Tourism Malaysia to cut offices abroad

J ANUARY 19, 2013

NEW DELHI, Jan 19 Tourism Malaysia plans to cut the number of its offices aboard to reduce operating costs. Its director for the International Marketing Division (South Asia/West Asia/Africa), Zulkifly Md Said, said there were at present 44 offices globally, of which 38 are full-fledged agencies with staff from the headquarters in Malaysia. Malaysia has the highest number of tourism offices (globally). Hence, the Public Service Department has asked us to look into the matter, he added. The plan is to reduce the numbers as well as turn some of the full-fledged offices to just a marketing agency, he told Bernama at the South Asia Travel and Tourism Exchange (SATTE) Exhibition, which ended here yesterday. It is understood that the offices that might face closure are Stockholm in Sweden, Vancouver (Canada), Phuket (Thailand) and Milan in Italy. We are also looking at appointing general sales agents (GSA) to operate in some of the markets. For example, in the eastern part of India, said Zulkifly. Among others, a GSA office in Calcutta is currently being worked out. Appointing GSAs would help reduce both operating and promotional costs, as it would be on shared basis. We will provide the support that is needed. They have to be committed and ensure the partnership works and targets are met, said Zulkifly. Malaysia is one the most popular tourist destinations in Southeast Asia. The tourism sector contributes almost 12 per cent to the countrys Gross Domestic Product. Malaysia aims to attract 26.8 million tourists during the Visit Malaysia Year 2013-2014. Bernama

Medical tourism hub OSK Research remains optimistic about the medical tourism industry in Malaysia and believes the industry will remain robust and resilient despite the slowdown. For one thing, the majority of medical tourists to Malaysia seek curative medical treatment instead of procedures for aesthetic purposes. Therefore, such patients will seek treatment regardless of whether there is a recession or not, whereas those considering treatment for aesthetic reasons may defer their decision, OSK says. Given that Indonesia accounts for the biggest number of medical tourists to Singapore and Malaysia, the economic slowdown might result in some of Indonesian patients seeking treatment in Malaysia instead of Singapore, due to the cheaper costs, it notes. OSK says Malaysia also has the potential to steal market share from Thailand as the political turmoil in Thailand has resulted in a significant drop in the numbers of general and medical tourist arrivals.

Malaysian medical tourism growing

By ELAINE ANG

IN addition to being a tourist destination known for its cultural, historical and natural attractions, Malaysia is starting to make its mark as an affordable yet sophisticated healthcare hub in Asia. Joining the ranks of their counterparts in Singapore and Thailand, many local private hospitals now have counters, staff, medical packages and special arrangements (such as accommodation and travel) to cater to foreign patients. The efforts seem to have paid off as the number of foreigners visiting the country for medical tourism has more than tripled since 2003 to hit a total of 341,288 in 2007.
Datuk Dr Chan Kok Ewe

Medical tourism receipts have quadrupled to RM253.84mil during the same period. For the first nine months of 2008, over 282,000 foreigners came to Malaysia for medical treatment, generating a revenue of about RM222.25mil a 16% increase from the year before. According to the 2007 figures, about 72% of the foreign patients were from Indonesia, 10% from Singapore, 5% from Japan, 3% from Europe and 3% from India. Penang, Malacca and Johor Baru are the favourite destinations. Currently, 35 private hospitals are earmarked to participate in the promotion of medical tourism in the country.

Slower growth Association of Private Hospitals of Malaysia (APHM) board member and chairman of the committee on database and medical tourism, Datuk Dr K. Kulaveerasingam, is projecting a 15% increase (compared with the past average of 20%-25%) in medical tourism receipts this year as fewer foreigners are expected to visit the country for medical treatment. Due to the economic slowdown, some medical tourists may postpone treatments which are not serious such as cosmetic surgery and even hip and knee surgeries, he says. Island Hospital Penang director and Penang Health Association chairman Datuk Dr Chan Kok Ewe expects flat growth for medical tourism for the group this year due to the slowdown and relative market saturation, especially in traditional markets.
Datuk Dr K. Kulaveerasingham

Although we think the outlook is less encouraging, we should use this slack period to prepare for the next growth phase. To do this, we have to cultivate new markets with a structured strategy and guided investments, he says. He stresses that medical tourism has to be developed as a nationally committed project, which consists of decent national budgets rather than what individual private hospitals can afford to spend. We have to think in terms of a national instead of private enterprise, he says. According to Chan, the majority of medical tourists visiting Penang are of Indonesian origin, who select Penang because of its proximity (to north Sumatra), convenience of travel, and ease of cultural and language adaptation. Gross receipts for members of the Penang Health Association totalled RM156.53mil in 2007 and RM166.15mil in 2008. About 15% to 30% of the members patients comprise medical tourists. The association comprises seven private hospitals in the state that jointly promote health tourism. New markets As part of the plan to expand market reach, Kulaveerasingam says Malaysia is targeting new markets such as Vietnam, Cambodia, the Middle East, United States, Europe and Canada. APHM is collaborating with the Tourism Ministry to publish in July the Malaysian edition of a book series called Patients Beyond Borders,written by Josef Woodman, to promote Malaysia as a medical tourism destination globally with special focus on the US. Kulaveerasingam also stresses the importance of branding for the countrys medical tourism industry to provide a better platform to market and promote the product.

We are working on a video on Malaysian healthcare that can be used when we promote Malaysia overseas. We are also coming out with brochures that take a more holistic view of Malaysian healthcare to appeal to medical tourists, he says.

He adds that despite the challenging economic climate, medical tourism still has a pretty positive outlook boosted by new market penetration.

According to Abacus international, Asias medical tourism industry is expected to be worth at least US$4bil by 2012. Research also shows that a medical tourist spends double the amount of normal tourist US$362 compared with US$144 per day. Competition buster Industry players together with government agencies will have to work hard to ensure that Malaysia can compete with the likes of Singapore and Thailand, which have made a name for themselves in the medical tourism industry. Sunway Medical Centre chief operating officer Chng Lin Ling points out that the Health Ministry and Tourism Malaysia will have to team up to promote the image of Malaysia as a tourist hub for leisure, travel and healthcare. It is also important for tour agents to further promote Malaysia in travel and healthcare, she adds. To Sime Darby Healthcare chief executive officer Elaine Cheong Pek Yin, one of the ways for Malaysia to better compete with Singapore and Thailand is to have a central government agency headed by an expert on dynamic medical and healthcare marketing and promotion. This can boost the efforts to brand Malaysian healthcare in a coordinated and systematic manner. Medical travel to Malaysia should be seriously acknowledged as a vital source of tourism revenue for the country. Hence, concerted efforts must be made to ensure that healthcare providers in Malaysia are internationally accredited and that they subscribe to a high level of clinical and service excellence, besides having superior technology and patient-oriented facilities, she says. Sime Darby Healthcare comprises Sime Darby Medical Centre Subang Jaya, Sime Darby Specialist Centre Megah and Sime Darby College of Nursing & Health Sciences.