Why Indians are losing a lot of money due to visa rejections

Rejection rates for visitor visas have surged in the post-pandemic period in the UK, Australia, New Zealand and countries in the Schengen area. (Image: Pixabay)
Rejection rates for visitor visas have surged in the post-pandemic period in the UK, Australia, New Zealand and countries in the Schengen area. (Image: Pixabay)

Summary

A Mint analysis of visa applications data released by several developed countries, which are considered aspirational travel destinations, paints a sobering picture for Indians, with an increase in visa rejection rates.

Last month, at the peak of India’s year-end holiday season, social media was abuzz with news of many Indian travellers facing visa rejections by the UAE. Several Indians shared their travails in securing visas to a country largely perceived as friendly to travellers. Seen among the favourites, the UAE was the destination for one in four (24.8%) outbound Indians between January and October last year.

However, what Indians are experiencing with the UAE has been long experienced with several other aspirational countries. A Mint analysis of visa application data released by several developed countries, which are considered aspirational travel destinations, paints a sobering picture for Indians. Rejection rates for visitor visas have surged in the post-pandemic period in the UK, Australia, New Zealand and countries in the Schengen area. Indians have also cumulatively incurred substantial financial losses, with approximately 664 crore lost in the past year on account of refusals from these destinations.

For every 100 applications submitted, around 33 in New Zealand, 30 in Australia, 16 in the US, and 17 in the UK were rejected in the latest 12-month period for which data was collected. The rejection rate was 16% in the Schengen area nations in 2023. Compared with the refusal rates in 2019, New Zealand and Australia lead the list with a 20-percentage-point (pp) and 14-pp rise in rejection rate, followed by the UK (6 pp) and the European Union (5 pp). Only the US has seen a drop in rejection rates, by 11 pp.

Also Read: A complete guide to digital visas: Streamline your international travel

Burnt pockets

The rejection of visa applications by several countries can put pressure on people’s wallets, as they lose money on trips that never happen. In many cases, the non-refundable nature of visa application fees compounds the financial burden on applicants.

Among the countries analysed, financial losses incurred by visa applicants are the highest in the case of the US ( 271 crore), even as it has opened more visa appointment slots across its consulates in India to clear the backlog. Nonetheless, the waiting time to obtain interview slots has been a persistent issue for Indians even as the US claims it is making efforts to ease the process. The estimated losses in the case of Australia, Schengen area countries, and the UK amounted to 123 crore, 122 crore, and 116 crore, respectively. 

 

There are various reasons for the rise in visa rejections: from strained visa processing systems as applications surpass pre-covid levels to insufficient proof of financial means for travel expenses. Tighter visa regulations have also come against the backdrop of rising anti-immigration sentiment around the world. Several countries have implemented stricter immigration checks and policies for tourist visas, which they say are “misused", with travellers entering, then overstaying and attempting to secure work.

For instance, last year, the UAE mandated that their visitors carry proof of at least AED 5,000 in their bank account, a return ticket and accommodation proof. Similarly, Canada, in November 2024, suspended granting 10-year multiple-entry tourist visas. Even Bali, a popular foreign tourist hub for Indians, introduced rules, including a jail term for those who violate tourist visa conditions. 

Also Read: Canada was dream destination for Indian students. Something has changed.

Countries including the UK (October 2023), European Union (June 2024) and New Zealand have hiked tourist visa fees sharply in the past year. Meanwhile, the sharp depreciation in the rupee against the dollar has also increased the travel cost.

Travel abound

India's outbound tourism industry started booming after the covid-19 pandemic, with several new destinations emerging as top attractions, fuelled by an aspirational middle-class and the social media nudge. Between January and October 2024, around 25 million Indians travelled abroad, with holidays/vacations being the second biggest reason for doing so, according to the tourism ministry data. This is an 8.5% rise compared to the same period in 2023 and 12% increase vis-à-vis 2019. The final 2024 figures could touch a new high, with the 10-month figure already hitting 92% of the previous year’s full-year number, without including the peak tourist season in November to December.

 

More and more Indians are also travelling abroad as travel-related loans have become easily available. A survey by Paisabazaar of 4,000 respondents from 105 cities and towns between January 2023 and June 2023 showed that 21% of those who availed a personal loan on their platform did so for travel purposes.

While traditional aspirational countries remain popular despite the visa rejections, several countries are attracting more Indians with fewer visa-related hassles and cheaper travel due to their weaker currencies. Countries such as Thailand, Vietnam, Sri Lanka, Malaysia, and the Philippines are often considered for holidays now. These countries saw a year-on-year growth of 25-50% in the number of Indian visitors in 2024 (based on latest available data), according to the official data from each of these countries analysed byMint. The number of Indian visitors to Malaysia grew by 50%, Thailand by 31%, Vietnam by 28%, and Sri Lanka by 24%.

 

As developed countries introduce protectionist measures, budget-friendly destinations will continue to rise in popularity. The Indian passport needs to get stronger to wade through the scenario, whose global ranking slipped from 80th to 85th in 2025 on the Henley Passport Index.

Also Read | Passport power: Why having visa friends is vital for business

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