strategy, and shared goals, and the development of integrated plans are key factors in the achievement of the set objectives for 2003-2005 and in ensuring future success.

Integrated plan will be developed in several areas including marketing and promotion, and public relations. Critical steps include the creation of a network of communication channels for coordinated product promotion and the dissemination of information such as through existing web sites of various ministries, organisations and agencies, and customer contact points for servicing inquiries. An integrated approach also involves working in partnership with state entities and various private sector associations, organisations, and agencies to incorporate medical and healthcare services or health tourism into promotional packages. Proposed plans for the launch and roll-out of the TAT Privilege Card provides a welcome opportunity. Backed by a 24-hour call centre, the service infrastructure for the TAT Privilege Card serves as an ideal centre for collaboration and readily provides an additional channel for marketing and promoting Thailand's medical services and healthcare products.

The MPH will also oversee the standardisation of information presented by various organisations and agencies such as in the dissemination of information through web sites. This will be facilitated by the use of Information Communication Technology (ICT) that links several different web-based databases and other information channels.

LINKAGE AND CROSS-SELLING OF RELATED SERVICES AND PRODUCTS
Linkage with other related sectors allows for the rapid expansion of channels and drives faster growth.

THE WINNING MIX FOR HEALTH TOURISM
INGREDIENTS FOR SUCCESS

Beyond the professionalism and technical expertise of medical staff or spa operators, the range of high quality healthcare and medical care products and services available at highly affordable prices, and value for money, there are several other pluses that add to the attractiveness of the destination as a health tourism centre.

	A welcoming destination with an appreciation of the needs of different cultures and the availability of support services to serve diverse needs.
	Service Quality
	Thai-ness and enchanting Thai traditions Patients and users of other hospital and spa services are welcomed as "guests". Gracious and courteous reception is characteristic of traditional Thai hospitality.
	Destination diversity Thailand offers a myriad of enjoyable ways in which one can achieve a speedy recovery. Take life at a more leisurely pace at any of the hundreds of resorts around Thailand enjoying the fresh mountain air or sun, sea and sand. Or simply indulge on a diet of delicious Thai fruits and health-restoring Thai cuisine, rejuvenating herbal therapies offered by Thai spas combined with Thai massage. Recuperating has never been more pleasurable.
	Attractive prices. Value for money. Guests and visitors are of the view that Thailand offers value for money. There is no doubt that visitors seeking treatment in Thailand get more for only a fraction of what it costs back home leaving them with extra to spend on their favourite leisurely pursuits such as sight-seeing, shopping, golfing, spa and beauty treatments, and other treats.

Thailand has long been a centre of ancient healing traditions based on herbal medicine and holistic treatments that have evolved from folk knowledge as well as Asian well-being therapies such as Indian Ayurvedic and Chinese practices. With the growing popularity of holistic healing techniques that restore balance and rejuvenate mind, body and spirit, in addition to conventional medical treatment, Thailand offers a one-stop shop that leaves you looking good and feeling great.

Contact information

Participating Members of the Private Hospital Association

IN BANGKOK
Bangkok Hospital
Tel: 66+ (0)-2318-0066
Fax: 66+(0)-2310-3327

Bangkok Christian Hospital
Tel: 66+(0)-2233-6981 to 7
Fax: 66+(0)-2236-2911

Kasemrat Prachacheun Hospital
Tel: 66+(0)-2910-1600
Fax: 66+(0)-2910-1649

Saint Louis Hospital
Tel: 66+(0)-2675-5000
Fax: 66+(0)-2675-5200

Central General Hospital
Tel: 66+(0)-2552-8801 to 8
Fax: 66+(0)-2552-0666

Bumrungrad Hospital
Tel: 66+(0)-2253-0250
Fax: 66+(0)-2667-2525

Phaya Thai 1 Hospital
Tel: 66+(0)-2245-2620 to 8
Fax: 66+(0)-2245-9616

Phaya Thai 2 Hospital
Tel: 66+(0)-2617-2444
Fax: 66+(0)-2617-2454

Rama 9 Hospital
Tel: 66+(0)-2248-8026
Fax: 66+(0)-2248-8018

Ramkamhaeng Hospital
Tel: 66+(0)-2374-0200 to 16
Fax: 66+(0)-2374-0804

Vibhavadi Hospital
Tel: 66+(0)-2561-1258 to 67
Fax: 66+(0)-2561-1838

Samitivej Hospital
Tel: 66+(0)-2392-0011
Fax: 66+(0)-2391-1290

IN PHUKET
Krungthep Phuket Hospital
Tel: 66+(0)-7625-4425
Fax: 66+(0)- 7625-4430

IN CHIANG MAI
Chiang Mai Ram Hospital
Tel: 66+(0)-5322-4851
Fax: 66+(0)-5322-4861