Spurned by Schengen, Indians are being swayed by the lure of liberal visas

“South Korea is seeing a big rise in travel demand from discerning travellers. We were never catering for travel to this country till last year," said Khanijo, also explaining why the visa process is a boon for last-minute planners. “There is no appointment procedure and clients can just submit their visas (online). Their visas take just seven working days to process, with low rejection rates."

Khanijo is also bundling in travel to Japan for one of her clients. 

As trying to obtain Schengen visas to travel to European countries such as Greece, Italy and Switzerland became exasperating, Indians turned to more familiar destinations such as Malaysia, Vietnam, Thailand and Sri Lanka that have easier processes.

Thailand set the ball rolling in November, when it eliminated visa requirements for Indian travellers and permitted a 30-day stay until May this year. Last week, it extended this scheme till November this year. 

Sri Lanka rolled out a similar scheme, offering visa-free access to Indians as well as nationals from six other countries till the end of May. Malaysia has declared visa-free entry for Indian and Chinese citizens till December.

“Surprisingly, many European nations that are in recession are putting visa restrictions instead of easing them up. Slowly Indian travellers are realising these issues and are opting to travel elsewhere," said  Subhash Goyal, chairman of STIC Travel, one of India’s largest travel agents.

The lure of liberal visas

The surge in outbound travel from India is emblematic of the country’s growing middle-class and the increase in their disposable incomes.

Outbound travel from India is projected to grow at a compound annual growth rate (CAGR) of 11.4% between 2023 and 2032 to $44.8 billion, according to a report titled ‘Outbound Tourism in India’ by business advisory Nangia Andersen Llp. In 2022, the market stood at $15.16 billion.

India’s outbound tourism sector, one of the fastest-growing in Asia, has recuperated to about 61% of its pre-pandemic strength, with 13 million outbound tourists recorded in 2022, according to a report by McKinsey & Co. The consultancy firm estimates this figure could expand to 80 million by 2040.

For this year’s summer, Thailand, Mauritius, Maldives, Malaysia, Nepal, Bhutan, Sri Lanka and Vietnam have collectively registered a 30-40% increase in travel bookings by Indians as compared with a year earlier, according to travel agency Yatra Online Ltd.

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Thailand and Sri Lanka have seen a 35% year-over-year increase in bookings for this year’s summer travel. Vietnam registered a 25% jump in bookings during April and May.

Bharatt Malik, senior vice president for flights and hotel business at Yatra Online, said Indian travellers are opting for destinations with simpler visa requirements and straightforward travel arrangements.

“A lot of the economies that have recently made visas free are dependent on tourism, and so have become very liberal with their visas, at least in the short run," said Goyal of STIC. “Indians, with their growing discretionary incomes, are now becoming more liberal spenders when travelling and shopping abroad."

The value-conscious traveller

MakeMyTrip registered a 33% year-on-year growth for bookings in April across newly minted visa-free destinations as well as countries allowing e-visas, such as Kazakhstan, Angola and Japan. 

Kazakhstan and Azerbaijan are two major draws for Indian travellers this summer, followed by Georgia, Langkawi, and Kuala Lumpur in Malaysia. Bhutan, Hong Kong, Sri Lanka, Thailand, and Kenya are among other favourites this summer, said a spokesperson for MakeMyTrip.

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Destinations in Thailand such as Bangkok, Phuket, Chiang Mai and Krabi remain a favourite, especially as the country has extended its no-visa scheme for Indians until November.

According to a spokesperson for travel agency Thomas Cook India, the elimination of the visa cost for Thailand, especially for an Indian family of four or ad hoc groups of friends or colleagues, is an important consideration for the value-conscious Indian.