The Indonesian Rupiah remains weak amidst the weak global oil prices. Since its peak in March 2014, the Rupiah has weakened by 5.7% against the Singapore dollar. This weakening of the Indonesian currency raises concerns for the medical tourism sector in Singapore, as 61% of the segment originates from Indonesian arrivals to Singapore. In 2013, medical tourism constituted 3% (S$832 million) of the total tourism receipts in Singapore. Singapore has long been regarded as one of the preferred medical destinations for the region. In recent times, however, growing competition from neighbouring countries has emerged with increased efforts to attract this sector. Malaysia has plans to develop Mediplex, the country’s first healthcare and retail centre, as well as provide tailored services for passengers arriving at Penang and Kuala Lumpur airports. Indonesia, on the other hand, has plans to turn Bali into an enclave for wellness, and a destination for surgery and convalescence.
HVS APAC HOSPITALITY NEWSLETTER.