Medical Tourism Category Overview

Yandex International Business Development ussales@yandex-team.ru +1 857.288.8762 uksales@yandex-team.ru +44 020 3291 3306

•  Market Volume •  Market Structure

Medical Tourism Market and Health Treatment Abroad

Market Size

In 2013 Russians spent over 1.1 billion dollars on health care abroad.

0.86 0.98

1.10

0

0.2

0.4

0.6

0.8

1

1.2

2011 2012 2013

Annual Expenditure on Medical Services Provided to Russians Abroad

Source: Insurance Marketing Report

Bill

ions

of D

olla

rs

Market Structure by Business Segment

Medical tourism makes up the majority of all healthcare services provided abroad (58,8% of market).

Source: Insurance Marketing Report

Medical tourism 58.8% Direct appeal to the

hospital 20.0%

Travellers insurance

20.0%

VMI (voluntary medical insurance)

0.8%

International health insurance

0.4%

Top Spenders in International Tourism:

With over $43 billion spent on international tourism in 2012, Russia shows an impressive advance in recent years, moving up to 5th position with over 35% annual growth. Russia along with China, India and Brazil will drive growth in the coming years.

Source: World Tourism Organization (UNWTO), Data as collected by UNWTO June 2013

Beach tourism 28.3%

Sightseeing holiday 19.7%

Medical tourism 16.5%

In the Country 14.2%

Hiking 13.4%

Sanatoriums and rest houses

7.9%

Main Locations & Purposes of Tourism

Medical tourism made up 16.5% of the tourist market in Russia.

120,000 145,000

215 000

300,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2011 2012 2013

Outbound Patient Flow Dynamics 2010-2013

Source: Patient Management

Patie

nts

Over 300,000 Russians traveled abroad for medical care in 2013.

Projected Growth in 2014 In 2014 the number of search queries on outbound medical tourism grew by 23%. Future growth is expected to be fueled by:

•  Population aging and the rise of chronic diseases

•  Rising interest in disease prevention

•  Decreasing trust to the local health care system

•  Rising interest to alternative therapies

•  Motivation behind outbound medical tourism

•  Market structure

Medical Tourism Market and Health Treatment Abroad

Motivation of Outbound Medical Tourism

Source: McKinsey and Company, www.treatment-abroad.ru, Medical & Health Tourism Magazine, №6

Determining factors for outbound medical tourism in Russia:

Going abroad for

tech medical

help 42.0%

Rely on a higher service quality 33.0%

Need urgent help,

cannot obtain

treatment in the home

country 15.0%

Seeking treatment abroad to

save money 10.0%

Other Countries

Cannot obtain

treatment in the home

country 72.0%

Combiningboth

treatment and rest 21.0%

Seeking treatment

in CIS countries to

save money 7.0%

Russia

The lack of domestic high quality treatment in a wide range of cases is the major reason for outbound medical tourism for Russians

Local Opinion on Healthcare in Russia

This objective state of things combined with a profound lack of trust in the local health care system contributes to a low opinion of the Russian healthcare system.

54%

28.5%

1.5%

How does the local population estimate national health care system?

Poor

Sufficient

Good

Source: Medical & Health Tourism Magazine, №6

Determinants for Patient Choice of Healthcare Providers

The Russian audience is still extremely price-conscious. Approximately 50% of searches related to treatment abroad are made by users from the outer regions of the country. Despite the fact that 65%+ of patient flow from Russia is directed to Israel and Germany, “cheap” countries such as Turkey, CIS-countries and Eastern Europe remain popular.

Source: Medical & Health Tourism Magazine, №6

35.0%

32.0%

12.0%

12.0%

8.0% 1.0% The cost of treatment

Range of services

Distance and location convenience

Recommendations of friends and acquaintances Doctor recommendations

Advertising

Segment Volume: •  User interest dynamics •  Audience location

Medical Tourism Market and Health Treatment Abroad

14

1,216,562

1,500,622

1 2

Segment Dynamics

wordstat.yandex.ru. Apr’2012 – Mar’2014

Apr 2012 – Mar 2013

Apr 2013 – Mar 2014

Que

ries

on tr

eatm

ent a

broa

d

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2012-04 2012-05 2012-06 2012-07 2012-08 2012-09 2012-10 2012-11 2012-12 2013-01 2013-02 2013-03 2013-04 2013-05 2013-06 2013-07 2013-08 2013-09 2013-10 2013-11 2013-12 2014-01 2014-02 2014-03

+23%

15

User Interest Dynamics: +17% in 2014

User interest is expected to grow by 17% by 2014.

Forecast (Apr’2014-Sep’2015) Apr’2012-Mar’2014 statistics

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug

Que

ries

16

Audience Location: Top Cities

The majority of searches are made by users from the largest Russian and Ukrainian cities: Moscow, Saint-Petersburg and Kiev (36%). In Russia, searches from Moscow and Saint-Petersburg make up 40%+ of the total volume.

28.05% 5.30%

2.48% 2.43% 2.10% 1.94% 1.59% 1.59% 1.56% 1.23% 1.19% 1.00% 0.99% 0.98% 0.92% 0.89% 0.83% 0.82% 0.78% 0.72%

Moscow

Saint-Petersburg

Ekaterinburg

Kiev

Nizhny Novgorod

Rostov-on-don

Novosibirsk

Krasnoyarsk

Ufa

Irkutsk

Krasnodar

Perm

Chelyabinsk

Samara

Minsk

Saratov

Kazan

Voronezh

Tyumen

Vladivostok

Sear

ch V

olum

e fo

r hea

lth c

are

abro

ad

17

Audience Location: Regional Popularity

Regional popularity is heavily dependent on two factors: •  Purchasing power (high affinity in Moscow: 152% compared to average

107%); •  State of healthcare system in region (the highest affinity: 350-450% in the

north regions of far East).

User Interest in Destinations: •  By regions / countries •  Search patterns

Medical Tourism Market and Health Treatment Abroad

Health Treatment Abroad: Destinations

Queries on medical tourism and health treatment in TOP-10 countries make up to 65% of all queries. Most users are seeking treatment in European countries (40%), Asian (China, India) – 18,3% and Middle East – 22,2%.

39.8%

18.3%

22.2%

12.9%

6.8% European countries

Asian countries (China, India etc)

Middle East

CIS-countries

Other countries

Health Treatment Abroad: Top Countries 46,817

44,118

28,206

17,100

13,486

10,462

7,670

7,510

5,797

5,665

5,338

5,056

4,576

4,448

4,360

Israel

Germany

China

USA

Ukraine

Korea

Bulgaria

Czech Republic

Kazakhstan

India

Turkey

Hungary

Belarus

Japan

Abkhazia

Aver

age

num

ber o

f que

ries

per m

onth

User Interest Dynamics:Top-10 Destinations

0

10,000

20,000

30,000

40,000

50,000

60,000 20

12

May

Ju

n Ju

l A

ug

Sep

O

ct

Nov

D

ec

2013

Fe

b M

ar

Apr

M

ay

Jun

Jul

Aug

S

ep

Oct

N

ov

Dec

20

14

Feb

Mar

Israel

Germany

China

Bulgaria

Czech Republic Hungary

Slovenia

India

Turkey

USA

Que

ries

User Interest Dynamics:Top-10 Destinations

+4%

+69%

-3%

+38%

+14%

+60%

+35% +33% +31% +27%

-0.4

0.1

0.6

1.1

1.6

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000 Is

rael

Ger

man

y

Chi

na

Bul

garia

Cze

ch R

epub

lic

Hun

gary

Slo

veni

a

Indi

a

Turk

ey

US

A

Apr 2012 - Mar 2013 Apr 2013 - Mar 2014

Que

ries

Search Patterns: Generic & Specific Queries

For Israel, Germany, Bulgaria, Czech Republic, Hungary, Abkhazia, user interest has a “universal” form for more generic queries including “clinics”, “hospitals”, “treatment” etc. For Ukraine, Korea, Kazakhstan, India, Turkey, Japan, user interest is more specific. For the majority of queries, users specify the type of operation or disease.

65% 71% 58% 59%

46% 51%

82% 75% 47% 44% 50%

79% 58% 47%

89%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100% Is

rael

Ger

man

y

Chi

na

US

A

Ukr

aine

Kor

ea

Bul

garia

Cze

ch R

epub

lic

Kaz

akhs

tan

Indi

a

Turk

ey

Hun

gary

Bel

arus

Japa

n

Abk

hazi

a

Generic queries Queries on specific deseases

Treatment in Israel: Top-15 Related Diseases 5,164

906

733

652

643

799

696

437

333

316

265

210

174

171

167

Oncology

IVF (In Vitro Fertilization)

Psoriasis

Treatment of the spine (hernia)

Dental implant treatment

Joint replacement surgery, arthritis

Birth tourism and maternal health, infertility

Treatment & care for diabetes

Cerebral palsy

Hepatitis treatment

Epilepsia

Sclerosis

HIV

Allergy

Neurosurgery

Aver

age

num

ber o

f que

ries

per m

onth

Treatment in Germany: Top-15 Related Diseases

1,535

1,077

1,022

866

520

481

444

368

287

268

253

180

153

153

Oncology

Treatment of the spine (including hernia surgery)

Joint replacement surgery, arthritis

Birth tourism and maternal health, infertility

Dental implant treatment

Cerebral palsy

IVF (In Vitro Fertilization)

Epilepsia

Hepatitis treatment

Treatment & care for diabetes

Orthopaedics

HIV

Sclerosis

Neurology

Aver

age

num

ber o

f que

ries

per m

onth

Thank you!

Yandex International Business Development ussales@yandex-team.ru +1 857.288.8762 uksales@yandex-team.ru +44 020 3291 3306