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Tourism

Malaysia's Healthcare Tourism Industry Faces Challenges Amid COVID-19

Strategic Insights

— 2 min read

Malaysia's healthcare tourism industry has been significantly impacted by the COVID-19 pandemic, with travel restrictions and slump in demand affecting the sector's growth. According to Mohd Daud Mohd Arif, CEO of Malaysia Healthcare Travel Council (MHTC), the industry relies heavily on international travellers and concerted efforts from both public and private healthcare players are crucial for its recovery. MHTC aims to build confidence in Malaysia as a safe and trusted healthcare travel destination, particularly in key markets such as Indonesia and China.

Key Takeaways:

  • Malaysia's healthcare tourism sector is expected to generate RM7 billion (US$1.67 billion) to the economy by 2025 through healthcare travellers spending on medical, tourism, transportation, hotels, food and beverages, and other services.
  • MHTC will focus on building confidence in Malaysia as a safe and trusted healthcare travel destination, particularly in target markets such as Indonesia and China.
  • The industry needs to adapt to the new reality with concerted efforts from both public and private healthcare players.
  • Cross collaboration with tourism stakeholders and industry networks abroad is crucial for accelerating the industry's recovery and Malaysia's healthcare landscape.
  • MHTC will launch the Malaysia Healthcare Travel Industry Blueprint 2021-2025 next month to guide the industry forward and involve all stakeholders across the journey.
  • The blueprint aims to provide a holistic approach to drive the industry's recovery and realization of the objective by 2025.
  • Reviving the hotel industry is crucial for the survival of the sector, and reopening domestic tourism destinations is essential to ensure its revival.
  • At least 120 hotels have ceased operations either temporarily or permanently due to COVID-19, while those that are still in operation have been reducing or laying off their staff to survive.
  • Employing a domestic travel bubble has its advantages in implementing standard SOPs and controlling tourist traffic, which can aid in the recovery of the hotel sector.

Statistics:

  • Estimated revenue generated by Malaysia's healthcare tourism sector by 2025: RM7 billion (US$1.67 billion)
  • Number of medical tourists who visited Malaysia in 2019: 1.22 million
  • Revenue generated by medical tourists in 2019: RM1.7 billion (US$406.3 million)
  • Percentage of total spending of a medical tourist used for non-medical expenditure: 74%
  • Number of countries expected to participate in the insigHT2021 conference: over 30 countries
  • Number of participants expected to attend the insigHT2021 conference: around 800
  • Number of speakers expected to present at the insigHT2021 conference: over 40
  • Percentage of hotel operators who have ceased operations due to COVID-19: at least 120 hotels

Sources:

  • NAM NEWS NETWORK (2021, September 27)
  • Bernama
  • Malaysia Healthcare Travel Council (MHTC)
  • Universiti Teknologi MARA (UiTM)
  • Malaysian Association of Hotels (MAH)
  • World Health Organisation (WHO)
  • Mayo Clinic
  • Tourism Authority of Thailand (TAT)

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