STEP analysis and health tourism development in Malaysia - Theory and Practice in Hospitality and Tourism Research - page 265

as trend and development in medical research and
primary care efforts are among the factors repre-
senting technological factors that might influence
the healthcare organization (Harris & Associates,
2006; Piggot, 2000).

medical tourism activity. The flow of medical tour-
ist will increase the price of medical services in
local hospital. This condition will deprive the local
especially underserved population from getting
medical treatment in the local hospital participat-
ing in medical tourism.

2.3 Economic
From the economic perspective, Chanda (2002)
stated that medical tourism can generate an invest-
ment through foreign exchange and additional
resources derived from international companies
who are interested to boost their healthcare services
arm abroad. This is consistent with the government
aim, which is to diverse national income through
the introduction of medical tourism in Malaysia
healthcare. Thailand and India are among the
leading countries in Asia that enjoy the economic
growth due to medical tourism (Hakonsen, Horn
& Toverud, 2009). A supportive government roles
in providing assistance such as tax reduction, land
subsidies and special tariff for imported medical
equipment's helps as a catalyst to the development
of medical tourism and enhance the tourism rate
in the country (Johnston et al., 2010).
Consumer expectation regarding technological
usage and advances as well as trend and develop-
ment in medical research and primary care efforts
are among the factors representing economic fac-
tors that might influence the healthcare organiza-
tion (Harris & Associates, 2006; Piggot, 2000).
Furthermore, the exchange rate that is prom-
ising especially to the high income country visi-
tors might attract more potential patient to seek
for medical tourism services abroad. This is noted
especially when the healthcare services in the
home countries offer higher prices of medical
services compared to the same treatment offered
in the lower or middle income countries (Johnston
et al., 2010). The lower charge and cost for medical
treatment in lower and middle income countries
are owing to the cheap labor and medical facilities
cost without compromising the credential of the
medical professionals (Horowitz & Rosensweig,
2007).
Apart from that, the offering of medical tour-
ism services in the healthcare system will boost
the economic development of the country. It was
found that medical tourist spend double of their
money as compared to those that travel without
medical seeking intention (Crooks et al., 2011;
Johnston et al., 2010). That explained the eager-
ness of certain Asia countries India and Thailand
to assist the development of their medical tourism
industry specifically in the formulation of related
policies (Alvarez et al., 2011). Nevertheless, there
are consequences that need to be acknowledged
in return of the lucrative economic's yield from

2.4 Politic
Politic cannot be dichotomized with any activities
that are happening in the country. The political
factor affect largely to how the population and the
apparatus involved in the decision making react
and response to certain issues.
According to Piggot (2000), the trends and
priorities of the state and national level will con-
tribute on how politician will voice their views
and react to health tourism. This is supported by
(Gwatkin, Bhuiya & Victoria, 2004) who explained
that politician behavior that prefer to support the
trends will support their survival in politic. There-
fore, the influence of political factor is assumed to
have an impact towards medical tourism develop-
ment. Thus, this research will be a milestone to the
nation to advance the notion of medical tourism
and placing Malaysia as an affordable and quality
assured medical hub center in the South East Asia.
Furthermore, it was noted that the support from
the government in terms of policy formulation and
regulations to govern the medical tourism activity
plays a role in affecting the tourism industry (Lee,
2010).
Current state of political status in the country,
health policy trends, change in arrangement involv-
ing national health system and insurance, legislative
and current regulation enforced by the authority
as well the influence from non-government organi-
zation and interest groups to the government are
among the factors representing political factors
that might influence the healthcare organization
environment (Harris & Associates, 2006; Piggot,
2000).

3 DISCUSSION & CONCLUSION

3.1 STEP analysis and health tourism
development
Malaysia has a viable and sound industry of
healthcare. With a promising quality of healthcare
services and lower labor cost, Malaysia can be a
good hub in offering the healthcare tourism serv-
ices to the potential foreigners.
Malaysia has achieved its independence from
the British Crown since 1957 and inherited pretty
much the same system with the Englishman. Since
then, the healthcare industry has emerged and
expand to offer a dual healthcare system which