RUSSIA: Attracting health and wellness investors and tourists to Russia

The tourism industry in Russia is expanding with health resorts a popular choice for vacations, says the Federal Agency of Tourism. Tourism is growing at a rate of 7 % a year and one in three Russians favour health resorts as their vacation destination. Grigory Sarishvili of the Federal Agency comments, "Health resorts are gaining popularity and in certain regions are fully booked all year-round.”

Russia is to spend up to $60 million on a six-year advertising campaign to bolster its image as a tourist destination, as part of the government's programme for the development of tourism through 2018. The $60 million earmarked for advertising will be spent on subjects and programmes about Russia on federal channels, promotion on social networks, exhibitions, the organization of presentations about Russia in foreign countries, promotional campaigns and the organization of press tours.

While the campaign is directed at both domestic and foreign tourists, the total number of foreign tourists visiting in 2011 is disappointing as European economic problems are affecting the chief suppliers of visitors to Russia: Germany, France, Britain and Italy. Of the 22 million foreign visitors in 2010, only 2.1 million were tourists.

Northern Caucasus Resorts Company (NCRC) is developing a massive system of ski, beach and natural heath spa resorts covering 50,000 sq km in the North Caucasus Mountains, stretching 1,200 km from the Caspian Sea to the Black Sea and bordering Asia. It is attracting Asia-Pacific investors seeking to diversify outside their domestic markets in a new national strategy to use public-private initiatives in tourism to spur much-needed economic growth in depressed regions of the Russian Federation.

Moscow-based NCRC was established last December to drive the massive tourism project, which will create up to 300,000 new jobs. A collaboration with the federal government, the development is part of a long-term strategy to address the economic lag that underlies social tensions in the North Caucasus region. The ten-year project is anticipated to require up to $30 billion to complete all phases, including a cluster of five world-class skiing and five modern seaside resorts, as well as an array of health spas that will take advantage of the area's legendary healing mineral and hot springs. The eventual aim is 150,000 visitors a day.

The Russian government has designated the entire 50,000-sq-km development area a special economic zone. State guarantees will cover up to 70 % of investments for three to ten years. The state will impose no corporate or transportation taxes for the first ten years, no land taxes for five years and no VAT tax will be applied on equipment imported into the SEZ. The project offers opportunities for foreign companies interested in hospitality, health and wellness, food and beverage, retail, real estate, logistics and warehousing industries.

The French state-owned banking group and long-term investor Caisse des Depots et Consignations (CDC) has signed a strategic joint venture with NCRC to provide advanced technical, legal, planning and environmental expertise to support the project. 20 French companies have already expressed interest in investing in ski lifts, hotels, airports, mountain tunnel and other construction projects.

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SRI LANKA: Sri Lanka hospitals to increase capacity and seek medical tourists

The Lanka Hospitals Corporation is looking to increase capacity and expand into regions beyond Colombo. It is also exploring partnerships with investors. Lakith Peiris of Lanka Hospitals says, “Capacity increase at the current premises is being discussed and we will add 100 more rooms and new theatres and clinics this year. We are discussing with other parties and investors the possibility of partnerships or joint ventures to build new hospitals in the country. These discussions are at the early stages and we are still exploring the possibilities. On April 1 the first preliminary care centre will be opened in Malabe. This will house an outpatient department, laboratory, pharmacy, emergency care and also preliminary care. We will open six such centres in the Colombo suburbs this year.”

The hospital has plans to open an international patient care centre in a bid to cater to foreign patients. It will start to promote medical tourism this year, as it believes Sri Lanka is well on its way to be recognised as a medical destination. The former Apollo Hospital was rebranded as Lanka Hospitals in November 2009.

Another company believes that the country has potential. Ashok Pathirage of Softlogic Holdings adds, “ Sri Lanka has a well developed healthcare sector and the country should promote health tourism where there is a huge potential in the international market. The country’s medical sector is highly qualified and is capable of providing specialized treatment. Sri Lanka could be promoted as a health tourism destination with the expected influx of tourists. We could offer specialized services as the country has international standard hospitals and medical staff. Not only ayurveda treatment but western medication could be provided for the foreigners thereby earning foreign exchange. The focus should be to become a treatment centre similar to services offered by Singapore. The authorities should encourage modern private healthcare institutions to attract foreign patients. The sector needs incentives to upgrade its hospitals to be on par with international standards.”

Local conglomerate Softlogic Holdings plans to set up a state-of-the-art hospital in Kandy with a substantial investment. This hospital is at the design stage and will have 100 beds. The fully equipped hospital will be ready for the public in 30 months. The company also plans to set up a specialist cancer treatment centre and negotiations are currently underway. The company is getting ready to cater to the international market. Softlogic acquired shares in Asiri Hospitals in 2006 and in Asiri Surgical Hospitals in 2007.It has now controls the Asiri group of 4 hospitals consists of 4 hospitals and the newly planned one will be the largest private hospital in Colombo.

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