Medical Tourism Services
Medical Tourism Services
Business Model Description
Establish and operate private hospitals or clinics providing high-quality healthcare services to Mauritius' population and to patients from Sub-Saharan Africa with limited access to specialized treatment in their home countries. Leverage on the cascading effect that medical tourism will bring to other sectors and the region with positive spillovers through treatment in cardiology, eye treatment, oncology and geriatrics.
Expected Impact
Provide quality healthcare services to underserved patients from the region with positive spillover effects for local patients.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Mauritius: Countrywide
- Mauritius: Flacq
- Mauritius: Moka
- Mauritius: Plaines Wilhems
- Mauritius: Rivière Noire
Sector Classification
Health Care
Development need
Prevalence of noncommunicable diseases (NCDs), aging population with increasing needs and ensuring well-being of non-nationals living, working or visiting Mauritius urge improvements in country's well-developed healthcare system. Cost and supply chain vulnerabilities arise from dependency on medical equipment and pharmaceutical imports and specific treatments abroad (1, 2).
Policy priority
Mauritius aims to sustain provision of free healthcare services to an aging population with higher specialized treatment needs and quality expectations, through Five-Year Health Sector Strategic Plan 2020-2024 (3). Government agenda foresees positioning Mauritius as a medical hub, improving the independence of the sector and enhancing local production to serve wider Africa market.
Gender inequalities and marginalization issues
Serving Rodrigues and Agaléga and enhancing the well-being of the population in remote islands are strategic actions for the government (3). Self-perceived health is higher among men as only 67% of women rated their health status as ‘good or very good’ compared to 76% of men (4).
Investment opportunities introduction
Economic Development Board (EDB) Mauritius directs the efforts in situating the country as a medical hub (5). Government offers free healthcare services and allocate some MUR 14.5 billion (USD 300 million) to health budget (6). Various incentives, Extensive Exclusive Economic Zone (EEZ) and untapped marine resources stand as prospects for the sector (7).
Key bottlenecks introduction
Growing burden of noncommunicable diseases (NCDs) and high reliance on medical equipment and pharmaceutical imports are the key challenges. Certain specialized treatment cannot be undertaken in Mauritius and patients must be sent abroad. Absence of a central computerized data repository for health and lack of strong regulation limit the development of the sector (3).
Health Care Providers
Development need
Addressing the growing burden of chronic diseases requires specialized healthcare delivery. High immigration and ageing population intensify the need for treating noncommunicable diseases (NCDs), mainly cancer and diabetes. Reducing priority disease burdens is needed to operationalize the Africa health strategy (3, 9).
Policy priority
In 2021-22 Budget, more than USD 50 million was allocated for the construction of healthcare facilities, including a cancer center and an eye hospital, in continuation of policies to provide specialized and quality healthcare for an aging population. Partnering with private sector is targeted to reinforce the independence of the healthcare system from budget constraints (6).
Gender inequalities and marginalization issues
Healthcare delivery in remote parts of the country, including Rodrigues, is needed to tackle issues related to women's and children's health. Infant mortality rate was comparatively higher in Rodrigues at 19.8 per 1,000 live births in 2017 (1).
Investment opportunities introduction
Private sector caters 27% of health needs of Mauritius' well-developed health system, and may grow by specializing in geriatrics, cardiology, oncology, and eye treatment, vesting on market potential across continent (above USD 6 billion) and policy incentives, including Visitor Medical Visa allowing foreign patients to come to Mauritius for treatment (3, 8).
Key bottlenecks introduction
Labor force and industry-specific training may fall short for industry's commercial development. Regulatory framework should accommodate development of the medical tourism. Research in medical fields should be improved in collaboration with health communities across East, Central and Southern Africa (3, 8, 9).
Health Care Delivery
Pipeline Opportunity
Medical Tourism Services
Establish and operate private hospitals or clinics providing high-quality healthcare services to Mauritius' population and to patients from Sub-Saharan Africa with limited access to specialized treatment in their home countries. Leverage on the cascading effect that medical tourism will bring to other sectors and the region with positive spillovers through treatment in cardiology, eye treatment, oncology and geriatrics.
Business Case
Market Size and Environment
> USD 1 billion
In 2016, Mauritius welcomed 18,000 foreign in- and out-patients. With patients spending USD 10,000 on average, medical tourism may generate annual revenues of USD 1 billion (3). The Economic Development Board contributes to the market growth by setting up a special desk in 2022 aiming to attract at least 50,000 foreign retirees in Mauritius (6).
Mauritius developed state-of-the-art medical facilities and has highly trained professionals that enable a sustained growth of the medical tourism sector, and positions the countries amongst the world leaders for health care provision (17).
In 2016, patients from Africa spent USD 6 billion on receiving medical treatment abroad, especially in India and South Africa (16).
Indicative Return
> 25%
C-Care, a Mauritian private healthcare group, achieved a gross profit margin of 36% and posted a gross profit of USD 22 million for the year ended 30 June 2021 (18).
Investment Timeframe
Medium Term (5–10 years)
Apollo Group, a private healthcare services provider with strong presence in India and previously in Mauritius, has expanded its facilities in three years to generate positive EBITDA within the following 3-4 years, vouching for return in around 7 years (43).
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Market - High Level of Competition
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
Disease burden across the region is high, especially within the Southern African Development Community (SADC) and in communicable diseases such as HIV and AIDS, tuberculosis, and malaria (44).
Mauritius' ageing population and high prevalence of non-communicable diseases accentuate the need for use of cutting-edge medical technology and advanced healthcare treatment, including for cancer and diabetes treatments (in 2017, diabetes caused 23.1% of death and cancer 13.8%) (1, 3, 17).
Employment vulnerability in the country's tourism sector brought about by over-reliance on beach tourism was exacerbated during the COVID-19 pandemic (1, 26).
Gender & Marginalisation
Subdued access to medical services by women, youth and children in remote areas and in least developed countries from the wider region in Eastern and Southern Africa.
In 2018, 2,380 new cancer cases were registered, among which 1,421 new female cases (28). Therefore, women are more impacted by the lack of local cancer dedicated healthcare services in Mauritius (17).
Expected Development Outcome
Medical tourism services support disease prevention efforts and provides quality healthcare services for underserved populations across the region. The introduction of new specialized treatment options in Mauritius results in positive technology and research spillovers (8, 9).
Medical tourism services support the development of state-of-the-art medical facilities and increase the capital investments in local facilities, upgrading the quality of care for the local population, drawing from the experience of India and South-East Asian countries, among others (20).
Development of medical tourism supports the creation of stable employment and an increase of revenues in the tourism and health sectors through the development of year-round and longer stays of tourists (15).
Gender & Marginalisation
The development of healthcare tourism provide employment opportunities to women and youth (24). Women, specifically, benefit from the spillover effects of the enhancement of healthcare services for medical tourism, especially regarding the development of cancer treatment services (24).
Small-scale tourism actors and other service providers benefit from the enhanced economic activities through medical tourism; since in 2016, foreign patients' average spending amounted to USD 10,000 (3).
Primary SDGs addressed
8.5.2 Unemployment rate, by sex, age and persons with disabilities
8.9.1 Tourism direct GDP as a proportion of total GDP and in growth rate
6.3% (9.7% for female and 4.1% for male) (2019) (20).
8.1% (representing MUR 63.1 billion, USD 1.4 billion) (2019) (22), 9.1% of direct total gross value added (2018) (20).
0.5% globally by 2030 (31).
Reach MUR 120 billion (USD 2.7 billion) of earnings from the tourism sector in 2030 (15).
3.4.1 Mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease
23.2% (18.1% for female and 28.3% for male) (2019) (20).
9.3% globally (31) and a reduction of 5% relative to 2020 by 2024 (3).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Outcome Risks
Medical tourism may exacerbate the inequalities for accessing quality services for Mauritius' population.
Clinics and hospitals serving foreign patients may attract qualified medical personnel at the expense of other healthcare institutions serving national patients.
Clinics and hospitals serving foreign patients may not provide the necessary post-intervention care, leading to complications for patients once back in their home country.
Impact Risks
Medical tourism services may not be accessible to low-income communities and marginalized segments of the society, or may not lead to spillover effects in the national service provision.
Impact Classification
What
Medical tourism services improve healthcare provision to both regional and local populations, provide employment opportunities and enhance revenues of the tourism industry.
Risk
Low-income communities and marginalized segments of the society may not have access to the enhanced health care delivery or benefit from the technology spillover effect.
Contribution
Complementing healthcare R&D and trainings, medical tourism expands innovative healthcare capacities via positive spillover effects from the flow of new human and financial resources.
Impact Thesis
Provide quality healthcare services to underserved patients from the region with positive spillover effects for local patients.
Enabling Environment
Policy Environment
Government Programme, 2015-2019: Emphasizes the need to broaden the tourism product portfolio, including in developing medical tourism (32).
Health Care Strategic Plan, 2020-2024: Mentions medical tourism as one of its strategic goal (strategic goal 26: Support the development of Medical Travel Tourism) in order to become a medical hub (29).
Budget Speech, 2021-2022: Announced that the Economic Development Board (EDB) will launch a special desk that targets to attract at least 50,000 foreign retirees in Mauritius in 2022 (6).
Financial Environment
Financial incentives: The Medical Credit Fund Africa, in partnership with the Bank of Mauritius, offers financing solutions for capacity building and technical assistance for small and medium-sized healthcare businesses across Sub-Saharan Africa with loans of USD 1,000 - 2.5 million (37).
Fiscal incentives: Exemption of VAT on construction of private hospitals/clinics and residential care homes, as well as on medical, surgical and dental equipment; the services are VAT zero-rated and no capital gain tax, exemption of registration duty on purchase/lease of land apply (30).
Other incentives: Companies incorporated in Mauritius are permitted to have 100% foreign ownership, including those operating in health care (30). The Visitor Medical Visa enables foreign patient to come to Mauritius for treatment (1).
Regulatory Environment
Private Health Institution Act, 1989: Regulates the establishment of private medical facilities. It imposes to every private hospital or clinic to obtain a license and sets the conditions to obtain it (33).
Medical Council Act, 1999: Imposes to every medical practitioner employed by a private facility to be registered under the act (34).
Pharmacy Act, 1983 and Dangerous Drugs Act, 2000: Regulate the use and storage of pharmaceuticals (35, 36).
Marketplace Participants
Private Sector
C-Care, La clinique, Polyclinique de L’Ouest Ltée, Artemis Medicare Services Ltd.
Government
Ministry of Tourism, Ministry of Health and Wellness, Economic Development Board (EDB).
Multilaterals
World Health Organization (WHO).
Non-Profit
University of Mauritius.
Target Locations
Mauritius: Countrywide
Mauritius: Flacq
Mauritius: Moka
Mauritius: Plaines Wilhems
Mauritius: Rivière Noire
References
- (1) Ministry of Foreign Affairs, Regional Integration and International Trade. 2019. Voluntary National Review Report of Mauritius. https://foreign.govmu.org/Documents/2020%20-%20migrated%20data/VNR%20REPORT/Mauritius%20VNR%20Report%202019(2).pdf.
- (2) International Trade Administration. 2018. Healthcare Resource Guide: Mauritius. https://2016.export.gov/industry/health/healthcareresourceguide/eg_main_116239.asp.
- (3) Republic of Mauritius - Ministry of Health and Wellness. 2020. Health Sector Strategic Plan 2020-2024. https://health.govmu.org/Documents/Main%20Page/Communique/HSSP%20Final%2004%20March%202021.pdf.
- (4) Republic of Mauritius Ministry of Finance, Economic Planning and Development - Statistics Mauritius. 2020. How Do Mauritians Feel About Their Health? https://statsmauritius.govmu.org/Documents/Census_and_Surveys/LCS/How%20do%20Mauritians%20feel%20about%20their%20health.pdf.
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