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African Medical Tourism on The Rise

Africans, whether wealthy or not are leaving their homes in search of the best healthcare available, or for the care that they desperately need.

According to a recent report,  approximately 650,000 people travelled outbound from Africa for medical tourism in 2015.

This number has been growing rapidly over the past few years, with volumes of travellers estimated to be increasing at 31 percent annually since 2012. And this double-digit growth is set to continue, with the number of outbound medical tourists from China expected to surpass 800,000 in 2020, according to analysts.

These medical travellers spent US$2.2 billion on treatment in 2015, and a further US$1.6 billion on related travel and accommodation, making outbound African medical tourism a USD3.8 billion business.

This market is being driven both by major changes in Africa’s demographic make-up, and in its people’s ability and willingness to spend.

Who is Leaving Africa for Care?

With average hospital costs paid by African medical tourists ranging from US$1,500 for dental procedures, right up to US$146,000 for oncology treatment, and major destinations ranging from as near as Dubai to as far as the U.S., it is clear that even though it is in the early stages of development, the African outbound market is already multi-faceted and growing at a fast pace.

African Medical Tourism on The Rise

New research looks at the African market in terms of two key dimensions: treatment type (essential vs. elective) and willingness to spend (want to spend vs. have to spend).

Those who need treatment overseas have serious conditions, such as certain cancers, that cannot be treated in Africa due to lack of approved drugs, insufficient surgeons with the necessary skills, or lack of technologies.

Those who want treatment overseas may have life-threatening problems such as a serious cardiac condition, or they may just have decided they are tired of wearing reading glasses and want intra-ocular lens implants. They want the best available. Or perhaps they just feel like combining their treatment with a holiday.

Three key segments emerge:

  1. Affluent elective – happy to pay for a treatment they want
  2. Affluent essential – happy to pay for the treatment they need
  3. Middle-class essential – find a way to pay for a treatment

Health Tourism AfricaIt is estimated that by 2020, out of Africa’s 250 million urban households, 134 million will be defined as Middle Class or above. Almost half of those numbers will be considered Affluent – this means that there will be over 400 million people potentially able to spend on medical tourism for essential treatments, of which 195 million will be potentially in the market for elective treatment overseas.

On the other end of the spectrum, there are those who don’t have sufficient savings to pay for medical travel, but desperately need treatment that is either not available in Africa, or considered too risky to undertake there.

Where are the Africans going?

When a African medical tourist is planning their trip overseas, they usually manage everything for themselves from start to finish. The majority of these tourists select other Asian destinations. Out of the 475,000 patients that left Africa for care in 2015, less than 2 percent left Asia. The patients that did decide to venture further away mainly went to the U.S. for treatments such as cardiac surgery, cancer programs or surrogacy.

Dubai is fast emerging as a destination for super-rich Africans to try out anti-ageing stem cell therapy. And at US$50,000 to US$100,000 per treatment, it really is only for the super-rich.

At the other end of the price range, simple cosmetic procedures such as blepharoplasty and breast implants, as well as dental treatments, have African patients flocking to nearby Thailand, Malaysia, India and Dubai.

  • 175,000 patients from Africa, spent over US$1 billion on hospital fees, travel and accommodation in India in 2015
  • 150,000 went to Thailand in 2015
  • 53,000 went to Malaysia in 2015

Dubai saw approximately 25,000 visits – including those choosing the city over Singapore or the U.S. for treatment of more serious conditions – takes the East Asian total to 409,000, or 85 percent of all outbound medical tourism from Africa.

African patientsMost of the remaining 15 percent headed to Singappore and Hong Kong, which attracted 58,000 between them for wellness, health checks, and important but less life-threatening treatment. Singapore, favoured for its super-high quality of treatment, rigorous efficiency, played host to about 9,000 African patients in 2015.

An estimated 3,000 patients visited the U.S., and a similar number went to Europe, mainly to Switzerland, the UK and Germany. Most of these were affluent patients who chose to travel so far because they could easily afford it, and wanted what they considered the best possible treatment.

As an interesting aside, of the high net worth individuals (HNWIs) who emigrate from Africa, 10% state the destination country’s medical system as the top reason for relocating, making it one of the top five drivers alongside education, environment, food safety and social welfare. Top ranked countries for the efficiency of their medical system are Singapore, Korea, Australia and Canada.

Untapped potential in African Markets

While any US$10 billion market is worthy of note, that represents less than 1.8 percent of the total US$551 billion spent globally on medical tourism in 2015 (source: Stanford Research Institute).

Africa is home to nearly 15 per cent of the world population, suggesting theoretical untapped potential more than ten times the size of the current market.

Even if only a fraction of this potential is realized in the next few years there is clearly huge scope for further development.

The advent of significant numbers of African medical tourists hitting the market in the past few years already represents an industry-changing trend.

 

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