Erasing Borders: Countries Bet on Indian Travellers for Post-Pandemic Recovery

Kenya and Iran have recently made significant strides in their visa policies, welcoming travellers from various countries, including India, without the need for a visa. President William Ruto of Kenya announced a bold initiative to eliminate visa requirements for foreign visitors starting in January 2024. 

This move aims to streamline the process by introducing electronic travel authorization, a step hailed as a progressive approach to fostering tourism and bolstering international relations. Kenya, renowned for its diverse landscapes and vibrant culture, sees this policy change as pivotal to its tourism-driven economy. The government anticipates a surge in foreign tourists with the removal of visa barriers, leveraging a newly established digital platform for seamless admissions.

Similarly, Iran has taken an affirmative step by waiving visa requirements for travellers from 33 countries, including India. This strategic move aligns with Iran's objective to attract a higher influx of tourists globally. By facilitating easier access, Iran aims to enhance its tourism sector and allure visitors from diverse corners of the world. 

Both Kenya and Iran's decisions to eliminate visa requirements demonstrate a concerted effort to bolster tourism and foster stronger ties with countries like India. These progressive policies not only simplify travel logistics but also signify a promising era of enhanced international cooperation and tourism growth.

But why are so many countries recently offering visa-free travel on Indian passports? Let’s take a look.

Why are Countries Offering Visa-Free Travel to Indians?

Countries offering visa-free entry to Indian passport holders are motivated by several factors. Firstly, these initiatives often stem from a desire to stimulate their economies, particularly those heavily reliant on tourism like Malaysia and Kenya. The pandemic severely curtailed travel from 2020 to 2022, prompting nations to seek innovative ways to revitalize their tourism sectors. 

Allowing visa-free entry to Indian travellers presents an opportunity for these countries to attract a significant market of enthusiastic tourists, especially given the substantial spending power of Indian travellers.

India's rising position on the global Passport Index serves as an indicator of this increased travel freedom. As of now, Indian passport holders can access visa-free travel to 26 countries and visa-on-arrival to 49, but they require visas for 123 countries. The recent announcements of countries lifting visa requirements for Indian travellers are likely to boost India's standing on this index, enhancing the passport's strength in terms of global mobility.

Furthermore, projections from reports like "How India Travels" created by Booking.com and McKinsey & Company indicate a staggering increase in travel expenditure by Indian citizens. The report suggests that Indians spent a total of $150 billion on domestic and international travel, making Indians the sixth largest spender in the world. 25 per cent expenditure of this was on foreign travel. This uptick in spending is driven by a burgeoning middle-income population in India, with estimates pointing to significant growth in households with higher disposable incomes by 2030.

Additionally, Southeast Asian countries offering visa-free access to Indian passport holders might see this as an opportunity to tap into a market that faces challenges obtaining visas for regions like Schengen countries or the US. By easing entry requirements, these countries position themselves as accessible and attractive destinations, potentially diverting travellers who might have faced difficulties securing visas for other popular destinations.

In essence, the decision to grant visa-free entry to Indian travellers aligns with both economic and strategic goals for these countries, capitalizing on India's growing economic strength and the potential of its expanding middle-income population as avid travellers.

 India's Rising International Tourist Numbers

India's travel landscape is experiencing a robust resurgence post-pandemic, as indicated by recent reports such as McKinsey & Company's 'From India to the World: Unleashing the Potential of India’s Tourists.' The report not only highlights a strong recovery in domestic travel but also underscores a burgeoning inclination towards international voyages among Indian travellers. 

Last year, over 20 million Indians ventured abroad, marking tourism as the third most significant reason for their travels, according to data from the tourism ministry cited by Mint.

The appetite for international exploration among Indian citizens continues to grow significantly. The first four months of 2023 witnessed nearly 8.5 million Indians embarking on foreign trips, indicating a steady increase. In 2022, Indians undertook a staggering 13 million outbound trips. 

McKinsey's projections, drawing parallels with China's outbound travel trajectory due to similar population sizes and per capita income trends, suggest a potential surge to 80 to 90 million annual trips by Indian tourists by 2040.

What's notably striking is India's swift recovery in its foreign travel market compared to many other Asian nations. McKinsey's report reveals that India has already recouped 61 per cent of its pre-pandemic market, showcasing a remarkable rebound in outbound travel. 

The move by countries to offer visa-free entry to Indian passport holders serves dual purposes. Primarily, it aims to rejuvenate economies, particularly those reliant on tourism, by tapping into India's strong spending power and avid travellers. This gesture aligns with India's rising position on the global Passport Index, enhancing travel freedom and potentially boosting tourism partnerships.

Reports foresee a significant surge in travel spending by Indians, fueled by a growing middle-income demographic. Additionally, Southeast Asian nations easing entry requirements position themselves as accessible alternatives, catering to travellers facing visa complexities elsewhere. This convergence of economic and strategic motives highlights the pivotal role of India's expanding middle-class travellers in reshaping global tourism dynamics.