Socio-political unrest in Bangladesh has hit the flow of medical tourism from the neighbouring country and the total number of tourists arriving from the country may decline by 10-15 per cent this year if the unrest continues, a report said.
The report released on Wednesday said that Bangladesh has the highest contribution in medical tourism among the neighbouring countries and its contribution in total medical tourism of India is 50-60 per cent.
According to a report by knowledge-based analytics group CareEdge Ratings, the current internal challenges in Bangladesh have impacted the flow of patients, as a large number of these travellers have either cancelled or postponed their trips.
According to CareAge Ratings, if the unrest continues, the number of tourists arriving from Bangladesh is likely to decline by 10-15 per cent during 2024.
Medical tourism contributes about 3 percent to 5 percent to the total Indian hospital sector.
According to the report, considering the reduction in the number of people coming from Bangladesh and the situation gradually returning to normal by the end of 2024, there will be minimal impact on the sector.
“The impact on individual hospitals will vary depending on their reliance on Bangladeshi medical tourists. Hospitals with a high reliance on these tourists may experience a decline in revenue in the second and third quarters of FY25, while large, multi-location hospitals in India are likely to have a relatively modest impact.
“Most Indian industry players appear to be unaffected by the crisis as they are backed by strong financial resilience and robust cash accumulation,” said D Naveen Kumar, associate director at CareEdge Ratings.
In recent years, medical tourism in India has gradually increased, owing to the relatively low cost of surgeries, high quality intensive care, hospitals with advanced technology and expansion of e-medical visa facility.
Although 2021 saw some growth in medical tourism following the significant impact of the COVID-19 pandemic the previous year, it remained slow due to ongoing travel restrictions during parts of that year.
However, 2022 saw a significant comeback, with medical tourism almost returning to pre-Covid levels, and this trend continued in 2023, which saw a 33 per cent year-on-year growth.
The government’s initiative to provide e-medical visa facility to citizens of 167 countries is expected to further boost medical tourism in the coming years, the report said.
This will benefit hospitals, especially those in metro cities, the most as they are the major beneficiaries of international patients, the report said, adding that about 70-80 per cent of medical tourists visiting India come from Bangladesh and Middle East countries.
India ranks among the top 10 countries for medical tourism globally and is particularly preferred in South Asian, African and Middle Eastern countries.
Bangladesh is leading in contributing to medical tourism in neighbouring countries, surpassing the Middle East, Myanmar, Maldives, Sri Lanka and Pakistan.
However, the recent socio-political instability in Bangladesh is posing a threat to this thriving sector of the industry, as the existing internal challenges are indicated to impact the flow of patients.
The hospital sector in India was valued at around Rs 5.8 lakh crore in FY23, with an annual growth rate of 12 per cent projected over the next three years. Every year, an estimated 3 to 3.5 lakh people from Bangladesh seek medical treatment in India.
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