The Development of Medical Tourism in Japan: Current Status and Prospects

Medical tourism refers to the phenomenon of patients traveling abroad to receive medical treatment. In recent years, the market for medical tourism has been expanding rapidly. Japan, with its advanced medical technology and abundant tourism resources, is also expected to grow significantly in this field. This article provides explanations of the history, current status, success factors, and future challenges and prospects of medical tourism in Japan.

History and Background of Medical Tourism of Japan

Medical tourism began to gain attention in Japan in the late 2000s. A major turning point came in 2009 when the Democratic Party administration introduced the “New Growth Strategy,” which positioned medical tourism as one of the pillars supporting economic growth. This strategy aimed to “utilize advanced medical technology and actively accept foreign patients to generate economic benefits.”

In 2010, the Cabinet Secretariat established the “Office for Promotion of Medical Innovation,” marking the beginning of full-scale institutional reforms and promotional activities to accommodate foreign patients. That same year, the Japan Tourism Agency incorporated medical tourism into its “Tourism Nation Promotion Basic Plan,” launching related projects nationwide.

Government Initiatives and Progress

Against this background, the government implemented three specific measures to promote medical tourism:

Creation of the Medical Stay Visa:
A visa system was established to allow foreign patients to receive treatment in Japan. With this visa, patients can stay for up to one year, and it can be renewed up to two times, including for accompanying persons.

Accredited Intermediary System:
In 2013, the Ministry of Health, Labour and Welfare launched the “Medical Stay Visa Guarantor Registration System,” allowing registered organizations to guarantee the identity of foreign patients.

International Promotion Activities:
Organizations such as the Japan National Tourism Organization (JNTO) and JETRO (Japan External Trade Organization) have taken the lead in promoting Japanese medical technology and services to overseas markets. For example, the “Medical Excellence JAPAN” platform was established in 2013 to support the international expansion of Japanese healthcare.

As a result of these efforts, although the number of visitors temporarily declined during the COVID-19 pandemic, medical tourism in Japan has been on a growth trend since 2023.

Current Status and Success Factors

Market Scale and Demand

According to estimates by the Development Bank of Japan (DBJ), the Japanese medical tourism market could reach approximately 550 billion yen by 2020. Although the market temporarily stagnated due to the impact of COVID-19, it has been recovering since 2023.

Recent forecasts predict that the Japanese medical tourism market will reach about USD 4.9 billion (approximately 735 billion yen) in 2024, and grow to USD 13.25 billion (about 1.9875 trillion yen) by 2029. This represents a rapid expansion with an average annual growth rate (CAGR) of 22%.

Globally, the market was valued at about 14 trillion yen in 2022 and is expected to reach around 48 trillion yen by 2028, highlighting the need for Japan to strengthen its competitiveness in this growing sector.

Japan’s Strengths

Japan’s appeal as a destination for medical tourism lies in several key factors:

Advanced Medical Technology:
Japan is globally recognized for cutting-edge fields such as cancer treatment, regenerative medicine, and robotic surgery. For instance, Japan’s five-year relative survival rates are among the highest worldwide: 71.5% for stomach cancer and 71.1% for colorectal cancer.

Rapid Diagnosis and Treatment:
While other countries may require months-long waits for advanced examinations or surgeries, Japan offers relatively short waiting times. For example, its CT scan availability is among the highest globally at 111.49 units per million people.

Safety and Reliability:
With stringent infection control measures and hygiene management practices, Japan boasts an infection rate of approximately 5%, significantly lower than the global average of 10%.

Hospitality Culture:
The meticulous care provided to each patient reflects Japan’s renowned hospitality (“omotenashi”), which is highly appreciated by international patients.

Integration with Tourism Resources:
Post-treatment relaxation options such as hot springs or cultural experiences enhance Japan’s value proposition as a medical tourism destination. With over 3,000 hot spring locations nationwide, these resources can be uniquely combined with healthcare services.

Challenges and Prospects

While there is strong potential for growth in Japan’s medical tourism sector, several challenges must be addressed for Japan to become a preferred destination for foreign patients.

Language Barriers:
A shortage of multilingual staff and interpreters remains a significant challenge. Beyond English, there is growing demand for Chinese and Arabic language support. A Ministry of Health survey from 2019 revealed that only about 30% of hospitals accepting foreign patients had adequate interpretation systems in place.

Cost Competitiveness:
Compared to countries like Thailand or India, treatment costs in Japan tend to be higher. For example, coronary artery bypass surgery costs approximately ¥3 million in Japan but only around ¥1 million in Thailand. Differentiation through high-value-added services is essential.

Balancing Domestic Patient Needs:
Expanding services for foreign patients raises concerns about potential impacts on domestic healthcare services (e.g., increased waiting times). Establishing systems that balance both needs is crucial.

Looking ahead, new developments for the growth of medical tourism in Japan include the use of digital technology, promotion of regional collaboration models, acquisition of international accreditation, and development of human resources.

Utilization of Digital Technology:
The adoption of telemedicine and AI diagnostic technologies can enhance efficiency and service quality. AI-powered imaging diagnostic support systems are expected to improve diagnostic accuracy while streamlining processes.

Promotion of Regional Collaboration Models:
Collaborating with local governments can leverage regional assets such as hot springs or natural environments for program development unique to Japan. For instance, Beppu City in Oita Prefecture promotes “hot spring medical tourism,” combining therapeutic hot springs with advanced healthcare.

Acquisition of International Certifications:
Obtaining international certifications like Joint Commission International (JCI) enhances trustworthiness among global patients. As of 2023, 26 Japanese institutions have acquired JCI accreditation.

Education and Human Resource Development:
Beyond physicians, fostering coordinators and interpreters is essential for comprehensive service delivery systems. The Ministry of Health has developed a “Medical Interpreter Training Curriculum” to cultivate skilled professionals.

By implementing these initiatives and further enhancing trust and confidence in Japanese healthcare, it is expected that the number of travelers seeking medical tourism in Japan will continue to increase.

Conclusion

Japan has the potential to become a globally competitive hub for medical tourism by leveraging its advanced medical technology, safety, and culture of hospitality, while also addressing existing challenges. In particular, strengthening language support, legal frameworks, and multidisciplinary collaboration is urgent.

The projected market size of approximately 735 billion yen in 2024 and about 1.9875 trillion yen in 2029 demonstrates the significant growth potential of Japan’s medical tourism market. Achieving this growth will require the use of digital technology, collaboration with regional resources, acquisition of international accreditation, and the development of specialized human resources.

Furthermore, by approaching medical tourism from new perspectives-such as regional revitalization and digital technology-Japan can continue to offer unique value. There is growing demand for neurological care in an aging society and for high survival rates in cancer treatment, and Japan’s strengths in these areas can be leveraged to provide distinctive services.

It is essential that medical institutions, the government, local authorities, and private companies work together to ensure that Japan remains a country of choice for many foreign patients. Medical tourism is not only an economic opportunity, but also an excellent chance to showcase Japanese medical technology and culture to the world. The development of this growth industry is expected to further enhance the quality of Japanese healthcare and strengthen Japan’s international standing.

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