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Medical Tourism Growth Perspectives in Armenia

Abstract

The presented study examines the relevant problems of development of the pharmaceutical industry in Armenia. Aim. The presented study aims to determine the prospects of development of medical tourism in Armenia in the medium term. Tasks. The authors identify the source countries, i.e. tourism products, which have been or can be attractive to foreign tourists, and key factors of success to propose a possible scenario for the development of medical tourism in the medium term. Methods. This study uses general scientific methods of cognition, including analytical and methodological approaches, and elements of forecasting, structural and comparative analysis. The analytical research method, review of literature, and analysis of medical tourism in Armenia in 2006-2017 are used to determine the potential development path for medical tourism. Results. Since 2013, the number of patients attracted to Armenia has grown, leading to an increase in the proceeds from medical and health tourism. In 2017, these have reached its highest level since 2006, increasing eightfold over the same period. Kazakhstan has become the leading source country in terms of the number of patients who have undergone cosmetic surgery in Armenia, closely followed by Armenians and Russians from Russia (90% of Russian origin). The Armenian diaspora also prefers Armenia for plastic surgery. Dental services are another growth factor in this sector. Competitive prices, professional doctors and medical equipment play a vital role in attracting medical tourists to Armenia. Conclusions. In the medium term, Armenia is likely to rely on medical tourists from both Kazakhstan and Russia as well as Armenians from developed countries and the CIS (including Georgia). Price competitiveness will be the decisive factor. Word of mouth, personal contacts, and social networks, combined with positive articles in medical tourism journals and on websites of specialized consulting companies advertising Armenia as a favorable destination for medical tourism, will serve as efficient distribution channels capable of attracting more patients. New medical centers will be required to meet the increasing demand. Government support for the tour operators that promote medical tourism in Armenia may be crucial, along with government support and incentives for investors to build clinics and buy equipment. As a result, the expenses of foreigners on medical and health tourism may increase more than twofold, reaching 250 million US dollars by 2022. The obtained results can be used by the State Committee for Tourism in the preparation of future plans and strategies for the development of medical tourism, etc.

About the Authors

Vladimir L. Arutyunyan
Institute of Economics named afier M. Kotanyan of the National Academy of Sciences of Armenia
Russian Federation


Sergey V. Dokholyan
Institute of Social and Economic Research Dagestan Scientific Center, Russian Academy of Sciences
Russian Federation


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Review

For citations:


Arutyunyan V.L., Dokholyan S.V. Medical Tourism Growth Perspectives in Armenia. Economics and Management. 2018;(11):19-28. (In Russ.)

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ISSN 1998-1627 (Print)