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Home IMTJ The Trump factor: Protectionism and medical tourism

The Trump factor: Protectionism and medical tourism

Countries worldwide are tightening their borders, and bringing in protectionist policies. The U.S President is attempting to impose a ban on certain nationalities entering the country. What does this mean for medical tourism?

In recent months we appear to be moving rapidly away from globalisation into a world where national interest trumps broader interests.

Almost overnight, we see protectionist policies from the USA and the UK – with other countries keen to follow suit.

This will change the face of medical tourism on who goes where and for what.

In the USA, there is a new ban on international NGOs – in the US or any other country – from providing abortion services or offering information about abortions if they receive US funding.

In the UK, politicians repeatedly, and with very dubious figures, blame health tourists for the NHS’s funding problems. This makes it harder for foreigners to travel to the UK for medical treatment in NHS hospitals – even where they are going to the private patient unit of an NHS hospital, as they are put off by the often obnoxious political rhetoric.

Trump is pushing forward with an America First policy that will impact on global tourism and on the back of reducing inbound tourism numbers will almost certainly reduce inbound medical tourism numbers.

Trump’s new executive orders give immigration agents broader powers to enforce immigration law, dictating who gets swept up into the system and how the department uses its limited resources. There is now a long list of reasons a person can be deported without further ado including “anybody that an immigration officer feels could pose a risk to public safety and national security.”

Medical tourism from the Middle East

A suspension of travel visas issued from a selection of seven overwhelmingly Muslim countries (and non-Americans who have visited those countries since 2011) fosters an increasingly anti Muslim rhetoric in the USA. Seven countries have bans – Iran, Iraq, Libya, Somalia, Syria, Sudan and Yemen.

The numbers of inbound medical tourists from the seven countries may be small but the extra security, tighter visa rules and general racism will make patients from the MENA regions and even parts of Asia think very hard before going to the US for treatment. Unthinkable a year ago, there could even be a complete ban on all Muslims visiting the USA.

Medical tourism to and from Mexico

Diplomatic relations between the US and Mexico are at an all time low. With the building of the wall between Mexico and the USA it will be more difficult for Americans, particularly those with Mexican roots, going to Mexico for medical treatment. The future of cross-border insurance and healthcare deals is at risk.

Many medical tourists are Hispanic and come from Latin and South America. The increase in racism, attitude to Mexico and general attitudes to other countries and races will make many of these think twice before seeking treatment in the USA.

For all nationalities, US Immigration security checks will increase, and security throughout America will be at an enhanced level, and the confusing rules subject to the interpretation of local low paid immigration officials.

Trump has been derogatory about China and most European countries. The Chinese had begun going to the USA in large numbers for birth tourism so bearing in mind the new administration’s attitude to that, and comments on China, the Chinese may start to look elsewhere.

President Trump has covered a number of areas in his various messages before and during his presidency. Almost all of them will affect global tourism. From a global perspective they are consistently negative, but this produces serious opportunities for countries to take medical tourism business that semi-automatically looked at the USA in the past.

Tourism numbers down?

The immediate effect will be a reduction in tourism to the US. Many will either not go, or not be able to go to the USA, as a result of more stringent immigration procedures. There will almost certainly be a fall in medical tourism numbers.

At present, there seems no impact on outbound US medical tourism. But if you remember your school science, every negative action has a positive reaction: so every time that Trump takes action against a country or its citizens, then sooner or later there will be a reaction against Americans and American businesses. In some countries, Americans will no longer be welcome.

Iran was the first country, and almost certainly will not be the last, to impose a total ban on US travellers.

Some EU countries will pursue anti-American policies and issue negative statements in tit-for-tat campaigns to galvanise popularity, bolster their own solidarity, pride and negotiating terms. This could see not only a reduction in tourism to the US but also a reduction of business for global US hotel brands and American airlines.

Any business relying on inbound or outbound medical tourism business involving the USA may need a contingency plan for either seeking new customers or sending those customers to other countries.

The next year could see great change in medical tourism on who goes where,  but trying to predict is a nightmare as it could change between starting to read this feature and getting to the end!

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Ian Youngman
Ian Youngman is a writer and researcher specialising in insurance and health. He writes regularly for a variety of magazines, newsletters, and on-line services. Ian achieved an honours degree in Economics from the University of Liverpool, and was a co-founder of The General Insurance Market Research Association. Ian also has widespread experience within the insurance industry at management level, working for brokers, a bank and an insurance company.