In the past, the medical tourism market in China primarily involved Chinese citizens traveling abroad for medical treatments. However, Hainan Province in South China has been actively boosting its medical sector, with a particular focus on the Hainan Boao Lecheng International Medical Tourism Pilot Zone (海南博鳌乐城国际医疗旅游先行区), also known as Boao Hope City. This initiative targets four key sectors: medical treatment, medical cosmetology, rehabilitation, and health promotion. The aim is to create a world-class medical tourism destination and medical technology innovation center by 2030. The rapid development of the pilot zone, accompanied by its many preferential policies and strong international collaborations make it an attractive destination for medical tourists and businesses alike.
Download our China luxury market report
Boao Hope City: a dynamic hub for medical tourism in Hainan
A concentration of internationally renowned medical institutions
Established in 2013 with the approval of China’s State Council, Boao Hope City is China’s first and only special medical zone. The pilot zone spans over 20 kilometers and hosts 26 medical institutions. These include globally renowned names such as South Korea’s JK Plastic Surgery and Raffles Medical Group. As of July 2023, 20 more medical institutions were under construction in the pilot zone.
A pilot zone attracting both domestic and international tourists
Initially, the zone attracted domestic tourists because of the geographical proximity, and familiar cultural and linguistic environment. Little by little, the pilot zone also started attracting foreign tourists, especially from Southeast Asia. Thanks to the province’s special visa policy, tourists from 59 countries can stay in Hainan for up to 30 days without a visa, making getting medical treatments there easier. Moreover, the pilot zone offers treatment at affordable prices compared to other countries. For example, a Boston Keratoprosthesis implantation, a type of eye surgery, costs RMB 700,000 in the US (USD 98,000) but only RMB 100,000 (USD 14,000) in Boao Hope City.
The pilot zone welcomed about 75,000 medical tourists in 2019, and 189,000 in 2022, an impressive 152% increase. In the first two months of 2023, the zone welcomed 34,651 visitors, a year-on-year increase of 37.2%.
Strong international collaborations
Boao Hope City boasts strong collaborations with over 170 pharmaceutical and medical device companies from more than 20 countries and regions, highlighting its global appeal. The collaborations the pilot zone maintains with international companies have allowed the introduction of more than 350 medical devices not yet available in China into Boao Hope City. To foster these collaborations, delegations from the Hainan province visit pharmaceutical companies and other potential partners in several countries, like Denmark and the US. Likewise, foreign guests from Brazil, the Netherlands, the UK, and Japan also visited the pilot zone.
Policy advantages of Boao Hope City
Boao Hope City has become an attractive destination for patients and investors thanks to its nine special preferential policies.
Access to treatments not yet available in China
One key advantage of the pilot zone is its access to treatment methods that are not yet available in Mainland China. Medical institutions within the zone can import and use pharmaceuticals and medical devices already available in other countries as clinically urgent items before obtaining approval in China. This allows domestic patients to access innovative treatments without the need to travel abroad. Moreover, in special cases, patients can bring medicine out of the pilot zone, usually for no more than 12 weeks. In that case, medical institutions submit necessary documents to the Lecheng Medical Products Administration. When patients are discharged, the institution links their information with the drug details on the licensed drug and device traceability management platform. Each package of the drug or device is tagged with a traceability code, ensuring comprehensive tracking capabilities.
In 2020, an exhibition showcasing innovative medicines and medical equipment debuted in the Pilot Zone, featuring 810 exhibits sourced from 16 countries. Notably, 441 of these exhibits had yet to receive approval for sale in the Chinese mainland market. For example, during the exhibition, Swiss pharmaceutical giant Novartis unveiled Beovu, a ground-breaking drug for the treatment of Neovascular Age-related Macular Degeneration (AMD), marking its introduction to China for the first time.
Empowering medical institutions with real-world evidence (RWE)
Moreover, the pilot zone enhances the negotiating power of medical institutions within its precincts. Since 2020, the National Medical Products Administration has introduced regulations on real-world evidence (RWE), with the pilot zone being the exclusive RWE pilot in China. This means that clinical data from licensed items used within the zone can be transformed into RWE for registration and approval in China. Consequently, medical institutions in the zone possess added leverage in negotiations with international pharmaceutical and medical device manufacturers seeking to enter the Chinese market.
These policy advantages, coupled with streamlined approval processes and preferential import tariffs, position Boao Hope City as a leader in the global medical tourism landscape, attracting investment, fostering innovation, and ultimately benefiting both patients and healthcare providers alike.
Advantages for patients in Boao Hope City
Patients benefit significantly from the unique offerings of Boao Hope City. The zone has introduced several initiatives aimed at improving patient access to cutting-edge treatments and reducing healthcare costs.
Insurance coverage for imported medicines
One significant advantage for patients is the introduction of insurance coverage for imported medicines within the pilot zone. Established in 2020 by the Boao Hope City administration, this commercial insurance scheme addresses the gap in coverage for imported medications, ensuring that patients have access to essential drugs at affordable prices. As of 2022, the insurance covered 100 drugs for 35 common cancers and 17 for rare diseases, providing patients with access to the latest treatments without financial burden.
A hub of cutting-edge medical treatments in Asia
As mentioned, patients in Boao Hope City have access to state-of-the-art medicine and techniques that may not be available in China or their home countries yet. This includes advanced procedures such as innovative robotic-assisted and plastic surgeries, which offer added precision. The medical products to be used in the pilot zone must possess a CE mark, an FDA license, or PMDA approval, which respectively indicate that they have been approved in the European Union, the US, and Japan for their safe and effective use. Moreover, medical institutions bear the responsibility for managing safety risks associated with products used in urgent clinical situations. Overall, the pilot zone has evolved into a hub for accessing state-of-the-art medical treatments in Asia, providing patients in neighboring countries with a more affordable avenue for accessing reliable healthcare.
Advantages for medical businesses
Boao Hope City also presents numerous advantages for businesses, in particular pharmaceutical companies and medical device manufacturers. From access to a vast market to favorable policies and incentives, the pilot zone offers a conducive environment for growth.
By partnering with Boao Hope City, foreign medical device manufacturers benefit from access to the world’s largest market for medical products, with estimates projecting to reach USD 300 billion by 2025.
Moreover, as mentioned, the pilot zone allows these manufacturers to gather real-world data as local clinical evidence, streamlining the national registration approval process. This process significantly reduces the time required for approval to just a few months, saving businesses three to five years compared to traditional registration methods. As of March 2024, 30 medical devices and drugs have been through this process, among which 13 have obtained approval for being sold in China.
What to learn from the epicenter of medical tourism in Hainan:
- Hainan Province, particularly the Boao Hope City, is focused on developing its medical sector to become a leading international medical tourism destination by 2030.
- Boao Hope City hosts numerous renowned medical institutions, attracting both domestic and international patients.
- The pilot zone benefits from strong international collaborations and policies that allow access to cutting-edge treatments not yet available in Mainland China.
- Patients benefit from insurance coverage for imported medicines and access to state-of-the-art medical treatments.
