Hospitals Prepare for Potential Disruption in International Travel Amid US-Iran Tensions

India's Medical Tourism Sector Faces Headwinds Amid West Asia Conflict

Impact on Growth: India's medical tourism sector, which has experienced 20% compound annual growth over the past decade, is facing sharp operational headwinds due to the escalating war in West Asia. The industry is projected to reach $13 billion by year-end.

Disruptions and Consequences: Flight cancellations and rerouting have led to a 15-25% increase in airfares and significantly longer travel times, which can be detrimental to critically ill patients. This has resulted in a significant decline in patients from West Asia, a major source market and primary aviation corridor connecting Africa, Central Asia, and Europe to India.

Regional Breakdown: In 2025, over 4.5 lakh foreign tourists visited India for medical purposes, with West Asia and Africa accounting for a substantial share. Patients from Oman, Iraq, and Yemen comprised a large portion of international patients seeking medical care in cities such as Chennai, Delhi, and Mumbai for ailments like heart diseases and cancer.

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Impact on Hospital Chains: Major hospital chains, including Artemis Hospitals, Fortis Healthcare, and Apollo Hospitals, are bracing for a "soft" quarter due to the decline in international patients. International patients contribute between 7.7-22% to their revenue, with Artemis Hospitals generating 25-30% of its revenue from international patients.

Industry Analysis: Life-saving surgeries like cardiac bypasses are proceeding out of necessity, but elective procedures are being postponed. Wealthier patients are opting for Southeast Asian competitors or tele-consultation due to the uncertainty of traveling to India.

Recovery Outlook: Industry analysts suggest that international patients will return once the conflict ends, as was the case after the Covid pandemic and the end of the Afghanistan war. Artemis Hospitals' managing director, Dr. Devlina Chakravarty, estimates an 8-10% impact on international patient revenue due to the ongoing disruption.