North Korea, one of the world's most reclusive states, plans to branch out into medical tourism next year, offering foreign visitors, most likely from China, treatments including cataract surgery, dental implants and therapy for tumours.

The ruling party's Rodong Sinmun newspaper reported on Friday the recent launch of the Treatment Tourism Exchange Corporation, aimed at capitalising on the “rising demand for tourism, including medical care, in line with an international trend”.

The new state entity will operate health clinics near hot springs, whose mineral waters, it said, can help treat neuralgia, arthritis, and heart and skin ailments.

Private tourism is one of the few remaining areas of business not blocked by sanctions imposed on North Korea over its nuclear and missile programmes.

As many as 350,000 Chinese tourists have visited North Korea this year, potentially netting the authorities up to $175m (£133m), according to some analysts.

North Korea's pervasive leaders: the Kim portraits Show all 16 1 /16 North Korea's pervasive leaders: the Kim portraits North Korea's pervasive leaders: the Kim portraits In the Democratic People's Republic of North Korea, portraits of former supreme leaders Kim Il Sung and Kim Jong Il are required by law to be hung in the home, the classroom, the factory and all manner of other private and public places Reuters North Korea's pervasive leaders: the Kim portraits In the classroom AFP/Getty North Korea's pervasive leaders: the Kim portraits In the living room AFP/Getty North Korea's pervasive leaders: the Kim portraits In the maternity ward of the hospital Alamy North Korea's pervasive leaders: the Kim portraits On board the ship Reuters North Korea's pervasive leaders: the Kim portraits At the ballot box Mannen av börd North Korea's pervasive leaders: the Kim portraits In the office AFP/Getty North Korea's pervasive leaders: the Kim portraits On the bridegroom Reuters North Korea's pervasive leaders: the Kim portraits On the Pyongyang subway Reuters North Korea's pervasive leaders: the Kim portraits On a government building Reuters North Korea's pervasive leaders: the Kim portraits In the teacher training facility AFP/Getty North Korea's pervasive leaders: the Kim portraits In Kim Il Sung square in Pyongyang Reuters North Korea's pervasive leaders: the Kim portraits In the home AFP/Getty North Korea's pervasive leaders: the Kim portraits At the military parade Reuters North Korea's pervasive leaders: the Kim portraits In the hall Reuters North Korea's pervasive leaders: the Kim portraits At the Chinese border AFP/Getty

Last month, North Korean leader Kim Jong-un visited a hot spring resort nearing completion in the central alpine town of Yangdok, one of major construction projects at the heart of his drive to build a “self-reliant” economy.

Yang Moo-jin, a professor at the University of North Korean studies in Seoul, described the medical tourism campaign as propaganda designed at showing progress, while adding that it could appeal to some Chinese tourists.

“North Korea primarily offers natural tourist attractions and appears to believe they can be a money maker if combined with elements of oriental medicine, which many Chinese people like,” he said.

A recent report by a government-affiliated health institute in neighbouring South Korea said North Korea was struggling to provide basic health care.

“The reality is that primary-care providers, local clinics and doctors are so short of basic equipment and supplies that they barely provide what may be called medical consultation,” it concluded in the report on the state of the health sector in the North.

“The situation is not much better for secondary-care providers including state hospitals in cities and counties,” it said.