A Study of Potential Medical A Study of Potential Medical Tourists: Marketing Tourists: Marketing Recommendations for CyprusRecommendations for Cyprus

Dr. Michael GuirySenior FellowCenter for Medical Tourism Research (CMTR)University of the Incarnate Word (UIW)San Antonio, Texas, USA

AgendaAgendaDescribe the CMTRMedical Tourism ModelCMTR Research on Potential U.S.

Medical TouristsResearch on European Medical

TourismCyprus and the Medical Tourism

ContinuumMarketing Recommendations

About UsAbout UsCenter for Medical Tourism

Research◦First and leading academic-based

research center in this industry (Medical & Retirement Tourism/Travel)

◦Non-profit organization◦Motivated to spread the word and

influence key stakeholders◦Key members have years of

healthcare and international business experience

Model for Understanding the Model for Understanding the Drivers of Medical TourismDrivers of Medical Tourism

Globalization

Consumerism

Technology

Medical Tourism

Types of Medical TourismTypes of Medical Tourism

POTENTIAL U.S. POTENTIAL U.S. MEDICAL TOURISTSMEDICAL TOURISTS

PMT Sample PMT Sample DemographicsDemographics Avg. Age: 36.49

(36.7- U.S. Census Est. 2008) Gender: Females 65.47%

(50.7%- U.S. Census Est. 2008) Education: HS- 12.4% / C- 33.9% / G- 18.8%

(HS- 84.5% / C- 27.4% / G- 10.3%- U.S. Census Est. 2008)

Avg. Household Inc. (Gross): $101,815 Mean/$50,000 Median and Mode ($52,175- U.S. Census Est. 2008)

Race/Ethnicity: B- 8.6% / A- 7.8% / W- 39.7% / H- .3% / Other (Pref. Not)- 43.5%(B- 12.3% / A- 4.4% / W- 74.3% / H- 15.1%- U.S. Census Est. 2008)

Marital Status: M- 46.9% / NM- 39%(M- 50.2% / NM- 30.8%- U.S. Census Est. 2008)

Findings: If Medical Findings: If Medical Travel- WhatTravel- What

Findings: ResearchFindings: ResearchInternet was #1 by a wide margin

Expectations of Int’l Expectations of Int’l Healthcare Facilities (Top 8 Healthcare Facilities (Top 8 Answers)Answers) Healthcare facility employees are knowledgeable.

(Assurance) Patients feel safe in their interactions with healthcare

facility employees. (Assurance) Healthcare facilities are accurate in their billing. (Reliability) Healthcare facility employees get adequate support from

their employers to do their jobs well. (Assurance) Healthcare facility employees tell patients exactly when

services will be performed. (Responsiveness) Healthcare facilities provide their services at the time they

promise to do so. (Reliability) Healthcare facilities in other countries have up-to-date

equipment. (Tangibles) Healthcare facilities have their patients' best interests at

heart. (Empathy)

Medical Tourism as Wish Medical Tourism as Wish Fulfillment?Fulfillment?The use of medical tourism services

will allow me to achieve more:◦ Freedom to act ◦ Knowledge ◦ Pleasurable life◦ Comfort in my life◦ Stimulating and adventurous life

RESEARCH ON RESEARCH ON EUROPEAN MEDICAL EUROPEAN MEDICAL TOURISMTOURISM

A Study of RomaniaA Study of RomaniaFindings of the study (of Europeans):80% of the foreign tourists have no idea

what Romania can offer themMost were only exposed to negative news

about the country. Conclusions:

◦ They needed to find an element to differentiate Romania’s brand from other countries or

◦ They must invent one.

Gallup/Eurobarometer Study of Gallup/Eurobarometer Study of European Cross Border Care European Cross Border Care (2007)(2007)4% of Europeans received medical

treatment in another EU Member State over the past 12 months

Slightly more than half of EU citizens are open to travel to another EU country to seek medical treatment (54%)

The most prominent reason to do so is a hypothesized unavailability of the necessary treatment in the domestic healthcare system

Gallup/Eurobarometer Study of Gallup/Eurobarometer Study of European Cross Border Care European Cross Border Care (2007)(2007)Motivating Factors:

◦ Europeans hope to receive a treatment of better quality (generally, or through a specialist residing elsewhere in Europe)

◦ The promise of quicker access to the necessary treatment

Different perspectives:◦ Quality is the major drive for health

tourism to Western Europe◦ Lower prices are a major argument to

travel for treatment to Central and South Eastern Europe

EU Society for Human EU Society for Human Reproduction and Embryology Reproduction and Embryology Studies (1)Studies (1) An online survey of over 300

patients last year found that 76% would consider going abroad

The vast majority of those who went (88%) were happy with their treatment

CYPRUS AND THE CYPRUS AND THE MEDICAL TOURISM MEDICAL TOURISM CONTINUUMCONTINUUM

Cyprus’ Strengths & Cyprus’ Strengths & WeaknessesWeaknessesStrengthsClose proximity to over 110 million European

Baby Boomers Increasing perception of qualityLow cost infrastructure (personnel, legal, etc.)Beautiful tourism destinationWeaknessesHistory of turmoil/political issuesKnown more for recreational tourismLack of a Medical School or specialized

institutions focused on health tourism or engaged in health tourism

Offer a Continuum of Offer a Continuum of ServicesServices

Marketing Marketing RecommendationsRecommendationsCreate and Market a Medical Tourism Brand and

Brand Image◦ Use a Brand Personality framework (Aaker 1997)◦ 5 Dimensions• Sincerity, Excitement, Competence, Sophistication, and

Ruggedness

Manage Customer Expectations◦ Avoid service quality gaps, i.e., difference between

perceptions and expectations of service quality

Associate the Provision of Medical Tourism Services with Personal Values◦ Being a medical tourist is more than just a trip abroad

for healthcare; for some it is a 'journey' or a 'wish fulfillment' effort 

QuestionsQuestionsThank you!

Contact Dr. David Vequist, Founder and Director of CMTR at vequist@uiwtx.edu

Contact Dr. Michael Guiry at guiry@uiwtx.edu

EU Society for Human EU Society for Human Reproduction and Embryology Reproduction and Embryology Studies (2)Studies (2)Another study was carried out in six

countries during the course of one month – ◦ Belgium, the Czech Republic, Denmark,

Slovenia, Spain and Switzerland (1,230 patients) Greatest numbers were: Italy (31.8%), Germany

(14.4%), the Netherlands (12.1%) and France (8.7%)

◦ Most traveled to bypass legal restrictions 34% of those from the UK said they went abroad

because of difficulties of access to treatment. The average age was over 37 but 63.5% of the

British patients were over 40

Medical Tourism Country Medical Tourism Country Investments (Potential)Investments (Potential)

Investments in High Tech and Commercial Research (e.g., Pharma, Energy, etc.)

ROI

Higher

Lower

Investments in HC & Medical/Retirement Tourism

Investments in Technology Manufacturing/ High-end Consumer/Commercial Products

Investments in Service Outsourcing

Investments in Basic Tourism Activities

Intensity of the

Regulatory Changes Required

Higher

Lower

Intensity of the Current Competitive Environment

Higher

Lower

Investments in Low-end Consumer/Commercial

Products

Estimates based on the CMTR

Cyprus: ROI and Cyprus: ROI and InvestmentsInvestments

ROI described:◦ Job growth (great jobs too!)◦ Brings opportunities for new direct (and

indirect) revenue streams◦ Fills a community need

Ask yourselves, based on the economic and environmental factors- “Will there be a time in the next 20-30 years when great healthcare will not be in demand?”

RecommendationsRecommendationsAll-

◦ Prepare to create and market a medical tourism brand!

Government- ◦ Create a good business environment!

Tax incentives, tax holidays, prioritize infrastructure and regulatory improvements

Education-◦ Get universities involved!

Private Industry-◦ Prioritize investments in this area and invest!

Healthcare facilities and particularly retirement tourism-aligned developments

Don’t Believe Me?Don’t Believe Me?IFC is:•the private sector arm of the World Bank•invests in private sector projects in developing countries•world’s largest multilateral investor in the private health sector