Will a 12% fee hike in Schengen Visa impact travel patterns globally?

Starting June 11, travellers to Schengen States have started to face higher visa fees as the European Commission implements a 12% increase on short-stay Schengen visas, affecting travelers globally. The fee for adults rises from 80 euros to 90 euros, while children aged 6 to 12 will now pay 45 euros, up from 40 euros. Children under 6 remain exempt.

Speaking to Business Today, Mohak Nahta, founder and CEO of Atlys, commented on the implications of this fee hike: "While there was a price hike of 12% from 80 Euros to 90 Euros - the hike amount of 10 Euros is not significant enough to deter interested travellers from making the travel decision."

He pointed out that for most travellers, the cost of a trip to the Schengen area far exceeds the incremental visa fee increase. "A trip to Schengen overall will cost north of 2000 Euros. So in the grand scheme of things, the incremental cost is very marginal."

He further emphasised instead of a fee hike, other factors have a more substantial impact on travel decisions and destinations than visa fees. "What does affect the travel destination choice and has continued to plague travellers looking to visit Schengen are the high refusal rates, with often arbitrary and ambiguous reasons for rejection, and the lack of visa appointments making it very challenging for travellers to secure visas within their desired timelines."

Regarding recent reforms, Nahta noted some positive changes: "The new cascade system introduced by Schengen is a step in the right direction. The cascade system will make it possible for travelers to apply for visas less frequently and therefore make the process much cheaper and less arduous in the longer run for frequent travelers."

He however, pointed out that there will not be a decline in tourist numbers applying to visit the Schengen region.

The European Commission justified the fee hike citing inflation and rising civil worker wages, following a review mandated by the Schengen Visa Code every three years. The previous increase in visa fees occurred in February 2020, when fees rose from 60 euros to 80 euros.