China’s tropical island province of Hainan wants to become a leading medical tourism hub, aiming to attract more domestic tourists to use local healthcare services instead of seeking treatment abroad after South Korea announced plans to scrap tax rebates for foreigners undergoing cosmetic surgery. The popular tourist destination in southern China plans to draw more than 1.5 million domestic medical tourists annually by 2027, up from the current level of over 400,000, according to a local government document. Hainan has also pledged to reverse the outflow of overseas medical consumption. It aims to approve two to four real-world research pilot products for domestic market entry each year and introduce at least 40 international innovative drugs and medical devices annually.
In the first quarter of 2025, institutions in Hainan’s special medical tourism zone welcomed 111,500 visitors seeking treatment, up 29.8% year-on-year. The use of licensed drugs and medical devices reached 16,000 people during the same period, a 44.14% rise from a year earlier. The push came as South Korea – a top competitor in medical tourism – risks losing its appeal due to a policy change announced on July 31. The new regulation, which takes effect next year, will remove value-added tax (VAT) refunds for foreign tourists using medical beauty services. To support the growth of a more comprehensive ecosystem, the Boao Lecheng Medical Tourism Development Conference proposed new medical tourism routes and called for greater integration across the “healthcare + conventions + tourism + wellness” chain.
The Boao Lecheng International Medical Tourism Pilot Zone – established in 2013 with special permission to import certain overseas medicines and medical devices not yet available domestically – received 413,700 medical tourists in 2024, a 36.76% increase from the previous year, the State Council said last month. Hainan, designated as China’s largest free trade pilot zone, will also adopt a new customs regime on December 18 that will support the introduction of foreign hospitals and pharmaceuticals, enhancing services for international tourists.
Still, many Chinese nationals continue to seek treatment abroad. A Deloitte report published last month projected that the number of people traveling overseas for medical aesthetic services in 2025 would rise by 9% to 26%, compared to the previous year. South Korea remains the top destination, accounting for 62% of China’s outbound medical beauty market, the South China Morning Post reports.
