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Medical Tourism from Russia
Market size, characteristics & potential
Kim WaddoupCEO aiGroup, Russia
Organiser of the bi-annual Moscow MedShow
Brief history of current Russia- 1991 end of communism & dissolution of USSR
- 1991 Yeltsin became the first democratically elected President
- 1991-98 troublesome(wild) years for an emerging country
- 1998 August economic crisis
- 2000-2008 The (1st) Putin years
- 2008-2012 Medvedev-Putin tandem
- President Putin re-elected 2012
The Current Situation
What is the effect to the ‘normal’ people of Russia (Moscow)?
No French/Italian cheese due to sanctions!
Travel abroad has become more expensive due to cutbacks
Inflation up but prices for domestic products only slight increases
Unemployment only slightly increased
As the majority of the middle class have their savings in hard currency there has been minimal effect
07-23 February 2014 XXII Olympic Winter Games in Sochi
18 February 2014 Maidan Protest reaches peak in Kiev
18 March 2014 Crimean Crisis (annexation)
March 2014 first sanctions imposed
Dec 2014-Feb 2015 Rouble devalues by 56% (now 22%)
Medical Facilities in Russia
54.0%
28.5%
1.5%
Poor
Sufficient
Good
How the local population estimate the national health care system:
All citizens of the Russian Federation have the right to free healthcare. There has been health care reform/expenditure, gaps remain in the system.
Often extensive delays for suitable treatment. Opinion on health care in Russia is low with only 1.5% indicating that
services are good.
How large is the Russian medical Tourism market?
1. Official Volume. There are no official figures!
2. Claims varies from 60,000-300,000/year.3. Valued from $.700 million to US$.2.5 billion
dollars.4. An un-regulated market and if the costs of
paid clicks on Russia’s leading search engine are indicative, it is a large and profitable market with German clinics paying up to $.50 per click.
5. 36.8 million tourism trips abroad in 2014. 16.5% are supposedly for Medical tourism.
6. In 2013 Russia was ranked in 4th position for International Tourism expenditure (UNWTO).
How much do Russians spend on Medical Treatments abroad
Source Moscow MedShow 2015
45.3%
19.8%
34.9%Less than 10,000 €
10,000 € – 25,000 €
More than 25,000 €
What Treatments are Russians looking for abroad?
35.9%
27.5%
20.4%
12.7%
3.5%Diagnosis and
treatment
Surgery abroad
Cosmetic surgery
Dental treatment
Spa/Preventative
treatments
Source Moscow MedShow 2015
43.1%
16.3%
22.2%
12.0%
6.5%European countries
Asian countries (China,
India, etc.)
Middle East
CIS-countries
Other countries
Which countries are of most interest for Russian treatment abroad?
Source Moscow MedShow 2015
How soon are Russians looking to have medical treatment abroad?
25.3%
44.8%
29.9%Within 1 month
Between 2 and 6
months
More than 6 months
Source Moscow MedShow 2015
Who are your potential Russian patients? Upper middle class to elite
Affluent/financially secure
Well educated professionals in high positions
Considerable disposable income
Majority have savings in hard currency and don’t trust the Rouble
Whilst many will speak English (or other languages), your offers
must be in Russian
Most live well and enjoy minimal fixed costs in Russia
Best route to access the Russian marketMany International clinics have adapted a direct
approach
Why?
- Few specialised facilitators/agencies
- Limited promotion opportunities
(Magazine/Portals)
A direct approach requires:
- Russian speaking staff
- An understanding of the Russian search engines
- Attendance at B2C Medical Tourism exhibitions
Finding and working with Russian clients/patients
A vast country with 147 million people,
crossing 11 time zones!
28% of the search volume for medical
treatment abroad came from Moscow,
5.3% from St. Petersburg and the rest
from all over Russia!
The poor state of the national healthcare
in the regions also provides opportunity
Russian people speak Russian! – All
material must be in Russian and you
must have Russian speaking staff
Medical Tourism from Russia
Tremendous potential
Un-regulated market requiring creative concepts
Not following ‘traditional’ marketing methods
Represents many challenges
High rewards for the Brave!
Thank you for your attentionKim Waddoup
Moscow MedShow
