The socio-political unrest in Bangladesh has impacted the medical tourism inflow from the neighbouring country and if the turbulence persists the total footfall from the country may drop by 10-15 per cent this year, a report has said.
Bangladesh is the leading contributor to medical tourism among neighbouring countries and accounts for 50-60 per cent of India's total medical tourism inflow, says the report released on Wednesday.
Current internal challenges in Bangladesh have impacted the flow of patients as a considerable number of these travellers have either cancelled or postponed their visits, according to a report by knowledge-based analytical group CareEdge Ratings.
According to CareEdge Ratings, if the unrest persists, the footfall is likely to decline by 10-15 per cent from Bangladesh during 2024.
The contribution of medical tourism to the entire Indian hospital sector is about 3 per cent to 5 per cent.
Considering the drop in footfall from Bangladesh along with its gradual revival to normalcy by the end of 2024, the sector will see minimal impact, according to the report.
"The effect on individual hospitals will vary depending on their reliance on Bangladeshi medical tourists. Hospitals with a high dependency on these tourists may experience revenue declines in the second and third quarter of FY25, while larger, multi-location hospitals in India are likely to see a relatively minor impact.
"Most Indian industry players appear to be largely unaffected by the crisis, supported by their strong financial resilience and robust cash accruals," CareEdge Ratings Associate Director D Naveen Kumar added.
In recent years, medical tourism in India has been on a gradual upward trend, driven by the relatively low cost of surgery, high-quality critical care, hospitals with advanced technology, and the expanding 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 subdued due to the ongoing travel restrictions in parts of that year.
However, 2022 marked a significant comeback, with medical tourism nearly returning to pre-Covid levels, and the trend continued in 2023, showing a 33 per cent year-on-year growth.
The government's initiative to extend the e-medical visa facility to nationals from 167 countries is expected to further boost medical tourism in the coming years, said the report.
This particularly benefits the hospitals in metro cities the most as they are prime beneficiaries of international patient flow, said the report adding that nearly 70-80 per cent of medical tourists arriving in India are from Bangladesh and Middle East countries.
India ranks among the top 10 countries for medical tourism globally and is especially preferred amongst South-Asian, African and Middle East countries.
Bangladesh stands out as the leading contributor to medical tourism among neighbouring countries, surpassing the Middle East, Myanmar, Maldives, Sri Lanka, and Pakistan.
However, recent socio-political instability in Bangladesh poses a risk to this flourishing segment of the industry as the current internal challenges have shown signs of affecting the flow of patients.
The hospital sector in India was valued at around Rs 5.8 lakh crore in FY23, with an anticipated annual growth rate of 12 per cent over the next three years. Each year, an estimated 3 to 3.5 lakh individuals from Bangladesh seek medical treatment in India.
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