The challenge for medical tourism industry

The recent European Congress on health tourism in Budapest reflected some of the current problems and challenges that medical tourism industry, particularly those made by a global recession. Budapest is dental tourism hub of Europe, attracting patients from countries like the United Kingdom, Ireland, Germany, Austria, Switzerland and Scandinavia. If the recession is hitting medical tourism, then Budapest will feel more than most.

There were workshops and presentations from various providers and industry players in Congress of Budapest. One of the most realistic of these presentations was done by Dr Bela Batorfi of The Batorfi implant Dental Clinic in Budapest. This clinic impressive typically performs approximately 1800 dental implants per year. But with the onset of the global financial crisis which saw some worrying trends:

The number of patients abroad fell about 30%. Medical Tourists are more difficult to find! The average spend per patient has decreased from around 5000 € for £ 2600. Medical Tourists are spending less per visit. The average age of the patients has increased. Medical Tourists are delaying treatment.

The experience of Batorfi implant Dental Clinic is reflected among many of the other providers of dental treatment in Budapest. Isn't it the case that Budapest is losing patients and market share to other destinations. Understandably, many clinics are worried about falling off in business and how long it will continue.

In the context of financial crisis, Hungary is one of many countries planning a "Medical City" to attract patients from around the world for a medical centre of excellence. According to Balázs Stumpf-Biró, Executive Director of European medical tourism Alliance (EuMTA), Hungary is planning to create 100 acres of land near the international airport of Budapest as a health complex, similar to Dubai healthcare city.

If this development suffers the same fate Dubai healthcare city remains to be seen. The initial building boom in Dubai has come to a grinding halt. Build anything in the current financial environment is a risky business, and with the market for medical travel to Hungary down about 20% to 30%, he'll be a courageous investor that defines the first brick.

Various estimates of numbers of medical travel to Hungary put the number of incoming tourists doctor around 300000 for 350 k per year. Most of these are for dental treatment and many can be "short trip/low-cost" cross border visitors from Germany and Austria. But this is still a valuable market.

What, then, long-term prospects for medical tourism destinations like Hungary? Better than most, I would suggest. The market for travel medicine is here to stay and are here for the long term. Hungary has been at the forefront of medical travel in Europe in the last decade and he can maintain this situation.

But like most countries, being encouraged below the route medical tourism must tread with caution. Hear the usual exaggerated statements by proponents of industry, such as the medical tourism association that "the greatest market potential for Hungary is the United States". I can just see hundreds of thousands of Americans leave their maps of Europe, location of Budapest and booking flights long-distance through New York/London/Amsterdam for their dental implants. It will not happen.

So where Hungary focus?

Well ...:

There is a population of 550 million in "of the United States of Europe" that can begin to exploit the opportunities under the EU directive on patient mobility. Not so far away from Hungary, there are 140 millions of Russians who are beginning to spend their money on holidays throughout Europe. Medical travel will follow this trend. And the UK dental problem is here to stay. See this recent article in the independent: It can hurt a bit: Rise in hospital admissions for last-ditch tooth extractions

My advice for Hungary ... The same as you would get business guru Tom Peters (In Search of Excellence).

Stick to the knitting-stay with the business you know!