Thai hospitals bolster IVF to attract Chinese tourists

They are also offering hotel stays and visa and wellness packages as part of their medical tourism strategy.

Even if China is not the dominant patron of medical tourism in Thailand, analysts expect that hospitals in the Land of Smiles will be smirking and grinning over positive margins as Chinese tourists’ demand for in vitro fertilisation (IVF) markets heightens. The reason? The end of China’s one-child policy is taking a toll on its birth rate.

Waritthorn Kaewmuang, equity research analyst at UOB Kay Hian Securities Thailand, said some of the youth in China might not want to have kids possibly due to low income may contribute to higher dependence on IVF treatments abroad.

China’s population had fallen for the first time in six decades. In 2022, according to government data, there were about 6.77 births per 1,000 people in China, down from 7.52 births in 2021. Kaewmuang said Thailand’s IVF treatment is also attractive to Chinese tourists due to its above-average success rate of 48%.

More doctors [and] better equipment allows Thailand to develop further in various subspecialty area

Another factor why Thailand is attractive for IVF treatment is because it is over 50% cheaper compared to costs in China, Shin Thant Aung, Director at YCP Solidiance Thailand, said. He added that this could be an advantage as IVF is normally not covered by healthcare insurance.

“For example, China’s IVF treatment is around US$10,000. But in Thailand, you’re gonna get it at US$3,000,” said Aung.

China’s policy for IVF treatments is also strict when it comes to gender, which is why some medical tourists go to Thailand to get their fertility treatments, Aung noted. In a news article, it was mentioned that Beijing banned access to IVF for single or unmarried women.

Proximity is also another factor why Thailand is attractive. Thailand is nearer to China compared to other countries that offer IVF treatment. The distance between China and Thailand is 1,391 miles if you travel by plane compared to the distance between the mainland and Turkey, one of the most preferred nations for IVF treatment, at 3,706 miles.

“Between China and Thailand, it is closer compared to Turkey. If you compare the distance, the flight costs, and also the average operation cost, which is around half compared to most of the countries. This is one of the reasons that China seems to benefit,” Kaewmuang said in a recent Healthcare Asia interview.

In 2022, the top source markets in Thailand were Malaysia, India, and Singapore. The Thailand government said it is expecting to receive 30 million tourists this year from its initial projection of 28 million tourists. About seven million to eight million of them are likely to come from China.

Inadequate number of specialty healthcare staff

The challenge for Thailand’s IVF treatment market is its inadequate number of physicians compared to Turkey, Kaewmuang said. To compare, a 2020 World Bank report showed that Thailand had over 0.9 physicians for every 1,000 people, whilst in Turkey, the ratio is 1.9 per 1,000 population.

Kasem Prunratanamala, head of CGS-CIMB’s Thailand research, said there is a need to resolve the low supply of sub-specialty doctors, such as professionals in IVF.

“With more doctors [and] better equipment, it allows Thailand to develop further in various subspecialty areas, which in turn would attract more international patients,” advised Prunratanamala when asked how the market can address sub-specialty doctor shortage.

One way of resolving this is to offer competitive or higher pay for doctors performing surgery for subspecialty areas. “[If the pay is lower], it may force new physicians and new doctors to go to [Turkey] instead of [Thailand],” said Kaewmuang.

Prunratanamala said the Bumrungrad International Hospital and Bangkok Dusit Medical Services (BDMS) are amongst the hospitals that will benefit from the reopening and IVF treatment demand from Chinese medical tourists.

When analysed, Aung said these hospitals have a high-profit margin, with Bumrungrad having a 38% profit margin in 2021 whilst BDMS has over 30% gross profit margin. Bumrungrad, one of the most expensive and popular hospitals, accommodates a lot of Chinese patients. Bumrungrad has a fertility centre that has a team of more than 20 specialists and personnel who can provide counseling for couples with infertility concerns. The costs