Indian visa suspension drives tourists to other Asian destinations, raising airfares

The suspension of Indian visas has significantly impacted the airline and travel industry in Bangladesh and India. However, for Bangladesh it has unexpectedly boosted outbound tourism to other South Asian and Southeast Asian countries, such as the Maldives, Sri Lanka, Nepal, Thailand and Vietnam.

According to the Bangladesh Outbound Tour Operators Forum, as the peak season begins amid the Indian visa suspension, leisure tourism to these destinations has increased by 10% to 15%, leading to higher airfares. In some cases, such as Nepal and Sri Lanka, airfares have even doubled.

Despite this increased demand, airlines have stated that the rise in airfares is not directly caused by the visa suspension. They attribute the price fluctuations to the usual factors, such as supply and demand, and the timing of ticket purchases.

"On one hand, the tourist season has started. On the other hand, the closure of Indian visas has led to an increase in tourists using alternative routes. Many have also chosen Nepal as an alternative to India for obtaining a European visa," Chowdhury Hasanuzzman Rony, president of the Outbound Tour Operators Forum, told TBS.

He added that ticket prices have increased, saying, "A round-trip ticket to Nepal used to cost around Tk25,000-30,000, but now it has nearly doubled. Although passenger numbers have grown on other routes, the loss in business due to the suspension of Indian visas has not yet been fully recovered."

Nepal is the closest tourism destination for Bangladesh after India. Currently, two airlines operate flights from Dhaka to Nepal – Bangladesh Biman Airlines and Nepal's Himalayan Airlines. Both airlines offer daily flights from Bangladesh.

They report that their flights to Kathmandu are operating with over 80% occupancy, with most passengers being tourists. The rest are travelling to various Middle Eastern destinations via Kathmandu.

A tourist headed for Sri Lanka told TBS that a round-trip ticket is priced around Tk90,000, while the usual fare to Sri Lanka ranges from Tk42,000 to Tk53,000.

When TBS checked the price on Monday for a round-trip flight from Dhaka to Colombo for 19 November on ShareTrip, the fare was Tk1.12 lakh with SriLankan Airlines. In comparison, the price for a transit flight through Air India was Tk48,714 to Colombo.

India has long been the most popular destination for outbound tourists, accounting for 40%-45% of the total, due to cultural ties, proximity and easy visa access, according to the Tour Operators Association of Bangladesh (Toab).

However, the situation changed after 5 August, when India suspended visa issuance following the fall of Sheikh Hasina's government.

Although India has resumed issuing visas on a limited scale, the number of visas granted is still very low, leading to a shortage of passengers on Indian routes, according to airlines.

As a result, several Bangladeshi airlines have reduced or temporarily suspended flights to India due to the drop in passenger numbers.

Currently, Biman Bangladesh Airlines, US-Bangla Airlines and Novoair operate flights between Bangladesh and India on routes to Dhaka-Kolkata, Delhi, Chennai and Mumbai, along with India's Vistara Airlines, Air India and IndiGo. Novoair has suspended its Kolkata flights, while other airlines have cut their flights to India by one-third or half.

Mohsin Iqbal, proprietor of Amazing Tours, told TBS, "India used to make up 10% of our business, but since the closure of Indian visas, we haven't been able to recover that loss. However, with the arrival of winter, more tourists are travelling to other countries.

"Through our agency, we've seen an increase in tourists heading to Thailand. Other agencies are sending more tourists to places like Nepal, Sri Lanka and the Maldives."

He also mentioned that ticket prices have risen, saying, "It's now hard to find round-trip tickets to South Asian destinations for less than Tk60,000. Tickets to Bhutan are selling for Tk50,000."

"Popular destinations like Dubai, Singapore and Uzbekistan have made it harder to get tourist visas. It now takes a month to get a visa for Thailand," he added.

However, airlines have said that planned tourists will not face high airfares if they buy tickets in advance.

Kamrul Islam, general manager (Public Relations) of US-Bangla Airlines, told TBS, "Since the suspension of Indian visas, we've seen at least a 10% increase in passengers on our Maldives and Bangkok routes.

"If someone buys a ticket just one day before, he or she will pay a higher price. But those who plan ahead generally buy their tickets at least a month in advance."

Biman Bangladesh Airlines operates flights to several South Asian destinations, including Kathmandu, Bangkok, Malaysia and Singapore.

Boshra Islam, general manager of Biman Bangladesh Airlines, told TBS, "Except for India, we have enough passengers on routes like Kuala Lumpur, Singapore and Bangkok. However, we haven't raised flight fares suddenly; the prices fluctuate as they normally do."

According to Toab, Thailand, known for medical tourism, shopping and leisure, attracts 15%-20% of Bangladeshi travellers. Malaysia hosts 10%-15%, while Singapore receives 5%-10%.

The Middle East, including the UAE, Saudi Arabia and Oman, accounts for 10%-15% of Bangladesh's outbound tourism. Europe draws 5%-8% and other Asian countries, such as Nepal, Sri Lanka and China, attract 5%-8%.

On the other hand, North America and Australia each account for 2%-5% of Bangladeshi tourists.