A robust revival in medical tourism was one of the main contributors to a sequential improvement in patient footfall at hospitals throughout the FY23, rating agency ICRA has said.
Maintaining a stable outlook for the Indian hospital industry, ICRA said the industry’s performance is being driven by a surge in non-communicable lifestyle diseases, increasing per capita healthcare spending, rising awareness, expanded health insurance coverage, and a rise in medical tourism.
Medical tourism is showing signs of recovery from the impact of the Covid-19 pandemic. According to data provided by the Ministry of Tourism, foreign tourist arrivals (FTA) for medical purposes grew steadily from 2017 to 2019. In 2017, the FTA figure stood at 495,000, which saw a significant increase to 644,000 in 2018 and further to 697,000 in 2019. This upward trend underscored India’s appeal as a cost-effective destination for high-quality medical treatments and advanced healthcare facilities.
However, the onset of the Covid-19 pandemic in 2020 brought about a dramatic shift. FTA for medical purposes plummeted to 183,000 as international travel restrictions and lockdowns came into force. Despite pandemic-related challenges, the FTA figure for medical purposes rebounded to 304,000 in FY2
