Travel industry caught in the crossfire of India-Canada row, worry over long-term impact

India-Canada tensions are at an all-time high

The escalating diplomatic tensions between India and Canada, and its impact on travel plans and visa application  is worrying the Indian tourism industry.

The ongoing issue between the two nations is going to affect tourism a lot, said Jyoti Mayal, President, Travel Agents Association of India (TAAI) and Board Member, FAITH (Federation of Associations in Indian Tourism & Hospitality).

"There are a lot of bookings that are already done (for travel between India and Canada). People are going to become anxious about the entire situation because they have all planned the trips. There will be a lot of cancellations coming through. I think there's going to be a lot of uncertainty in the coming days for travellers," she said.

Also read: Canada visa services suspended: India freezes visa services indefinitely amid escalating tensions

Travel agent Sanjay Dang, Managing Director of Le Travelworld, pointed out that if there is a reciprocal move by the Canadian government in terms of visa then that will be a concern.

Visa services for Canadian nationals have been suspended indefinitely by the Indian government. BLS International, the company responsible for managing visa application centres in Canada, notified the stock exchanges that due to operational reasons, with effect from September 21, 2023, Indian visa services have been suspended till further notice.

"This move will impact NRIs (Non-Resident Indians) more. People come to India to visit their hometown and meet their families in India. Travel plans of this segment will be affected. Also, the suspension will affect India more," said Dang.

Canada is an important source market for India and now that number would be hit, said Rajiv Mehra, President, Indian Association of Tour Operators, (IATO). "This was going to be the first normal year since 2019 so, it would hurt us a lot as Canada is among the big four source markets, along with the US, UK, Germany," he added.

Also read: Indian Consulates facing security concerns in Canada, will review visa operations regularly: Govt

India, a key market

India is also a key market for Canada as the latter is highly popular among Indian students planning to study abroad. It has gained significant traction in recent years, said Saurabh Arora, CEO & Founder, University Living, a student housing marketplace.

"The deteriorating diplomatic ties between Canada and India could potentially impact the interests of Indian students studying in Canada. Concerns about visa prospects and a less welcoming atmosphere may lead some students to reconsider their options," he said.

He added that it's possible that some Indian students may explore alternative destinations for their plans to study abroad.

Also read: Could the escalating India-Canada relations derail expansion plans of airlines?

It will be important for Canada to reduce uncertainty around travel and visas as 25 percent of its economy depends on contributions from international students, said Gaurav Batra , CEO and Founder, Infinite Group, a company that offers study abroad solutions.

"A notable decline in international student numbers would have a substantial impact on Canada's economy. It is likely that the Canadian government will remain proactive in attracting and retaining international students by prioritising their safety," he added.

Batra pointed out that there are currently more than 13 lakh Indian students enrolled in 79 different countries and over 1.8 lakh of them have chosen Canada as their destination, according to data released by the Indian Ministry of External Affairs.

"Canada is the second most preferred country, only behind the United States, for Indian students. This preference for Canada has outstripped traditional favourites like the UK, Australia, UAE, New Zealand, and others. We have witnessed a remarkable surge in the number of students opting for Canada," he said.

Also read: Canada rejects India's travel advisory amid escalating diplomatic row; calls for calm

Minimal impact 

While there may be growing tensions between India and Canada, the impact of these issues on Indian students studying in Canada remains minimal, Batra noted. "Up to this point, there have been no reported issues from students studying in the country."

Mehra said that students are not seeing an impact of the increasing tensions between India and Canada in terms of travel as their sessions have already started.

"The ongoing period is not the time for vacation travel to Canada. So, in the current period it is only students and VRF (visiting relatives and friends travellers) that are travelling. For students, the admission process took place in April, May, June months so they have their visas and have already travelled to Canada," said Dang.

Also read: India issues warning to expats in Canada after murder accusation

He said that travel agents are not expecting any short-term impact on travel demand and visa applications. "I have a large segment of my customers travelling to Canada and we have had no cancellations or hesitation. But in the next 12-15 days, we will get to know whether visas are getting delayed or denied. If there are any negative comments from the Canadian government regarding visas then there will be an impact," Dang said.