TAIWAN PROMOTES MEDICAL TOURISM OVERSEAS

UNCLAS TAIPEI 001634 SIPDIS SIPDIS STATE FOR EAP/ TC, EAP/EP E.O. 12958: N/A TAGS: ETRD PREL CH TW SUBJECT: TAIWAN PROMOTES MEDICAL TOURISM OVERSEAS ¶1. (U) Summary. Taiwan has announced plans to allow entry of mainland Chinese for medical treatment, beginning August 1, 2007. Starting in 2002, Taiwan has permitted a limited number of mainland Chinese to visit the island each year, traveling to Taiwan via a transit location such as Hong Kong. Over the past several years, tourism industry representative bodies from the two sides of the Taiwan Strait have been working to finalize an agreement to liberalize tourist travel between China and Taiwan, so far without success. The medical treatment measure would both circumvent the apparently stalemated tourism talks and be a money-maker for Taiwan's world-class medical industry. Estimates are the ambitious plan could attract as many as 100,000 customers, generate NTD 7 billion (USD 230 million) in 3 years, and create 3,500 jobs in Taiwan. End Summary. NEW PREMIER ANNOUNCES MEDICAL TOURISM INITIATIVE ¶2. (U) On July 11, Premier Chang Chun-hsiung announced a plan to promote Taiwan's medical services to mainland Chinese. The initial goal of the new program, formally called the 'medical service internationalization flagship program,' is to attract 100,000 customers, generate NTD 7 billion in business in 3 years and create 3,500 jobs in Taiwan. In order to have the program in place by August 1, 2007, Premier Chang directed that regulations and guidelines for visa applications, hospital admissions, and entry of mainland Chinese to Taiwan be completed by the end of July. TREATMENT TO BE OFFERED IN FIVE MEDICAL SPECIALTIES ¶3. (U) The medical tourism program, which will be under the auspices of Taiwan's Department of Health (DOH),will emphasize Taiwan's five strongest medical specialties: liver transplants, facial surgery, heart surgery, artificial insemination and joint replacement surgery. The program is designed to attract mainland Chinese, in particular, but will also encompass overseas Taiwanese (including those who may be citizens of other countries such as the U.S.). DOH will try to work through mainland hospitals to introduce Taiwan's medical tourism program to mainland Chinese. SPECIAL APPROVAL FOR QUALIFIED PRC PATIENTS ¶4. (U) Taiwan now permits mainland Chinese to visit Taiwan for commercial activities, professional exchanges and limited tourism. The medical tourism program, however, will require Taiwan's Mainland Affairs Council (MAC) to expand the entry of mainland Chinese into Taiwan for the five medical treatments listed in paragraph 3. This plan will avoid the need to revise Taiwan's 'Act Governing RELATIONS between People of the Taiwan Area and the Mainland Area,' which would require approval by the Legislative Yuan and would likely delay implementation of the program. In order to gain entry under the program, a mainland Chinese patient would first apply for admission to any of the Taiwan hospitals already screened and found qualified by DOH. After a hospital accepts a patient, it would submit the patient's application for an entry permit to the Bureau of Immigration. At that time, the Bureau of Immigration would inform DOH and MAC of the application. DOH would evaluate the medical necessity of the case and MAC would assess possible political sensitivity, for example if the applicant is a high ranking mainland official. Based on advice from DOH and MAC, the Bureau of Immigration would then make a final decision whether to approve the entry permit. Entry permits will initially be for two-month duration, with a possible extension up to four-months based on treatment needs. COMMENT ¶5. (SBU) Implementation of the medical tourism program by the announced start-up date of August 1 would require an unprecedented level of inter-agency cooperation to resolve a host of issues from issuance of visas to payment of hospital bills. Although MAC has told us it is fully committed to increasing the number of mainlanders coming to Taiwan for medical treatment, since 2000 only 6 mainland Chinese have been given special approval to enter for medical treatment. With cross-Strait tourism talks stalled, Taiwan businesses and many officials are calling for measures to enhance Taiwan's tourism competitiveness and increase economic growth. However, it is unlikely that the "medical service internationalization flagship program" will result in significant expansion of cross-Strait tourism in the near future.