Professional Documents
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Tourism Management: Eugene Yeoh, Khalifah Othman, Halim Ahmad
Tourism Management: Eugene Yeoh, Khalifah Othman, Halim Ahmad
Tourism Management
journal homepage: www.elsevier.com/locate/tourman
h i g h l i g h t s
a r t i c l e i n f o a b s t r a c t
Article history: The medical tourism industry in Malaysia has grown drastically over the past ten years. This research
Received 16 April 2012 seeks to determine the demographics of the medical tourists that are visiting Malaysia for various
Accepted 28 April 2012 medical treatments. A nationwide questionnaire survey was carried out amongst outpatient medical
tourists from medical tourism certified hospitals. The results indicated that majority of the tourists were
Keywords: repeat tourists from Indonesia and most of these outpatient patients spend about seven days in Malaysia
Medical tourism
with at least one companion. The results also revealed that most of the tourists were influenced by
Healthcare strategy
friends, family, relatives and doctor’s referral.
Demographics
Malaysia
Ó 2012 Elsevier Ltd. All rights reserved.
0261-5177/$ e see front matter Ó 2012 Elsevier Ltd. All rights reserved.
doi:10.1016/j.tourman.2012.04.010
E. Yeoh et al. / Tourism Management 34 (2013) 196e201 197
advantages between the exporter country and the consumer. Apart the 1997 Financial Crisis triggered many Malaysian private hospi-
from cost savings, there are also other reasons for the migration e tals to target foreign patients aggressively in order to make up for
long waiting period, uninsured procedures, uninsured patients, the decline. Since then, the number of medical tourists has
better quality of care, unavailability of certain procedures (due to increased drastically as shown in Table 1.
ethical reasons), and specialised skills (due to home demand) While the data from Association of Private Hospital of Malaysia
(Carabello, 2008; Connell, 2006; Ehrbeck, Guevara, & Mango, 2008; (APHM) indicate that the numbers of medical tourists are
Forgione & Smith, 2007; Freire, 2012; Gerst, 2008; Hancock, 2006; increasing rapidly, the resources required to promote the industry
Hopkins, Labonté, Runnels, & Packer, 2010; Horowitz & Rosensweig, is limited as the promotion avenues are unlimited. As such, the
2007; Marlowe & Sullivan, 2007; Milstein & Smith, 2006; Moody, objective of this paper is to identify the demographics of the
2008; More Americans Uninsured, 2007; Record Number of Britons medical patients that are seeking medical treatments in Malaysia
Heading Abroad, 2007; York, 2008). and to identify the sources where patients are obtaining informa-
tion about the medical facilities in Malaysia.
2. Literature review
3. Word-of-mouth communication
Up until 1997, prior to the Asian Financial Crisis, Asia was the
main location of choice for most foreign capital investment, The terminology word-of-mouth (WOM) communication has
particularly in South East Asia. As a direct result significant sums of come a long way and there are many different definitions and
money poured into these countries, creating a seemingly unending frameworks that have been proposed by many. Different words have
economic bubble more commonly known as the Asian Economic been used to describe the verb, such as diffusion, transmission,
Miracle. The tremendous economic growth in these countries was communication, and dissemination of thoughts, information,
also well received and highly praised by the International Monetary messages, opinions, evaluations, and comments between at least
Fund (IMF) and World Bank. Such investments were first seen in two persons about some products, services, brands, and related
the First Wave, i.e. direct investment from the Japanese in the mid experiences (Dichter, 1966; Gajendra, Ye, Sun, & Li, 2012; Gupta &
1980’s until the early 1990’s, which totalled about US$48 billion in Harris, 2010; Ha & Im, 2012; Shoham, Gavish, & Segev, 2012;
1996. The main beneficiaries of these foreign direct investments Soares, Pinho, & Nobre, 2012; Sweeney, Soutar, & Mazzarol, 2012).
(FDI) were ASEAN countries such as Singapore, Malaysia, Thailand Xu (2007) argued that individuals who are involved in such
and the Philippines. After that, came the Second Wave, which was form of communications may have direct impact on an organisa-
chiefly driven by the financial technocrats from major international tion and four types of WOM publicity were proposed; consumer to
financial houses (Bello, 1997; UNU World Industry for Development consumer which refers to communication amongst close circle,
Economies Research, 1999; Woo, 2000). business to consumer where employers encourages employees to
The annual growth in GDP for most of these Asian countries talk about the company products or services, business to business,
before 1997 was hovering around 5e12 per cent (UNU World and facilitated business to business which produces information
Industry for Development Economies Research, 1999). At the end sharing in industrial purchase.
of 1997 the GDP of South East Asia recorded a 4 per cent growth. By But generally, the verb can be referred to as an informal (Ha &
1998 the economy in South East Asia contracted by 6.9 per cent and Im, 2012; Soares et al., 2012) and personal (Arndt, 1967) form of
about US$30 billion of capital from Indonesia, Malaysia, the communication. On top of that, WOM can either be positive or
Philippines and Thailand was sacrificed to the financial crisis negative (Anderson, 1998; Richins, 1983). East, Hammond, and
(Kumar, 1999). The non-performing loans (NPL) in Asia have risen to Wright (2007) argued that there are more positive WOM rather
US$2 trillion in November 2000, which is equivalent to 30 per cent of than negative whereas, Bailey (2004) argued that negative infor-
the region’s GDP. By 2001 the NPL was estimated at around 17 per mation significantly influences attitude.
cent of the combined GDP e Malaysia’s NPL stood at US$43 billion WOM has been given such great emphasis in recent years due to
which was about 35 per cent of the GDP and Thailand’s NPL value a number of reasons such as the impact of WOM on marketing
was US$50 billion representing 41 per cent of the GDP (UNDP, 2002). strategy (Smith, Coyle, Lightfoot, & Schott, 2007), effect on purchase
Like any other industries the healthcare sector was not spared decision by customers (Gajendra et al., 2012; Michelle, 2006; Soares
from the 1997 Asian Financial Crisis. Many private-paying patients et al., 2012), source of trusted information source (Allsop, Bassett, &
had to switch back to the public healthcare system as many busi- Hoskins, 2007; Soares et al., 2012), and immediate feedback (Valck,
nesses were closed down or downsized or experienced drastic Bruggen, & Wierenga, 2009). Due to these benefits and also during
cutbacks on healthcare benefits. The public hospitals in Malaysia such hard times, businesses are now more akin to invest in WOM
saw an increase in patients, at least between 10 and 18 per cent, and marketing as it helps to reduce the advertising and promotional
the private healthcare facilities, both hospitals and general practi- spending and is considered a more powerful marketing tool that
tioner clinics, on the other hand saw a dramatic decrease of produces better results (Sweeney et al., 2012).
between 10% and 30% (UNFPA, 1998).
The drastic and speedy devaluation of Thai baht in July 1997 also Table 1
affected a number of other Asian currencies including Malaysian Malaysian medical tourism revenue.
Ringgit. Market speculation further aggravated the problem and Foreign patients Revenue (MYR)
caused the Ringgit to fluctuate further posting serious problems in 1998 39,000 14,100,000
business transactions especially in exports and imports, including 1999 59,926 22,400,000
essential imports such as pharmaceuticals, medical supplies and 2000 56,133 32,637,030
medical equipment. The import of pharmaceuticals alone made up 2001 76,210 44,281,751
2002 84,585 35,579,051
about 60 per cent of the drugs in the whole country. New, hi-tech,
2003 102,946 58,900,000
and expensive institutions were affected the most (UNFPA, 1998). 2004 174,189 104,980,000
This compounded problem affected many of the private hospi- 2005 232,161 150,920,000
tals, as the locals were moving back to public healthcare, causing 2006 296,687 203,660,000
many private hospitals to issue “code blue” signals due to low 2007 341,288 253,840,000
utilisation rates in the clinics, wards, and other facilities. As a result, Source: Cruez, 2008; EUMCI Review, 2007; MOH, 2002.
198 E. Yeoh et al. / Tourism Management 34 (2013) 196e201
The virtual world has created new terminologies related to WOM Table 2
marketing such as viral marketing, word-of-mouse, and click-of- Summary responses to the questionnaire survey.
mouse. The actual definitions of these terminologies are still being Responses Frequency Percentage
debated. Further distinction is being made on general online and Valid 470 89.69
social media environments. Due to the vague definitions (Mills, 2012) Invalid
argued that if the term is used specifically for the social medial Residing in Malaysia for 39 7.44
more than 1 year, for work,
environment then four key factors e spreadability, propagativity,
MM2H programme, or for
integration, and nexus e should be incorporated into the definition. education purposes
Yang (2011) argued that since patients are more proactive these Below 18 years old 7 1.34
days, the main source of information will definitely have to come Malaysian citizens 7 1.34
from personal experience, WOM, and advertisement from organi- Incomplete responses 1 .19
Total 524 100.00
sations. However, Campbell (2012) argued that organisations with
a lot of positive WOM will have better short- and long-term profits
Table 3
thus, creating sustainable and better growth rate. In such cases, the
Demographic by nationality, gender, and age.
sales force team may become optional.
In the context of medical tourism, Lee, Han, and Lockyer (2012) Demographic variable Frequency Percentage
in their research, amongst Japanese medical tourists, found that Nationality (n ¼ 439)
positive WOM was important to ensure the survival of the South Indonesia 317 72.21
Singapore 101 23.01
Korean healthcare providers as this helps providers to create better
Others 21 4.78
marketing strategy. Ko and Kim (2011) also concurred with the fact Gender (n ¼ 424)
that providers should take all measures to ensure that negative Male 186 43.87
WOM be minimised to ensure re-patronage in the hospitals. Female 238 56.13
Age (n ¼ 441)
Srivastava and Mahajan (2011), on the other hand, concluded that
18e30 75 17.00
WOM marketing may be considered as the best advertising tool 31e45 184 41.72
that dental setups could take advantage off. 46e60 153 34.69
Considering the importance of WOM marketing in the medical >60 29 6.58
industry, understanding the demographics and sources amongst
the medical tourists that are visiting Malaysia is vital. This is to Resident holders, respondents who are residing in Malaysia due to
ensure that the right message is formulated and the source(s) used work, study, or Malaysian My Second Home (MM2H) programme,
in transmitting the message(s) is/are effective. These are some of and respondents who are below 18 years of age.
the ways to ensure the survival and sustainability of the industry. The respondents consisted of medical tourists from 19 coun-
tries; the largest was from Indonesia with 72.2%, followed by
4. Method Singapore with 23.0%, and other (which comprised of Japan, China,
Vietnam, Cambodia, Korea, US, Africa, Sweden, Canada, Thailand,
Cluster sampling was employed and each of the medical tourism Australia, France and Germany) with 4.8%. There were 43.9% male
certified hospitals was considered as a cluster. Invitation letters were respondents and 56.1% female respondents who responded to the
sent to all the clusters e 35 medical tourism certified hospitals. survey. The largest age group was between 31 and 45 with 41.7%,
However, only seven clusters responded to participate in this research. followed by age group between 46 and 60 with 34.7%, and followed
Over 2000 questionnaires were circulated amongst these clusters. The by age group between 18 and 30 with 17.0%. The average age was
questionnaires were left with the Marketing or Customer Service
Department. These heads of department were then responsible to Table 4
Breakdown of medical procedures.
circulate the questionnaire to the respective clinics. Each cluster was
enrolled at different time due to the late response to the invitation and Demographic variable Frequency Percentage
was given a period of two months to complete the survey. The whole Medical Procedure (n ¼ 470)
duration of the survey was about four months in total. Blood (Haematology) 62 6.8
Bone (Orthopaedic) 81 8.9
Out of 2000 questionnaires only 524 questionnaires were
Cancer (Oncology) 55 6.0
returned. There were five inclusion criteria; they were 18 years of age Child (Paediatrics) 41 4.5
or older, fluent in English and/or Bahasa Indonesia, non-Malaysian Diabetes/Thyroid (Endocrinology) 26 2.8
who were receiving outpatient medical attention from one of the Ear-Nose-Throat (Otolaryngology) 36 3.9
medical tourism certified hospitals, visited Malaysia for medical Eye (Ophthalmology) 75 8.2
Female related (Obstetrics and Gynaecology) 45 4.9
purposes with or without tourism activities, and participated in this
Fertility 21 2.3
survey for the first time. On the other hand, the exclusion criteria Heart (Cardiology) 68 7.4
included residence in any parts of Malaysia for more than 12 months Kidney (Renal) 56 6.1
(unless for certain unforeseen medical circumstances), foreign Liver (Hepatobiliary) 60 6.6
students who were pursing their studies in Malaysia, expatriates or Nerves (Neurology) 44 4.8
Screening e Health and Medical 56 6.1
diplomats based in Malaysia for some form of work related duties, Skin (Dermatology) 45 4.9
not directly associated with the medical personnel, and not part of Stomach related (Gastroenterology) 33 3.6
any charity missions or sponsored patients by the hospitals. Surgery 63 6.9
Urinary related (Urology) 16 1.7
Cosmetic 12 1.3
5. Results
Dental 14 1.5
Others 6 .7
Table 2 represents the overall responses to the questionnaire Number of procedures sought
survey where 54 respondents were rejected because of various Blank 25 5.32
reasons such as currently residing in Malaysia for more than 1 year, 1 310 65.96
2 67 14.26
respondents who are Malaysian citizens or Malaysian Permanent >2 68 14.46
E. Yeoh et al. / Tourism Management 34 (2013) 196e201 199
Table 5 Table 7
Medical tourists pattern. Characteristics of a medical tourist.
are orthopaedic (8.9%), ophthalmology (8.2%), and cardiology 31 and 45 years old and are here on their own. However, over 70% of
(7.4%). At the moment Malaysia only has specialised hospitals for the medical tourists are here with at least one guest. Further to that
two of the medical treatments e Tun Hussein Onn Eye Hospital for the research also revealed that most of the tourists and guests
ophthalmology cases and Institut Jantung Negara for cardiology would stay for 7 days (22.2%). Such information is extremely useful
cases. Setting up an orthopaedic national centre may be a good for the travel and hospitality industry. Thus, driving the private
approach to train more orthopaedic specialists and expose them to sector to develop more products and services to cater for the needs
more high tech procedures such as Birmingham hip replacement, of these tourists; be it psychocentric or allocentric tourists. These
and cartilage knee transplant, and computer-assisted total joint data is also useful for the government do other planning; be it
replacement. This will also be beneficial to all Malaysians. short-, mid-, or long-term planning.
These specialised hospitals may consider becoming clinical While this research has revealed more information about the
trial centres in medical and biomedical researches considering demographics of medical tourists and also the sources used, this is
that the make up of the population in Malaysia comprises of most not indicative that the hospital management team should neglect
major Asian people groups. Also, these hospitals can conduct other forms of communication mix such as advertising (above- and
a number of large scale time-series studies (cohort and/or cross- below-the line) and trade shows. This research merely suggests
sectional) that may rival other international landmark studies that WOM communication may have better impact on the type of
such as the United Kingdom Prospective Diabetes Study and Dia- medical tourists that are coming to Malaysia. In fact, the private
betes Control and Complication Trial. hospital management may consider taking advantage of the
Other important statistics include the age group, number of relaxed regulations by the Lembaga Iklan Ubat (Medical Advertising
guest(s) accompanying the medical tourist, and length of stay in Board) permitting hospitals to advertise. This may be a good
Malaysia. Majority of these medical tourists are between the ages of strategy to penetrate other untapped markets.
Appendix A
SECTION B: DEMOGRAPHICS
1. Your nationality
3. What medical procedure are you seeking from this hospital in this trip? (please check the
relevant boxes)
Blood Bone Cancer Child related
Diabetes / Thyroid Ear-Nose -Throat Eye Female related
Fertility Heart Kidney Liver
Nerves Screening Skin Stomach related
Surgery Urinary related Cosmetic surgery Dental
Others (specify)
4. Is this your first time seeking medical treatment out of your home country? ( ) Yes ( ) No
5. If no, how many times have you sought medical treatment in Malaysia in the past three years
(please check only one)
( ) 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5 ( ) 6 ( ) 7 ( ) 8 ( ) 9 ( ) 10 ( ) more than 10
6. Besides Malaysia and your home country which other countries have you gone to seek medical
treatment? ____________________________________
7. How did you hear about the medical services in this hospital? (please check the related boxes)
Family / Relatives Friends Doctor referral Agents
Website Magazine Exhibition Media
Others (specify)
10. How long will you be staying in Malaysia ______________________days / weeks / months
14. What is your total annual household income bracket? (please check only one)
Less than RM25,000 RM25,000 – RM50,000 RM50,001– RM75,000
RM75,001– RM100,000 More than RM100,000
E. Yeoh et al. / Tourism Management 34 (2013) 196e201 201