Date : 4/12/2023

Relevance: GS Paper 3 – Indian Economy ( Also Relevant for GS Paper 2 – International Relations)

Keywords: Visa-Free Facility, Illegal Immigration, Swadesh Darshan, PRASHAD

Context-

In recent years, the dynamics of international tourism have witnessed significant shifts, with countries strategically employing visa policies to attract tourists. One noteworthy development is Malaysia's decision to extend visa-free travel to Indian citizens until December 31, 2024, for a period of 30 days from the date of entry. This move reflects Malaysia's commitment to revitalize its tourism sector, especially after the challenges posed by the COVID-19 pandemic. Malaysia joins a list of countries, including Sri Lanka and Thailand, in extending such privileges to Indian travelers.

Malaysia's Strategic Move:

• Malaysia's decision to offer visa-free entry to Indian citizens carries implications beyond mere convenience for travelers.
• With tourism emerging as a focal point for Malaysia's post-COVID recovery, this initiative seeks to position the country as an attractive destination.
• Renowned for its scenic locales like the Langkawi beaches, Malaysia aims to regain its leadership in the tourism sector.
• In 2022, the country witnessed a significant recovery, with 10.7 million visitors contributing over $28 billion to the economy.
• This contrasts sharply with the meager 0.13 million tourists during the peak of the COVID-19 pandemic in 2021.
• By extending visa-free access to Indian and Chinese tourists, Malaysia aims to capitalize on the appeal to two major Asian economies.

Visa-Free Trends Globally:

• Beyond Malaysia, several countries worldwide extend visa-free travel privileges to Indian citizens for various reasons.
• Sri Lanka and Thailand, both regional tourism hotspots, are among the nearby economies that have adopted similar policies.
• Sri Lanka, facing economic challenges in 2022, seeks to position itself as an attractive destination, with its visa-free policy driven by economic and political considerations.

Categories of Visa Exemption:

• India maintains visa exemption agreements with numerous countries globally, covering multiple categories of visas.
• For diplomatic passport holders, agreements exist with 34 countries, including Germany, France, Iran, Japan, Norway, and Turkey. Additionally, operational agreements for "diplomatic, service/official passport holders" are in place with at least 99 countries.
• The Ministry of External Affairs notes that 16 countries currently offer visa-free travel for a specified period to ordinary Indian passport holders, including Nepal, Bhutan, and Fiji.
• However, this list is subject to change as countries continuously adjust their visa policies. According to the Passport Index website, the present count is at least 26 countries providing visa-free access to ordinary Indian passport holders.

Visa-Free Facility: Not Always Permanent:

• While countries extend visa-free facilities to Indian tourists, the duration of such privileges varies, often contingent on factors advantageous to the host country.
• In the case of Malaysia, the visa-free scheme is valid until December 31, 2024, subject to security clearance.
• It's essential to note that the provision of visa-free entry doesn't imply a relaxation of security protocols at entry points. Instances, such as in Dominica and El Salvador, where visa-free entry is granted, highlight the importance of stringent checks at airports to prevent illegal immigration.

Security Considerations and Withdrawal of Privileges:

• Countries offering visa-free travel remain vigilant about security concerns.
• For instance, Dominica and El Salvador conduct strict checks to thwart illegal immigration to the Americas.
• Reports from places like Guatemala suggest that while initially extending visa-free travel to Indians, concerns about undocumented immigration led to the withdrawal of this privilege.
• Security considerations, therefore, play a pivotal role in determining the sustainability of visa-free facilities.

Beyond Visa-Free Travel: Attracting Indian Tourists:

• Countries worldwide employ various strategies beyond visa-free travel to attract Indian tourists.
• Singapore, Egypt, and Albania, for instance, provide e-visa facilities, streamlining the application process, especially for countries without formal diplomatic missions in India.
• Tourism's critical role in national economies has led many nations to remove logistical hassles, such as visas, to encourage travel.

Importance of the Tourism Sector in India:

The tourism sector in India plays a pivotal role, recognizing the historical and cultural significance of sites and facilitating their protection and preservation. Beyond cultural preservation, tourism acts as a catalyst for regional development, injecting substantial funds into local economies. This not only fosters inclusive growth but also promotes social equality in areas lacking growth-promoting industries.

On a global scale, tourism raises awareness of a region and sheds light on its socio-economic issues. The industry's expansion also stimulates the service sector, benefiting a multitude of companies. The growth of tourism acts as a driving force for overall development, necessitating infrastructure development, evident in initiatives like the mobile tourism caravans in Uttarakhand.

Furthermore, tourism contributes to the support of various sectors, including railroad, aviation, real estate, and the service industry. It offers opportunities for foreign investment, benefiting small companies in tourist areas. Job creation is another notable impact, with employment opportunities emerging in tour operations and the hospitality industry.

Beyond economic contributions, tourism enhances India's soft power, fostering connections with other nations. It becomes a vehicle for global fundraising efforts, especially for the protection and repair of monuments and areas. Additionally, tourism enables the promotion of India's biodiversity and wildlife, drawing attention to conservation efforts on a global scale.

Challenges of the Tourism Sector:

Despite its significance, the tourism sector faces several challenges. Dependency on specific seasons leads to revenue gaps for many regions throughout the year. Exchange rate volatility, lack of international credit card acceptance, and high taxes contribute to India's reputation as an expensive destination.

Skilled professionals, English-speaking guides, and basic conveniences in tourist locations are insufficient. Natural disasters like landslides and cloudbursts pose risks, exemplified by the 2013 Kedarnath Cloud Burst. Wildlife tourism strains vulnerable species and increases the risk of forest fires, while indiscriminate garbage dumping harms the environment.

Visa requirements, paperwork, and delays in traveler processing add to the sector's challenges. Unequal distribution of tourists across states indicates a need for more promotion in certain regions. Despite favorable rankings, India's 34th position in overall tourist competitiveness suggests underutilization and inadequate marketing of the industry.

Government Initiatives:

The government has undertaken initiatives to address challenges and promote tourism growth. The Swadesh Darshan Scheme supports state governments in developing infrastructure for theme-based circuits. A recent budget allocation of Rs. 1,200 crores for the Northeastern states under Swadesh Darshan aims at creating tourist circuits.

Schemes like Swadesh Darshan and PRASHAD focus on specialized tourism markets, including wildlife, adventure, wellness, and religious travel. The Swachh Bharat movement emphasizes cleanliness around national historic monuments. The All India Permit Rules 2021 streamline tourist vehicle operations, and the "Dekho Apna Desh" webinar series markets India as an adventure tourism destination.

While challenges persist, government initiatives underscore a commitment to fostering tourism's positive impacts and addressing associated concerns for sustainable and inclusive growth.

Conclusion

The global landscape of visa policies is dynamic, with countries strategically leveraging these regulations to boost tourism. Malaysia's decision to offer visa-free travel to Indian citizens reflects a broader trend where nations seek to recover and strengthen their tourism sectors. While such initiatives provide convenience for travelers, security considerations and geopolitical factors also influence the sustainability of these privileges. As India's passport strength increases and international travel becomes more accessible, the dynamics of visa policies will continue to evolve. The nexus between tourism and visa policies remains a crucial aspect of diplomatic relations, economic revival, and the overall global travel landscape. In conclusion, the future of visa-free travel and the broader strategies employed by nations to woo Indian tourists will be shaped by a delicate balance between convenience, security, and economic considerations.

Source- The Hindu