Medical tourism in Thailand: a growing sector presents significant investment opportunities

During our visit to Bangkok in March 2026, many of our local contacts working on local M&A transactions highlighted private healthcare as a key growth sector. From complex cardiac surgeries to affordable aesthetic procedures, medical tourism is now a critical pillar of the national economy.

However, the global pandemic introduced some challenges that continue to hinder growth. The sector ultimately proved resilient in the face of dropping patient numbers, but rising operational costs, a regional talent war for specialised medical staff, and intensifying competition from neighbours like Malaysia and India have prompted the Thai government, private healthcare providers, and international investors to adapt.

Thai government incentives courting more international investment…

Medical equipment manufacturers and healthcare services providers are already subject to several significant exemptions, including total foreign ownership and no foreign employee quotas. Ambitious policy shifts seek to bolster medical tourism even further. 

Since 2023, the Thai government has rolled out a series of new regulatory incentives and expanded existing ones, with a view to attracting even more foreign capital and high-net-worth patients. In 2025, the government introduced a one-year, multiple-entry Medical Treatment Visa that allows prospective patients to be accompanied by up to three family members, in a move aimed at targeting the lucrative long-stay recovery and rehabilitation market. Existing tax holidays were recently widened even further, with import duties waived for producers of medical equipment for clinics with more than 31 beds.

…but talent shortages and regional competition pose a challenge

While the policy framework is increasingly friendly to international investors, operational hurdles continue to cloud the horizon. 

One of the most pressing challenges is a critical shortage of specialised medical personnel, which is exacerbated by Thailand’s rapidly ageing population. Higher labour costs threaten Thailand’s competitive pricing, with other countries in the ASEAN region set to capitalise on this—in late 2025, Malaysia and India reported record upticks in medical arrivals, undercutting Thailand on mid-range surgical costs.

Medical tourism remains vulnerable to fluctuations in its consumers’ disposable income. Middle Eastern and Chinese tourists have been traditionally the highest spenders in Thai hospitals. However, they are vulnerable to increasing oil prices and struggling local economies, which in turn can have an adverse effect on the revenues of major healthcare groups. The recent war in Iran and the resulting energy crisis, with around a fifth of the world’s oil sourced via the Strait of Hormuz, will likely have a significant impact on tourism in Thailand, among other countries.

Ample opportunities for foreign investors

Despite these challenges, Thailand emerges as a safe and stable alternative for clinical trials and biotechnology manufacturing in Southeast Asia. Investment opportunities are abundant, with recent international M&A activity in a range of medical fields, from IVF to aesthetic medicine.

A synergy is gradually emerging between the hospitality and healthcare sectors, with clinics partnering with luxury resorts to launch long-stay medical rehabilitation centres. In August 2024, Dusit International, a leading hotel developer in Thailand, announced plans to introduce medical services at Dusit Suites Hotel Ratchadamri in Bangkok via a partnership with King Chulalongkorn Memorial Hospital and the Thai Red Cross Society. The Thai government is actively encouraging these partnerships through increasingly permissive Medical Treatment Visas. 

While recent investments in healthcare and medical tourism have been dominated by local companies and the government, there is plenty of scope for international investors to capitalise on opportunities. Some international funds are paving the way. In April 2026, Singapore-based Fullerton Fund Management invested in Aura Wellness, a growing aesthetic treatment company.

Medical tourism in Thailand is booming, bringing significant opportunities for both local and international investors. Potential labour shortages and regional competition threaten growth, but the combination of strong government backing and high-quality, internationally recognised facilities make Thailand an ideal destination for international capital.

Risk Advisory works extensively in the healthcare and life sciences sectors in Thailand, helping our clients navigate the complex political, regulatory, and reputational risks of the Southeast Asian market. From deep-dive due diligence on local partners to supply chain analysis, we gather and evaluate the intelligence underpinning sound commercial investments across the region.