Growth – the significance and value of Contemporary Health Tourism

…and the role of “trust in the future”, “credit”, an “ever-growing pie” and “progress”

the story which goes with it

…with due attribution to Yuval Noah Harari - the historian and “million copy bestseller”

In the chapter titled “The Capitalist Creed” (in his book “Sapiens”), Yuval Noah Harari tells the reader: …to understand modern economic history, you really need to understand just a single word. The word is "growth".

Yuval also refers to the role of “trust in the future”, “credit”, the size of the “pie” and “progress”.

It occurred to me that the same can be said about understanding Contemporary Health Tourism.

In fact, Yuval could have, just as easily, have been talking about Contemporary Health Tourism.

To understand the significance and value of Contemporary Health Tourism (a.k.a. Internet Century Health Tourism – ICHT – and represented by ht8), one really needs to understand just a single word. The word is Growth.

And to be a little more specific, the organic type of Growth – as in Organic Economic Growth.

ICHT was designed to bring about sustainable growth to the Industry (i.e., the Supply Side) – including growth (in terms of revenue) for enterprises (businesses).

Sustainable:

· able to continue over a period of time (Cambridge Dictionary)

· able to be maintained or continued (Cambridge Dictionary)

· able to be maintained or kept going, as an action or process (DICTIONARY.COM)

· able to be maintained at a certain rate or level (Lexico.com)        

Under the Conventional Health Tourism regime, the Industry had exhausted its repertoire and served its purpose - and growth had stalled.

As I also point out elsewhere, Conventional Health Tourism seems to have been “modelled” (if it was modelled, at all) on the premodern economy – where growth is small and limited.

By the way, “Growth” has been designated as one of the Strategic Concepts and Practices.

buying into Contemporary Health Tourism

…adopting and implementing the Concept and Practice

Health Tourism activity will grow, thanks to “trust in the future” inspired by the introduction of Contemporary Health Tourism – which in turn, inspires confidence in investors and operators to “buy into” the concept and practice - and invest their profits in “growing the business”.

“buying into” is about adopting and implementing a concept and practice.

the urge to develop and introduce Contemporary Health Tourism

…the clear-headed realization that it would lead to “growth”

My urge to develop and introduce ICHT was not driven by obsession, fixation, compulsion or “missionary fervor”.

It was the pressing need to address the shortcomings (Fallacies, Deficiencies and Failings) associated with Conventional Health Tourism.

But above all else, it was the clear-headed realization that it would lead to “growth”, all the way down to the enterprise (business) level.

the objectives and key results achieved as a result of Transformation

…from Conventional to Contemporary

To be brief and to the point, Transformation (from Conventional to Contemporary) achieved the following objectives and key results:

• repurposed the Concept & Practice and Activity (from a “need” to a “want”)
• expanded the Industry so that this could address a broader Market – meaning more business for all
• rescued Health Tourism from stagnation and put it on the path to growth
• increased the size of the pie – and provided the preconditions for continued increase in its size

increasing the size of the Pie

…and ensuring its continued growth

Thanks to ICHT, the size of the Health Tourism Pie will grow because ICHT is “additive” (adds to the existing) rather than “substitutive” (replacing one with another). Its success does not rely on the “beggaring thy neighbor” strategy.

Furthermore, as has been demonstrated, ICHT is the result of (planned) evolution rather than revolution – and as such, does not negate Conventional Health Tourism, but rather, supplements and complements it.

ICHT – represented by ht8 - replaced the Short Tail with the Long Tail approach to shaping Market Boundaries and Industry Structure (more choice increases demand and consumption). ht8 enables the Industry to address a broader Market.

ICHT repurposed the concept & practice and activity (from a “need” to be endured, to a “want” to be enjoyed – as an attractive lifestyle choice – for all - the youngerly, the elderly and the in-between).

ICHT is part of the modern economy, which embraces “progress” - which in turn, enables innovations to increase the sum total.

New services can be created - and consumed - without reducing the demand and consumption of the existing ones.

People develop additional new tastes – and consume more.

This is how the pie will grow.

Progress

…responsible for persuading people to, confidently, put more trust in the future

ICHT represents - and is an example of - “progress”.

Progress (which is associated with the “scientific revolution”) is what convinces people to, confidently, put more trust in the future.

Progress relies on the admission that “we do not know”.

In the past, progress was held back by those, with influence, who claimed to know all.

There may be nothing new under the sun, but there is much we do not know.

Early “map makers” filled in every bit of space of a map with “information” (most of which was imaginary – but which implied “knowledge”).

It was only when, later on, map makers started including blank spaces (implying absence of knowledge) that exploration - and the quest for discovery – took off.

“not knowing” is a challenge (with good prospects for a “pay off”) for investors to invest in “research” (i.e., finding out).

With ICHT, I did not start out by wanting to “teach” but by wanting to “know”.

the Virtuous Cycle

…trust creates credit, and credit brings bout economic growth

As Harari pointed out in Sapiens, trust creates credit, and credit brings about economic growth – and growth strengthens the trust in the future and opens the way for more credit.

Credit is the difference between the size of today’s pie and the size of tomorrow’s pie.

the rational thing to do with Profits

…reinvesting to increase growth

In the modern economy, the rational thing to do with profits is to reinvest them in “production” (growth).

This brings about more profits, which are again reinvested.

The profits of production must be reinvested to increase production (growth).

nothing happens without Investment

…and the role of “trust in the future”, “credit”, an “ever-growing pie” – and Punt Strategy

When responding the question what now made the time right to embark on the initiative to transform Health Tourism, one of the answers was: "under the Conventional Health Tourism regime, the Industry had exhausted its repertoire and served its purpose - and growth had stalled.

Conventional Health Tourism seems to have been “modelled” (if it was modelled, at all) on the premodern economy – where growth is small and limited.

Consequently, after the initial, hype-fueled surge, there was little “trust in the future”.

When there is little trust in the future, investors have little appetite to invest.

Under the Conventional Health Tourism regime, the rational belief - and reality - was that the total value of the market (the Demand Side) was limited – and had in fact (by circa 2017) reached its limit.

Consequently, Health Tourism Business looked like a zero-sum game. Profits of one particular business might rise, but only at the expense of a competing business.

If the global Health Tourism pie stayed the same, there was no margin for credit.

As already pointed out, Credit is the difference between the size of today’s pie and the size of tomorrow’s pie.

If the pie stays the same, why extend credit?

Which is why during the Conventional Health Tourism “era”, investment was so elusive – with the exception of a few high-profile - hype-driven - “businesses” (the “outliers” – in which, investment, in anyway, turned out to be a bad investment). These businesses went out of business, changed their business or else are now, businesses in name only.

Growth:
 · increase in economic activity (Lexico.com)
 · an increase in the ability of an economy or business to produce goods and services (Cambridge Dictionary)
 · an increase in the production of economic goods and services, compared from one period of time to another (Investopedia)

Trust:
· to have confidence in something (Cambridge Dictionary)
· to believe that something is safe and reliable (Cambridge Dictionary)
· reliance on the integrity, strength, ability, surety, etc., of a person or thing (DICTIONARY.COM)
· confidence (DICTIONARY.COM)
· firm belief in the reliability, truth, or ability of someone or something (Lexico.com)
· complete confidence in a person or plan etc. (vocabulary.com)
· have confidence or faith in (vocabulary.com)        

By the way, ICHT includes Punt Strategy – whose purpose is to connect the Investor with the Investee – and ensure that Investment “happens”.

placing the decision-makers (leaders) and purse-string-holders (investors) at the epicenter

…the Vital Few

In Health Tourism, growth is associated with the creation – or transformation – and then operating arcHTos Derivatives:

• Nation-Level Economic Sectors
• Marketplaces:

1. Destinations
2. Porterian Industry Clusters
3. Special Economic Zones (areas with particular economic advantages)
4. Resorts

• Assisted Residential Tourism Facilities (technology-enabled Housing and Care abroad)
• Enterprises (Businesses)
• Services:

1. Health-related (in the context of ht8)
2. Travel & Tourism related (aiming to address the Health Tourist)
3. Sector-supporting

• Events (the “Conferences, Exhibitions and B2B Meetings” combos)
• Representative Bodies (Associations, Councils and Chambers of Commerce)

Furthermore, it should be obvious that those who can bring about “growth” are the decision-makers (leaders) and purse-string-holders (investors) – a.k.a. the Vital Few.

It was with this in mind that the Vital Few were placed at the epicenter of the ICHT “order of things”.

understanding “Growth”

…the organic (internal) and inorganic (external) types

In practical terms - and as far as the “industry” is concerned – the term “growth” brings to mind things at the enterprise (business) level.

So, I focus, here, on “Business Growth”.

And as far as I am concerned, “real growth” is that which comes from a company's (enterprise’s) existing businesses, as opposed to growth that comes from buying new businesses. This is known as organic (or internal) growth.

Organic Business Growth

Organic business growth is growth that comes from a company's (enterprise’s) existing businesses, as opposed to growth that comes from buying new businesses.

Organic business growth is related to increased output, customer base expansion or new product development (as opposed to mergers and acquisitions, which is inorganic growth).

When companies report organic growth, this means they have boosted their size, revenue or market penetration - by growing their own businesses and developing new ones.

Organic (or internal) growth involves expansion from within a business, for example by expanding the product range, or number of business units and location.

Organic growth builds on the business’ own capabilities and resources. For most businesses, this is the only expansion method used.

Organic growth comes from expanding output and internal activities that increase revenue.

In the case of Services Provision in the context of Health Tourism, organic growth involves strategies such as:

• developing and offering a new range of services
• launching existing services into new markets
• opening new business locations
• investing in “know how” or consulting services – aimed at increasing sales volumes

Businesses which sell products, also implement organic growth strategies to improve “services provision” – with some successful examples being Dominos UK, Apple and Costa Coffee.

Benefits and Drawbacks of Organic Growth

Benefits:

• less risk than external growth (e.g., takeovers)
• can be financed through internal funds (e.g., retained profits)
• builds on a business’ strengths (e.g., brand, customers)
• allows the business to grow at a more sensible rate

Drawbacks:

• growth achieved may be dependent on the growth of the overall market
• hard to build market share if business is already a leader
• slow growth – shareholders may prefer more rapid growth
• franchises (if used) can be hard to manage effectively

Inorganic Business Growth

Inorganic growth comes through the acquisition of - or merging with - other companies and joint ventures.