Visa Facilitation: The Netherlands
Transcription
Visa Facilitation: The Netherlands
Visa Facilitation in the Netherlands The following analysis focuses on the entry visa requirements for temporary visitors to the Netherlands and the opportunities of visa facilitation. The report was prepared by the Secretariat upon request of the Netherlands Board of Tourism and Conventions (NBTC). Madrid, June 2014 World Tourism Organization (UNWTO) - A Specialized Agency of the United Nations Capitán Haya 42, 28020 Madrid, Spain. Tel.: (34) 91 567 81 00 / Fax: (34) 91 571 37 33 – [email protected] / unwto.org Acknowledgements For the preparation of this report, valuable input was received from a number of stakeholders. We wish to especially thank Marieke Politiek, Senior Market Researcher, Netherlands Board of Tourism and Conventions, Eddie Yang, Director China, Netherlands Board of Tourism and Conventions, Benno Leeser, President, Gassan Diamonds, Kees Noomen, General Director, Coster Diamonds, Ineke van der Genugten, Director Tourist Development and Partners, KLM and Anne - Marie Soerensen, DG Home Affairs, Unit C2-Visa, European Commission who provided valuable comments and made their time available for in - depth interviews. The report was prepared under the supervision of Dr. Dirk Glaesser, Director of Sustainable Development of Tourism Programme, UNWTO with contributions from Birka Valentin, Gordon Clark, Lorna Hartantyo, John Kester, Gaith Saqqa and Meagan Greenberg. 1 Table of Contents 1. Background and structure........................................................................................................... 3 2. The framework of the Netherlands ............................................................................................ 4 2.1. Current visa situation in the Schengen Area ............................................................................ 4 2.2. Schengen visa data ...................................................................................................................... 7 2.3. Dutch visa data............................................................................................................................ 10 2.4. Schengen visa reciprocity .......................................................................................................... 15 Box 1: Focus China and the Russian Federation .......................................................................... 16 3. Market trends ............................................................................................................................... 17 3.1. Visa regulations and travel behavior of the Chinese and Russian market ........................ 21 4. The economic impact of visa facilitation ............................................................................... 23 Box 2: The economic powerhouse of the 21st century .................................................................. 24 4.1. International tourism receipts in detail ..................................................................................... 25 Box 3: The impact of the diamond ................................................................................................... 29 4.2. Economic impacts in the European Union .............................................................................. 30 4.3. Economic impacts in the Netherlands ..................................................................................... 31 5. Visa application process ............................................................................................................ 33 5.1. Information search ...................................................................................................................... 33 Box 4: Visa requirement information and search engines............................................................ 33 5.2. Application.................................................................................................................................... 35 Box 5: The journey before the journey ............................................................................................ 35 5.3. Processing time ........................................................................................................................... 37 6. Facilitation opportunities ........................................................................................................... 38 2 1. Background and structure This report has been prepared by UNWTO in response to a request from the Netherlands Board for Tourism and Conventions (NBTC). It complements the recently released study by the European Commission on ‘the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area’.1 While the European Commission study focuses on forecasts of different markets, this analysis compares data specifically related to source markets entering the Schengen Area2, with a particular focus on the Netherlands. In addition, the report looks at the current visa requirements for tourists (temporary visitors) to the Netherlands and identifies areas and measures for further facilitation, taking into account the current framework of the Schengen Area. For the preparation of this report, various background interviews with stakeholders and consultations with Dutch tourism professionals were conducted during the period of March to June 2013. The report is structured as follows: Section ① provides an overview of current activities by countries around the world related to visa facilitation. Section ② gives a summary of the Schengen Area agreement and its visa policies, focusing on the short stay visa (C visa). The chapter continues with quantitative figures for the Schengen C visa and an analysis of the current conditions for the Netherlands within the Schengen context. Section ③ provides an overview of the main international tourism markets that visit the Schengen Area and specifically the Netherlands. Section ④ looks at economic impacts of travel flows on the Schengen Area as well as the Netherlands. Section ⑤ outlines observations made during the research process in regard to current visa application procedures. Section ⑥ draws conclusions and presents recommended measures for visa facilitation. 1 European Commission (2013), Study on the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area; available at: ttp://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=8152. 2 In all cases, preferably Schengen data was used for the analysis. When not available, data for the European Union Member States was used instead. 3 The issue of visa facilitation has become one of the priority areas for the travel and tourism sector worldwide. A number of regional and national improvement initiatives have been enacted recently, further easing access for international travellers. However, lengthy and cumbersome visa procedures still serve as impediments for travellers and act as significant deterrents for international tourism.3 UNWTO research shows that in 2013, on average 64% of the world population is required to obtain a visa prior to an international departure. Though this figure reflects an improvement from the 77% of travellers requiring visas for international travel in 2008, many unexploited opportunities remain to facilitate travel between countries. Research prepared by UNWTO found that the implementation of visa facilitation measures by the G20 economies could generate as much as 5.1 million additional jobs and trigger 200 million USD additional exports from international tourism from 2013 - 2015.4 2. The framework of the Netherlands 2.1. Current visa situation in the Schengen Area Background The Schengen Agreement, first signed by France, Germany and the Benelux countries in 1985, led to the gradual abolition of inside border controls and a common visa policy between countries under the agreement.5 Today, the Schengen Area 3 Visa facilitation has already been on the agenda of the UN in 1963, when the first UN conference on International Travel and Tourism was held in Rome. The recommendation defined during this conference was: ‘all governments should extend to the maximum number of countries the practice of abolishing, through bilateral agreements or by unilateral decisions, the requirements of entry visa for temporary visitors’. States represented at the conference were: Afghanistan, Algeria, Argentina, Australia, Austria, Belgium, Bolivia, Brazil, Bulgaria, Byelorussian Soviet Socialist Republic, Cambodia, Cameroon, Canada, Ceylon, Chad, Chile, China, Colombia, Congo (Leopold-Ville), Costa Rica, Cuba, Cyprus, Czechoslovakia, Denmark, Dominican Republic, El Salvador, Federal Republic of Germany, Finland, France, Greece, Guatemala, Holy See, Hungary, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Japan, Jordan, Kuwait, Lebanon, Liberia, Libya, Luxembourg, Madagascar, Mali, Mexico, Morocco, Nepal, Netherlands, New Zealand, Niger, Nigeria, Norway, Pakistan, Paraguay, Peru, Philippines, Poland, Portugal, Republic of Korea, Romania, San Marino, Saudi Arabia, Senegal, Somalia, Republic of South Africa, Spain, Sudan, Sweden, Switzerland, Syria, Thailand, Trinidad and Tobago, Tunisia, Turkey, Uganda, Ukrainian Soviet Socialist Republic, Union of Soviet Socialist Republics, United Arab Republic, United Kingdom of Great Britain and Northern Ireland, United States of America, Venezuela, Yugoslavia. UN Specialized Agencies: FAO, UNESCO, ICAO, WHO, IMCO. 4 World Tourism Organization and World Travel & Tourism Council (2012), The Impact of Visa Facilitation on Job Creation in the G20 Economies, UNWTO and WTTC, Madrid and London. 5 The agreement´s objective was, and remains, to facilitate the free movement of people and goods within the treaty area as well as harmonizing external border control procedures. The actual implementation of the Schengen Agreement was realized in 1995 and the Schengen cooperation was integrated into the legal framework of the EU on 1 May 1999 through the development of the Amsterdam Treaty. 4 consists of 26 European states and functions for international travellers as one single area.6 Country Belgium, France, Germany, Luxembourg, Netherlands, Portugal, Spain Italy Austria Greece Denmark, Finland, Iceland, Norway, Sweden Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia Switzerland Liechtenstein Border checks abolished 26 March 1995 26 March 1997 1 December 1997 26 March 2000 25 March 2001 21 December 2007 12 December 2008 (land borders), 29 March 2009 (air frontiers) 19 December 2011 Source: Federal Foreign Office of Germany The Schengen C visa for tourism purposes Except for citizens of the Schengen Member States as well as citizens from the 46 currently exempted countries around the world, travellers need to obtain the uniform short stay visa (C visa) when travelling for tourism purposes to one or more countries of the Treaty Area.7 This entry visa in turn functions for all 26 Schengen Member States, facilitating travels throughout Europe for tourism purposes. Citizens of the 46 currently exempted countries represent close to17% of the world population and generated around 39% of all international tourist arrivals in 2011 globally. 8 Valid for a maximum of 90 days in a 180-day period, the C visa can be granted for the purpose of one single entry or multiple entries; however, not all Member States issue a multiple C visa. The single entry visa only allows for an uninterrupted stay of up to 90 days within a 180-day range. A multiple entry visa allows the holder several entries (as many times as the multiple entry visa defines) into the Treaty Area within this timeframe.9,10 6 More detailed information on membership and the agreement can be found under: http://europa.eu/legislation_summaries/justice_freedom_security/free_movement_of_persons_asylum_immigratio n/l33020_en.htm 7 Schengen Aquis are not considered as full Schengen Member States. The 46 exempted countries are (excluding Schengen Member States): Albania, Andorra, Antigua and Barbuda, Argentina, Australia, Bahamas, Barbados, Bosnia & Herzegovina, Brazil, Brunei Darussalam, Bulgaria, Canada, Chile, Costa Rica, Croatia, Cyprus, Ecuador, El Salvador, Guatemala, Honduras, Hong Kong SAR, Ireland, Israel, Japan, Macao SAR, Macedonia, Malaysia, Mauritius, Mexico, Monaco, Montenegro, New Zealand, Nicaragua, Panama, Paraguay, Romania, Saint Kitts and Nevis, San Marino, Serbia, Seychelles, Singapore, South Korea, Taiwan, United Kingdom, United States of America, Uruguay and Venezuela. 8 Currently, the European Commission is processing propositions to allow nationals from 16 small island nations in the Caribbean and Pacific regions, the United Arab Emirates, Peru and Colombia to come to the Schengen area without a visa - be it for business, touristic or family visit purposes. See: http://europa.eu/rapid/pressrelease_STATEMENT-14-19_en.htm. 9 See also: http://www.theschengenoffice.com/explained/schengen_visa.html. 5 Schengen Area visa policies, 2013 The fee for requesting a Schengen C visa is 60 euros for adults and 35 euros for children (6 – 12 years old) whereas children below 6 years of age can obtain the visa without charge.11 In addition, the European Commission has reduced the fee to 35 euros for nine non-EU source markets as an initial measure of visa facilitation.12 Applicants are required in all cases to provide the issuing consulate with documentation including: completed and signed application form, passport, photographs, residence permit and proof of payment of application fee. Depending on the source market of the traveller, additional supporting documents are sometimes required.13 Tourists must apply for their C visa at the country mission of the primary destination within the Schengen area, or where the longest stay will occur. In cases where this is difficult to determine (e.g. round trips, cruises), the application takes place at the 10 For the purpose of this report, the analysis presented in the report focuses solely on the Schengen C visa due to the lower importance the other visas have in regard to tourism. 11 According to information from EC the fee is designed to recover what that the administrative process is costing and was based on information provided by the French administration. 12 The European Commission has concluded visa facilitation agreements with the following nine non-EU countries: Albania (2008), Bosnia and Herzegovina (2008), TFYR of Macedonia (2008), Georgia (2011), Republic of Moldova (2008), Montenegro (2008), Serbia (2008), the Russian Federation (2007), Ukraine (2008). See also: http://ec.europa.eu/dgs/home-affairs/what-we-do/policies/borders-and-visas/visa-policy/index_en.htm. 13 As defined by the European Commission. As an example, the EC decided on the required supporting documents to be submitted by applicants for shorts stay visas for China, travelling for tourism purposes, such as e.g. proof of accommodation, flight reservation and other documents. See also: http://ec.europa.eu/dgs/homeaffairs/e-library/docs/pdf/1_en_act_part1_v4_en.pdf#zoom=100. 6 country mission of the first point of entry.14 For individual travellers, a personal appearance for the application is compulsory. For trips organized through tour operators there are exceptions, depending on the source country (e.g. China - see chapter 3.1.) and other criteria (such as the operator). At the time of the preparation of this report, the European Commission is currently reviewing the Schengen visa system, discussing, among other facilitation measures, the possible exemption for short stay Schengen visas for citizens from Moldova, Peru, Colombia and the United Arab Emirates. In addition, to inform its visa facilitation initiatives, the European Commission has recently published a study on the economic impact of the Schengen short stay visa. 15 2.2. Schengen visa data As previously noted, UNWTO research shows that in 2013 around 64% of the world´s population needed to obtain a traditional visa before embarking on an international journey. While this percentage remains relatively high, it is important to note that significant improvements in facilitating international travel have taken place since 2008, when 77% of the world´s population was required to obtain a visa. This recent global trend toward removing the barriers to travel presented by visa requirements has not been enacted in the Schengen area however, where 77% of the world’s population is still obliged to obtain a traditional visa before travelling.16 Percentage of world population required to obtain traditional visa 77% 77% 77% 77% 74% 64% 2008 2010 2013 Schengen World 14 In case no destination can be determined as main destination, the first point of entry is responsible for the visa application. See also: http://europa.eu/youreurope/advice/docs/faq_en.pdf. 15 European Commission (2013), Study on the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area; available at: ttp://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=8152. 16 While many countries around the world have facilitated travel through eVisa systems, the Schengen Area has not implemented an eVisa system so far. 7 Translating these results into the openness index, a measure devised by UNWTO to assess the extent to which a destination is facilitating tourism, the Netherlands (as did all Schengen Member States) obtained an openness score of 23 in 2013.17 This score places the Netherlands as less open than the majority of other advanced economies which scored an average of 26. In addition, emerging economies are facilitating tourism to a greater extent with respect to openness, averaging 23 on the openness index. Sub-regions of destinations by percentage of world population affected by visa policies, 2013 Openness World Schengen Area a The Netherlands c Advanced Economies c Emerging Economies 30 23 23 26 31 a No Visa b Visa Visa on arrival eVisa required % of world population affected by visa policies 18% 15% 3% 64% 23% 0% 0% 77% 23% 0% 0% 77% 24% 1% 3% 72% 17% 19% 3% 62% By UNWTO regions: Africa 29 9% 28% 1% 62% North Africa 14 14% 1% 0% 85% West Africa 23 7% 23% 0% 70% Central Africa 5 2% 0% 7% 91% East Africa 50 8% 60% 0% 32% Southern Africa 25 25% 0% 0% 75% Americas 36 32% 5% 1% 62% North America 14 11% 0% 6% 83% Caribbean 41 39% 2% 1% 58% Central America 36 31% 8% 0% 62% South America 36 29% 9% 0% 62% Asia and the Pacific 37 20% 20% 6% 54% North-East Asia 29 26% 4% 1% 69% South-East Asia 50 25% 30% 6% 38% Oceania 41 25% 18% 6% 51% South Asia 26 4% 23% 11% 62% Europe 24 21% 3% 2% 74% Northern Europe 23 23% 0% 0% 77% Western Europe 23 23% 0% 0% 77% Central/Eastern Europe 24 16% 8% 5% 71% Southern/Mediterranean Europe 25 25% 0% 1% 74% d - of which EU-28 22 22% 0% 0% 77% Middle East 19 1% 20% 7% 72% Source: compiled by UNWTO based on information of national official institutions. a Scores range from 100 to 0; the higher the score, the better. Openness indicates to what extent a destination is facilitating tourism. It is calculated by summing the percentage of the world population exempt from obtaining a visa with the percentages of visa on arrival weighted by 0.7 and eVisa by 0.5. For the (sub)regional totals, the percentages of the four different visa categories and the resulting openness score represent the averages of 17 On a scale from 1 to 100, with 100 being the most open country. 8 economies in that group (where destination economies are weighted by natural logarithm of the population size (i.e. In ((1,000 population)) in order to take into account differences in destination size). b Visa required means that a visa has to be obtained prior to departure and is not an electronic visa (eVisa). c Advanced economies and emerging economies classifications are based on the International Monetary Fund (IMF); see the Statistical Annex of the IMF’s World Economic Outlook of April 2012, p. 177, at www.imf.org/external/pubs/ft/weo/2012/01. d The EU-28 countries are Austria, Belgium, Bulgaria, Cyprus, Croatia, Czech Rep., Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxemburg, Malta, the Netherlands, Poland, Portugal, Ireland, Romania, the Slovak Republic, Slovenia, Spain, Sweden and the United Kingdom. Openness Index 2013 Note: The higher the score, the better. Openness indicates to what extent a destination is facilitating tourism. It is calculated by summing the percentage of the world´s population exempt from obtaining a visa, with the percentages of no visa weighted by 1, visa on arrival weighted by 0.7, eVisa by 0.5 and visa required weighted by 0. Source: compiled by UNWTO based on information of national official institutions. Disclaimer: The maps developed by UNWTO are for reference only and do not imply any judgement on the legal status of any territory, or any endorsement or acceptance of such boundaries. 9 2.3. Dutch visa data In looking at the number of applications for uniform short stay or C visas processed by the Netherlands, (i.e. tourists either travelling to the Netherlands as their main destination or their first port of entry), there has been a significant increase in recent years. Between 2010 and 2012, they number of applications grew 7% annually, reaching almost half a million applications in the Netherlands in 2012, or around 3%18 of all Schengen applications that respective year.19 In the same timeframe, the Schengen Area had an even higher average annual growth rate of 14%, reaching more than 14 million visa applications in 2012, also indicating increasing numbers of international travellers coming to the Treaty Area.20,21 Country Schengen Area The Netherlands France Year C visa applications 2010 11,812,352 2012 15,116,973 2010 386,759 2012 440,056 2010 1,965,777 2012 2,321,534 Increase in C visa applications (%) 28% 14% 18% Granted C visa (including MEV) Approval rate (%) 11,018,936 93% 14,250,595 94% 355,528 92% 410,273 93% 1,777,899 90% 2,104,760 91% Increase of granted C visa (%) 29% 15% 18% To better understand the opportunities and trends, visa application data is compared with France, a destination – similar to the Netherlands – attracting Chinese and Russian tourists. For Chinese travellers, France ranked number three on the list of 18 3,2% in 2009 and 2010. In this chapter: data is mainly provided by the European Commission, available online at: http://ec.europa.eu/dgs/home-affairs/what-we-do/policies/borders-and-visas/visa-policy/index_en.htm; for the years 2010 and 2011, information comes from: European Commission (2009): Overview Schengen Visa Statistics 2009 to 2011; available at: http://ec.europa.eu/dgs/home-affairs/what-we-do/policies/borders-and-visas/visapolicy/docs/overview_of_schengen_visa_statistics_2012_final_en.pdf; as well as the NBTC. 20 Application figures for Schengen in 2010: 11,812,352; 2011: 13,483,497; 2012: 15,116,973. 21 The leading Member States in terms of received visa applications in 2012 were: France (2.3 million), Germany (1.8 million), Spain and Italy (1.8 and 1.7 million). France could capture 15% of all applications and Germany 12%. Although looking at a comparatively lower base than these leading Member States, the two Member States with the highest annual growth rate of received applications were Iceland (46%) and Spain (30%). 19 10 top five European travel destinations in 2009, following Germany and Italy in the ranking.22 Applications and visas granted in France and the Netherlands 15,117 14,251 11,812 11,019 Schengen France The Netherlands 2,322 1,966 440 387 2,105 1,637 Applications 2010 Applications 2012 355 410 Visas granted 2010 Visas granted 2012 Besides receiving the most visa applications of any country within the Schengen Area in 2012, France also experienced a strong average annual growth rate of 9% between 2010 and 2012. This growth closely corresponds with France´s annual increase in the number of C visas granted over the same time period. 2010-2012 Dutch C visa applications Applications 410,273 396,712 355,011 440,056 428,206 386,759 2010 2011 2012 Visas Visasgranted Issued While France is the Schengen Member State that granted the highest number of visas with 2.1 million approved C visa applications; the country with the highest approval rate was Lithuania with 99% of all visa applications granted (though from a significantly smaller number of applications). In 2012 the approval rate in France was 22 The United Kingdom and Switzerland follow France in the ranking while Holland places 8th position on the list of most popular European destinations (excluding the Russian Federation) among Chinese travellers in 2009. Source: IPK, 2010. Chinese Outbound Travel 2009, IPK International. 11 91%, the Netherlands 93%. On average, across all Member States of the Schengen Area the approval rate was 90%.23,24 With respect to rejection rates of visa applications, the Schengen Area and the Netherlands both experienced a decline in the number of rejections, with rates of 8.9% (the Netherlands) and -15% (Schengen) between 2010 and 2012. The Member State with the lowest rejection rate in 2012 was Lithuania with 0.9%, followed by Greece with 1.1% and Finland with 1.3%. However, it should also be kept in mind that a decline in rejections is not necessarily indicative of faster and easier application processes, as not all characteristics of applications are the same between countries.25,26 Emerging Markets In 2012, the largest number of C visa applications to the Schengen Area were coming from the Russian Federation (6.1 million), Ukraine (1.3 million), China (1.2 million), Belarus (700,000), Turkey (700,000), and India (500,000). As well, in all countries, the number of applications increased from the 2011 level. States with the most visa applications to the Schengen Area (000s) 6069 5266 2011 2012 11431314 Russian Federation Ukraine 10801243 China 584 698 624 669 500 506 Belarus Turkey India Especially significant are the Chinese and Russian C visa application growth rates because of the potential of these source markets. Schengen Area visa applications from China increased by 40.4% per year between 2009 and 2011 and Russian applications grew by 29% per year in the same period, showing a significant increase 23 All granted Schengen C visas in 2010: 11,018,936; 2011: 12,368,750; 2012: 14,250,595. Total C visa applications in Schengen in 2012: 15.116.973. 25 The Netherlands: 8,2% in 2010, 7,3% in 2011, and 6,8% denied visas of total amount of visa applications in NL. 26 th 2011 NL: ranked 18 on scale of countries with smallest refusal rates. 24 12 in demand in each country. As presented in chapter 3 (Market trends), outbound data of these source markets further support this finding. China´s average annual growth in outbound travel indicates a 29.9% increase between 2009 and 2011. This is even slightly higher than Brazil’s outbound market growth (28.2%) over the same time period. Notably, Brazil is projected to be one of the strongest outbound markets in the world in the future (see box 3). The Russian Federation, as a more experienced outbound market, had an annual average growth rate of 18.2% between 2009 and 2011, which is lower than the increase in annual average growth rate for visa applications in the Schengen Area. Chinese travellers represented 8.2% of all C visa applications with a total of 1.2 million applications.27 In 2010, the share was only 6.6%. Out of all Chinese visa applications, 3.4% Total Applications in were handled by the Netherlands. Schengen C visa applications from Chinese travellers in 2012 41,996 Schengen (excl. NL) 28,29 The Chinese arrival data (see also chapter 3) to the Netherlands from 2011 indicates that only 26% of the arrivals from China applied for a Schengen C visa with the authorities 30 of the Netherlands. This figure closely reflects the travel behavior of Chinese travellers, who tend to visit the Netherlands primarily on a multiple-destination tour through Europe. While the average approval rate for C visa applications from China was 95.4% in the Schengen Area, the approval rate for Chinese C visa applications managed by the Netherlands was slightly higher with 96.5%. 1,200,51 1 The Netherlands - Uniform short stay (C visa) application 2012 Country Applications filed Visas granted Success rate NL Success rate Schengen Russian Federation 57,087 56,561 99% 97,8% China 41,996 40,536 96,5% 95,4% 27 Total Amount of C Schengen Visa applied for in the Schengen Area in 2012: 15,116,973. Chinese applications in Schengen in 2010: 778,501; total Schengen applications in 2010: 11,812,352. 29 Source: COM Schengen Figure Sheet and EC Overview of Schengen Figures 2009 to 2012. 30 In 2011, 155,700 visitors came from China to the Netherlands. 28 13 In 2012, 40.1% of all Schengen C visa applications (6 million) were received from the Russian Federation. In 2010, the share was 35.7%.31 In 2012, the Netherlands received 57,087 applications in total, but captured only 1% of all Russian applications to enter the Schengen Area. The Schengen Member State receiving the most Russian applications in 2012 was Finland, with a total of 1.5 million Russian C visa applications and an approval rate of 99.5%.32 The 2011 arrival data (as presented in chapter 3) indicates that 41% of all Russian arrivals to the Netherlands applied for a Schengen C visa with Dutch authorities.33 By comparison, 47.5% of all Russian arrivals to Finland applied for a Schengen C visa with Finish 57,087 authorities. The fast processing time of visa applications by the Finish Total Applications authorities (about 2 days) meets the Schengen (excl. NL) preference for short notice bookings, which are characteristic 6,011,914 for the Russian market (70% of Russian travellers book their trips one week to one month in advance34) and reflects aboveaverage growth. Similar growth in Russian visa applications was also observed when Israel, Brazil and Turkey facilitated entry requirements for Russians. Schengen C visa application from Russian travellers in 2012 Arrivals from citizens of the Russian Federation in: Year Brazil Israel Turkey 2009 10,038 231,366 2,694,733 2010 15,863 318,572 3,107,043 2011 22,355 353,419 3,468,214 2012 25,141 380,737 unknown 31 Total Schengen applications from the Russian Federation in 2010: 4222,551. Granted C Visas from Finnish authorities (filed from Russian citizens) in 2012: 131,864. 33 In 2011, 139,000 Russian visitors came to the Netherlands. 34 European Tour Operators Association (2010), Europe: Open for Business? Reopening the debate on visa policy; available at: www.etoa.org. 32 14 2.4. Schengen visa reciprocity As of 2013, 54% of all visa policies around the world are reciprocal, meaning they are consistent for citizens of each of the two countries (of which 16% were visa free).35 While all visa policies within the Schengen Area are reciprocally free (100% open reciprocity between Member States), citizens from an additional 46 countries are currently exempted from needing to obtain a visa before entering the Treaty Area. Requirements for citizens of Schengen Member States travelling abroad vary depending on their citizenship and the destination. Currently, citizens of the Schengen Area are required to obtain a visa before entering 48 countries 36 around the world and they are not required to obtain a visa for 120 countries. Countries which are exempt from requiring visas when entering the Schengen Area generally do not require visas from Schengen travellers in return.37 There is some variation however, and travellers from Southern Schengen Member States are more often required to hold visas when travelling abroad relative to those from northern Schengen countries. Estonian nationals and citizens of the Czech Republic are most frequently required to hold visas when entering foreign countries (visas are required for both nationalities when entering 58 countries around the world). Nationals of the Czech Republic are also exempted from visas the least when entering other destinations (visas are not required in only 114 destinations). This contrasts Finland where Finnish nationals are the least frequently required to hold visas when entering foreign countries (visas are required when entering just 41 countries) and they are exempt from visa requirements the most when entering foreign countries (visas are not required when entering 126 countries). The Netherlands Dutch citizens are far less frequently required to obtain visas than inbound travellers are when entering the Netherlands for tourism purposes. In 2013, 122 destinations around the globe38 did not require Dutch citizens to obtain visas before travelling. This number remains unchanged since 2008; however, the number of destinations requiring a traditional visa from Dutch citizens decreased from 68 countries in 2008 to 43 countries in 2013, indicating that destinations around the world increasingly offer 35 All in all, 19,914 reciprocal policies were analyzed. From 216 destinations analyzed; in 5.6 cases, eVisa can be applied for on average; in 40.8 cases, VoA can be applied for on average. 37 Countries that require Member States to hold visas, but are not required holding visas when entering the Schengen Area are Australia and the USA (requiring eVisas) as well as Seychelles (requiring visa on arrival). 38 From 216 destinations analyzed. 36 15 Dutch citizens the options of visa on arrival or eVisa.39 This trend indicates the positive perceptions among other countries toward Dutch travellers around the world and highlight the increasing mobility Dutch citizens enjoy when travelling internationally. Box 1: Focus China and the Russian Federation In recent years, China has maintained its visa policy requiring nearly all foreign citizens to obtain a visa prior to entering the country. From 2008 to 2012, China has only changed a few entry requirements for neighboring countries and has shown no reciprocal visa free policy changes. However, in 2013, a bilateral agreement on mutual visa free travel was signed with the Seychelles, indicating China´s growing interest in visa facilitation measurements. In contrast, the Russian Federation has embraced eliminating visa requirements with numerous countries for a number of years. Before 2010, the country required visas from all travellers except for citizens from neighboring countries. Between 2010 and 2012, the Russian Federation initiated facilitation measures allowing visa free travel for citizens of (from South America) Argentina, Brazil, Chile, Colombia, Peru and Venezuela; (from Asia) Hong Kong and Thailand; (from Europe) Bosnia & Herzegovina, Croatia, Macedonia, Israel, Montenegro, Serbia and Turkey. Of these countries, Argentina Brazil, Peru, Hong Kong, Thailand, Israel, Montenegro and Serbia did not require visas of Russian citizens in 2010 or 2012; Chile, Ecuador, Venezuela, Bosnia & Herzegovina and Turkey made a reciprocal change in exempting Russian citizens from requiring documentation. In the case of Colombia, the Russian Federation facilitated entry requirements even though Colombia tightened their requirements for Russian citizens in 2012 from `no visa´ to `visa required´. Of the countries for which the Russian Federation removed visa requirements between 2010 and 2012, Argentina, Brazil, Hong Kong, Israel and Serbia and Thailand had already lifted visa requirements for Russian citizens between 2008 and 2010. No visa policy changes have occurred between the Russian Federation or China and any Schengen Member States. 39 Example visa on arrival: In 2013, Dutch citizens could obtain a visa on arrival in 41 countries. In 2008, this number was much lower with 25 countries offering visa on arrival to Dutch citizens. 16 3. Market trends UNWTO´s research shows that international tourist arrivals (overnight visitors) grew by 5% in 2013, reaching a record nearly 1.1 billion arrivals. Despite global economic challenges, international tourism results were well above expectations, with an additional 52 million international tourists travelling the world in 2013. Year 2009 2010 2011 2012 2013* Annual arrival growth rates (%) International Advanced Tourism Arrivals Economies 6.5 6.5 4.9 4.7 4.1 3.9 5.1 5.3 Annual growth in outbound markets (%) Emerging Economies 8.5 4.9 4.0 4.9 China 20.4 22.4 18.4 - Russia 14.7 11.1 9.3 - Note: China Outbound: excluding Hong Kong and Macao * 2013 based on preliminary data While Europe remains the world’s largest source region, generating just over half of all international tourism arrivals worldwide, many emerging economies (especially in Asia and the Pacific) have shown fast growth in recent years. 40 Emerging economies marked higher annual average growth rates in recent years in comparison to the advanced economies (see table above), which is a trend that is expected to continue. Although the Netherlands depends, aside from EU travellers, largely on the US market, the BRIC countries (Brazil, the Russian Federation, India and China) are increasingly important. Currently, China still generates the most visitors compared to the other three BRIC nations; however, the greatest average growth rate per year between 2007 and 2011 was generated by Brazil with 17.6% (in comparison: India 15.5%, the Russian Federation 13.4%, Australia 7.8% and China 6.4%).41 Between 2010 and 2011, China, followed by Brazil, Russia and Australia, had the greatest average growth rates. 42 Top Arrivals to the Netherlands (from non-Schengen countries) 2004 2008 2011 USA USA USA Japan Canada China Canada Japan Russian Federation China China Canada Australia Russian Federation Australia Russian Federation Australia Japan Israel Israel Israel Turkey India India Indonesia Turkey Turkey 40 Asia and the Pacific: greatest annual growth rate between 2006 and 2012 with 6,4%. Source: NBTC 2012 Market Figures 42 Source: UNWTO Arrival Data 41 17 For the Netherlands, with 20% of its 11.3 million43 international arrivals in 2011 coming from outside of Europe, these markets are clearly of increasing importance. Total arrivals to the Netherlands (in millions) 2 1 Arrivals from outside Europe 9 European arrivals 5 1995 2011 Focus China Chinese outbound tourism has increased almost eight-fold between 2000 and 2012, surging from 11 million international trips at the beginning of the decade to over 83 million in 2012. From these 83 million trips, an estimated 49% were not required to obtain a visa before travelling internationally, whereas 51% of Chinese travellers were required to do so It is expected that the Chinese market will reach the 100 million mark for international trips (including travel to Hong Kong, China) and Macao, China) well before 2020. 44, 45 43 UNWTO (2012), Yearbook, Arrivals of non-resident tourists in all types of accommodation establishments, by country of residence, UNWTO, Madrid. 44 UNWTO (2013), The Chinese Outbound Travel Market: Outbound Travel Trends, 2012 update, UNWTO, Madrid. 45 Of the 51% requiring a visa, 23% were visas on arrival; 4% were eVisas. 18 Outbound Travel from China, 1995 - 2011 Source: Compiled by UNWTO, based on CNTA data In 2011, Europe was the second most popular outbound destination for Chinese travellers, capturing 4.4% of all outbound trips (leisure and business). Countries within Europe most popular for Chinese travellers in 2011 were France, the Russian Federation, Germany, Switzerland and Austria. Source: CBS, 2012 In 2011, 157,000 Chinese citizens visited the Netherlands (about 4 million ventured to Europe the same year), spending a total of 261,000 nights in the country. In 2012, 198,000 Chinese visitors came to the Netherlands.46, 47 Of all non-Schengen source markets, the Chinese market was the third biggest market in 2011 (behind UK and the US) in terms of visitor arrivals to the Netherlands.48 Between 2006 and 2011, the average annual growth rate for this market was 12.6%. Of a total of 11.3 million visitors in the Netherlands in 2011, 1.4% were Chinese tourists. By comparison, 1.1% of all visitors came from China in 2010. 46 UNWTO (2013), The Chinese Outbound Travel Market: Arrivals of non - resident tourists in hotels and similar establishments, 2012 update, UNWTO, Madrid. 47 CBS Statistics Netherlands 48 UK: 1.433.400 arrivals, United States: 946,000 arrivals, China: 155,700 arrivals. 19 About 45% of the Chinese visitors to the Netherlands came for holiday purposes.49 According to the NBTC forecast, the number of Chinese guests will increase to 400,000 in 2020. Focus: The Russian Federation The Russian Federation also presents one of the fastest growing outbound markets worldwide, which is especially interesting for the Netherlands due to its geographic proximity. Russian outbound tourism grew to over 47 million trips abroad in 2012. Of these outbound trips, an estimated 51% did not need to obtain a visa and 48% needed to obtain a visa.50 Source: CBS, 2012 For Russia, 87,000 arrivals were counted to the Netherlands in 2006. 51 In 2011, the number grew to 146,000 arrivals, representing the fourth biggest source market from outside the Schengen Area. From a total of 11.3 million tourists to the Netherlands in 2011, 1.2% were Russian tourists. In 2012, the number of arrivals from the Russian Federation grew further to 162,000 arrivals, making up 1.4% of all arrivals to the Netherlands. Additionally, when looking at the ratio of international tourist arrivals and C visa applications for both the Schengen Area and the Netherlands, the proportions are similar with 3.8% for both the Netherlands (the Netherlands received 11.3 million international tourism arrivals in 2011 and 428,206 C visa applications) and the Schengen Area (the Treaty Area received 358 million international tourism arrivals and 13.5 million C visa applications in 2011). This indicates that the Netherlands attracts similar proportions of international tourists that are required to obtain a visa as the Schengen Area does overall. In comparison, France received in 2011 81.5 million international tourist arrivals and 2.1 million C visa applications (2.6%), whereas Spain received 56.1 million arrivals and 1.5 million applications (2.7%). 49 Netherlands Board of Tourism & Conventions (2009), Inbound Tourism research 2009, NBTC, Leidschendam. Of the 48%, 23% were visas on arrival and 0.7% were eVisas. 51 World Tourism Organization and European Travel Commission (2009), The Russian Outbound Travel Market with special insight into the image of Europe as a destination, UNWTO and ETC, Madrid and Brussels. 50 20 3.1. Visa regulations and travel behavior of the Chinese and Russian market Because of the important opportunities presented by these source markets previously mentioned, a more specific analysis of the Russian and Chinese outbound markets is warranted. Booking Times Half of Chinese travellers book their trip one week to one month before travelling, while 47% book their journeys one to three months in advance.52 The Schengen Area visa application process requires two to three weeks for processing (depending on the Member State). In addition, numerous supporting documents from Chinese citizens are required, which take time to process and obtain beforehand. Due to these time consuming requirements, the Schengen visa procedure is rather discouraging for this source market. Also, because flight and hotel confirmations need to be included in the Schengen visa application, Chinese travellers are usually obliged to book the main elements of their holidays before applying. This indicates that under the current Schengen visa system, it is impossible for Chinese travellers to book their trips on short notice. The situation for the Russian market differs. Due to the fact that Russian travellers are not required to provide as many supporting documents for the application, they are able to plan their trips to the Schengen Area on shorter notice, which favours their booking behavior. As stated before (chapter 2.2.), 70% of Russian travellers book their trips one week to one month in advance. Due to closer geographic distances to the Schengen Area (around 3 hours flight from both Moscow and St. Petersburg to Amsterdam53), city weekend trips are attainable and increasingly popular. Also, the Russian market is a more experienced source market than the Chinese market. Russian travellers feel more comfortable booking trips on short notice with little advance preparation. Encouraging travel among Russian citizens, in 2007, the Schengen area reduced the visa fee for Russian travellers to 35 euros, and offered an additional fast track option in cases where the visa application and the supporting documents have been submitted by the visa applicant within three days before his/her envisaged date of departure (cost of visa then 70 euros).54 52 European Tour Operators Association (2010), Europe: Open for Business? Reopening the debate on visa policy; available at: www.etoa.org. 53 Non - stop flights (these are more expensive flights; there are currently only cheap one - stop flights available). 54 European Commission Home Affairs; Information available at: http://ec.europa.eu/dgs/home-affairs/what-wedo/policies/borders-and-visas/visa-policy/index_en.htm 21 Group Travel Group travel to the Netherlands represents only a relatively small segment. In 2009, only 7% of all international tourist arrivals to the Netherlands were arriving as an organized group. Nevertheless, for Chinese tourists, group travel is the predominant form of travel, accounting for 98% of the outbound trips in 2009 in China.55,56 The Netherlands, when visited by the Chinese, is usually part of a tour that visits to six to eight countries in around ten days. For Russians on the other hand, group travel is much less common. Besides more travel experience and the facilitation measures previously mentioned, the current Schengen visa system imposes the same application requirements for individual Russian travellers and group members, not favoring one over another. Certainly, for first-time travellers and among middle-aged and older people, touring holidays remain attractive. However, as Russians gain more experience travelling to the Schengen Area and become increasingly used to Internet resources and the growing number of online booking platforms, individual travel is becoming more and more important. 55 Excluding travelling to Hong Kong, China and Macao, China. Source: UNWTO and European Travel Commission (2013), The Chinese Outbound Travel Market,2012 Update, UNWTO and ETC, Madrid and Brussels. 56 The tour operator will arrange all necessary documents, including the ADS visa application, and only random interviews take place. 22 4. The economic impact of visa facilitation Visitor expenditures on accommodation, food and beverage, local transport, entertainment and shopping are important contributors to the economy of many destinations, generating much needed employment and further opportunities for development. In 2012, international tourism expenditures reached a record of 839 billion euros, with Europe taking the largest share. Evolution of international tourism expenditure by top country spenders, 1995-2012 Source: World Tourism Organization, UNWTO. Two remarkable changes in the top ten ranking by international tourism spenders in 2012 were noted: China leaped to first place, overtaking both long-time top spenders Germany and the United States with a total spending of 79.4 billion euros, while the Russian Federation´s spending climbed to fifth place, with a total spending of 33.3 billion euros. For the Schengen Area this means that two out of the five top country spenders on international tourism in 2012 are still required to hold a C visa when entering the Treaty Area. Encouraging the development of key tourism markets as a compliment to the existing European markets through visa facilitation measures will 23 ensure that the potential economic benefits generated by international tourism are realized.57, 58 Box 2: The economic powerhouse of the 21st century In this first half of the 21st century, a major shift in global economic power is taking place as emerging economies, sustained by rapid economic development and population size become increasingly significant as compared to the already advanced economies. According to the thesis first put forward by Jim O'Neill, economist at Goldman Sachs, Brazil, Russia, India and China (BRICs) are expected to take their place among the most dominant economies by 2050 given their economic potential. China is expected to overtake the United States as the largest economy by Gross Domestic Product (GDP) by around 2025. Of the other three BRIC economies, India is expected to move up to third place (from 10th) in the ranking of the 15 largest economies by 2030, Brazil to fourth (from eighth) and the Russian Federation to sixth (from ninth). Other large emerging economies that will gain in significance are Mexico moving up to 10th place, Indonesia to 12th and Turkey to 14th. Consequently, the leading advanced economies United States, Japan, Germany, France, United Kingdom, Italy, Canada, Spain and Australia, will all move down one or more places. Per capita GDP is also growing fast in all the aforementioned emerging economies, but is still lower than in advanced economies as they have comparatively larger populations. See further: BRICs and Beyond, Goldman Sachs Global Economics Group, 2007 15 largest economies in 2010 and by 2030 Population Rank million 2010 2030 2010 2030* 2 1 China 1,341 1,393 1 2 USA 310 362 10 3 India 1,225 1,523 8 4 Brazil 195 220 3 5 Japan 127 120 9 6 Russia 143 136 4 7 Germany 82 79 5 8 France 63 68 6 9 UK 62 69 14 10 Mexico 113 135 7 11 Italy 61 61 17 12 Indonesia 240 280 11 13 Canada 34 40 16 14 Turkey 73 87 15 15 Rep. of Korea 48 50 12 16 Spain 46 50 13 17 Australia 22 28 Gross Domestic Product (GDP) US$ billion, fixed 2010 share in world 2010 2030* 2010 2030* 5,633 31,731 9% 23% 14,614 22,920 24% 17% 1,594 7,972 3% 6% 1,990 5,862 3% 4% 4,773 5,852 8% 4% 1,689 4,730 3% 3% 3,640 4,441 6% 3% 2,866 4,205 5% 3% 2,582 3,644 4% 3% 1,050 2,991 2% 2% 2,295 2,868 4% 2% 692 2,446 1% 2% 1,583 2,346 3% 2% 704 2,169 1% 2% 1,014 2,112 2% 2% 1,542 1,966 3% 1% 1,191 1,802 2% 1% average % a year 2010-2030* 9.0% 2.3% 8.4% 5.5% 1.0% 5.3% 1.0% 1.9% 1.7% 5.4% 1.1% 6.5% 2.0% 5.8% 3.7% 1.2% 2.1% GDP per capita (US$, fixed 2010 2010 2030* 4,200 22,800 47,100 63,350 1,300 5,250 10,200 26,600 37,700 48,700 11,800 34,650 44,250 55,900 45,650 61,400 41,600 52,550 9,250 22,100 37,900 47,150 2,900 8,750 46,550 58,850 9,700 25,050 21,050 41,950 33,450 39,300 53,500 64,900 Source: compiled by UNWTO based on Goldman Sachs Global Economy, EM Equity in Two Decades: A Changing Landscape , Global Economics Paper No: 204, Timothy Moe, Caesar Maasry and Richard Tang, September 8, 2010 57 Spending from Germany in 2012: US$ 84 billion; United States: US$ 83 billion. Between 2010 and 2011, China recorded the highest increase with 32% or an additional US$ 18 billion spent on international tourism. Between 2011 and 2012, this number increased with an annual growth rate of 37%. 58 24 4.1. International tourism receipts in detail As the world´s most popular tourism destination, Europe took a market share of 34% of the global annual tourism receipts in 2012, with some 264 million euros in total. The top seven spenders in Europe and the Netherlands in 2011were: United States, Russia, Australia, Canada, China, Brazil and Japan (by rank). 2011 Dutch tourism revenue generated by (Euro million): 623 Tourism revenue generated 126 USA Russian Federation 95 91 85 Australia Canada China The United States is still, by a considerable margin, the largest source of international tourism receipts for the Netherland of the non-Schengen or EU source markets. The top five source markets (from outside the Schengen Area) for the Netherlands spent in 2011: 623 million euros (US), 126 million euros (the Russian Federation), 95 million euros (Australia), 91 million euros (Canada), and 85 million euros (China), with average annual growth rates for the 2009 to 2011 period of 11.7%, 26.4%, 24.4%, 15%, 8.2%, respectively. Average annual growth rates of tourism receipts per source market, 2009 - 2011 (%) 26,4 24,4 15,0 Average annual growth rates 11,7 8,2 USA Russian Federation Australia Canada China 25 Notably, two out of the five leading spenders for the Netherlands are required to obtain visa when visiting. In addition, a stagnating or even decreasing importance can be observed in many of the most important source market for the Netherlands. The data show the markets responsible for the largest tourism receipts for the Netherlands (which in 2011 represented an estimated 12.5% of the non-European source markets) have shown an average annual proportional growth rate of -1.7% between 2009 and 2011. In other words, whereas traditionally countries from the European Union have been the greatest sources of international tourism receipts for the Netherlands, growth is now coming from non-European source markets. Focus: China and the Russian Federation Chinese tourism expenditures abroad (Euro billion) 2012 79 2011 52 2010 41 2005 17 2000 140 0 10 20 30 40 In terms of spending power, Chinese are, in comparison to other top growing source markets, an exception to the results in the Netherlands. Although the strongest spending market on a global level in 2012, Chinese travellers spent much less per trip in the Netherlands than their average spent per trip (974 euros). With 548 euros per trip spent in the Netherlands in 2011, Chinese travellers rank significantly lower (seventh place) as compared to the top spenders with 800 euros and more per trip. A similar trend can be observed with regard to Chinese spending per day (338 euros) in the Netherlands. While travellers from some source markets spent more per trip than others (because of the length of time that they stay in the Netherlands), others spent more because of individual spending habits. For example, US and Chinese travellers stay in the Netherlands on average for 1.68 nights and 1.62 nights respectively. For the Chinese visitors in particular, leisure travellers are value-conscious in spending on transport, accommodation, food and beverages but tend to be big spenders on retail 26 shopping.59 As they travel mainly in organized group tours, they tend to see the Netherlands as one stop of many along a tour through Europe (see chapter 3.1.). During their journey, Chinese travellers know exactly what they want to purchase and generally prefer spending their money in ‘en vogue’ destinations, such as Paris. That said, with the progressively more ‘relaxing’ restrictions on Chinese foreign travel and the increasing experience of Chinese travellers, these preferences may change, creating opportunities for the Netherlands to absorb a greater proportion of international travel spending. Russian international tourism expenditures (Euro billion) 2012 33 2011 24 2010 20 2005 14 2000 10 0 10 20 30 40 Russian tourists spent 7.8 billion euros in the EU in 2011, which was 33% of their total international tourism expenditures. In the Netherlands in 2011, Russians spent 126 million, which was 0.54% of their total international tourism expenditures. Top average spending per trip in the Netherlands, 2011 910 € 823 € 793 € 778 € 752 € 659 € 548 € Russian Federation Turkey India Israel Australia USA Average spending per trip in the Netherlands China 59 Shopping benefits about one third of the total expenditure on holidays, showed a survey among Chinese travellers to various EU member states (Source: CNTA, 2005) 27 Besides being the second biggest spenders from outside of Europe, Russian tourists also spend the greatest amount of money per trip in the Netherlands with 910 euros. In comparison, Turkish nationals rank second spending 823 euros per trip and Indian tourists third, spending 793 euros. The average length of stay (in average nights spent per arrival) of the top five trip spending markets are: Russian Federation: 1.98 nights; Turkey: 1.86 nights; India: 2.02; Israel: 2.00 nights; and Australia: 1.98 nights. All of the `greatest per person, per trip spenders´ stay in the Netherlands above or equal to the average trip duration of 1.86 nights of non-European source markets. The top international tourism source markets of per day spending in the Netherlands (2011) were: Russia: 459 euros; Turkey: 442 euros; Indonesia: 398 euros; Korea: 396 euros; Japan: 395 euros. These are predominantly different source markets than the greatest spenders per trip. Besides Russia and Turkey, the other top spenders per trip had per day spending of: India: 392 euros; Israel: 390 euros; and Australia: 380 euros. Top average spending per day in the Netherland, 2011 459 € 442 € Russian Federation Turkey 398 € 396 € 395 € 392 € 391 € Indonesia Korea Japan India USA Average spending per day 28 Box 3: The impact of the diamond Gassan Diamonds and Coster Diamonds are both family run businesses that are located in Amsterdam. From a total of 8.7 million arrivals in the Netherlands in 2010, 7.5% of them visited one of the two enterprises. Especially among international markets with high spending power, the diamond factories are increasingly known and one of the major attraction points in Amsterdam. For example, of the 124,300 Chinese tourists visiting the Netherlands in 2010, 64.4% visited at least one of the two businesses, spending on average a total of 250 euros per person. The amount of 250 euros also corresponds to other emerging markets such as Russian Federation. Combined, Gassan and Coster´s revenue in 2010 was 130 million euros. Since about 7% of all visitors actually spend money when visiting the businesses, this means that the people who bought something spend on average 200 euros per person. Conclusively, Chinese spend usually about 50 euros more than the average visitor to the companies. In a broader perspective, visitors´ expenditures in the diamond businesses are only a part of the economic benefits for the Netherlands. One example can be the Chinese market. Assuming that a Chinese tourist stays at least one night in the Netherlands (the usual length of stay for the market is 1.7), the following additional economic impact in expenditures can be expected: 1000 euros for the plane ticket (more than 95% of the international visitors who come to the Netherlands by plane, land at Schiphol), 150 euros for the hotel, around 150 euros for food for two days (assuming three meals per day for 25 euros), 50 euros for further excursions and about 100 euros for souvenirs. In total (including the 250 euros spent at one of the diamond businesses), this means 1700 euros spent per Chinese visitor. Although the example above illustrates just one dimension of direct economic contribution of travel and tourism, further economic multipliers such as the direct contribution to employment within the Netherlands should be considered. Facilitating the entry requirements to the Netherlands for strong markets such as the Chinese market creates economic opportunities that should not be ignored. In fact, the rising awareness of Chinese citizens of the Netherlands in combination with more open entry requirements would create, especially for Amsterdam and the diamond businesses, an opportunity to establish the Netherlands as a main attraction point within the Schengen Area in the future. 29 4.2. Economic impacts in the European Union Citizens of countries that are required to obtain a visa prior to travelling to the EU currently are the smallest generators of EU international 10% tourism revenues. From a total of 272 European Union billion euros in tourism revenues in 22% Visa exempt 2011, the majority (186 billion; 68% of total) was generated from other EU 68% Visa required travellers. Only 10% were generated by source markets that are required to obtain a visa before entering the EU, while an estimated 58.5 billion euros were generated from economies outside of the EU that are not required to obtain a visa before travelling to the EU. European Union international tourism recipts Source markets of EU tourism revenues show that on average, travellers from countries that are more easily able to enter EU countries make up a greater percentage of EU tourism revenues and a greater proportion of their respective outbound markets (i.e. visa openness positively correlates with tourism revenues). EU revenue growth (post 2007) Growth rates of international tourism receipts between 2009 and 2011 suggest that whereas European citizens are still the greatest source markets of international tourism60, new market trends are emerging. Average annual growth rates of international tourism receipts (2009-2011) generated in the EU were 3.4%, from other EU countries, 8.9% from countries exempt from visa policies, and 23.8% from countries that required obtaining a visa. As emerging markets that are required to obtain visas continue to grow, visa facilitation will become increasingly important for realizing the potential economic benefits. Both the Chinese and Russian outbound markets are required to obtain visas before travelling to the Schengen Area. In revenue magnitude, these two source markets are greater than most other markets currently exempt from visa requirements. Despite being required to obtain a visa before travelling to most European countries, the Chinese and Russian markets showed an average annual growth rate of 20.6% and 32.8% for Europe, generating total 2011 revenues of 3.1 and 7.8 billion euros respectively. 60 Followed by citizens exempt from visa requirements and citizens required to obtain visas before travelling. 30 Similar to the prospects in terms of arrivals, with projected GDP and disposable income growth in China and Russia, these two countries are also expected to be increasingly valuable source markets for international tourism revenues for EU destinations. 4.3. Economic impacts in the Netherlands In 2011, the Netherlands received 10.3 billion euros in international tourism receipts 6% (3.8% of the total receipts for European Union 15% the EU). Of the 10.3 billion Visa exempt euros, 8.2 billion euros (80%) Visa required were generated by tourists from other European Union source 79% markets. Estimated international tourism receipts generated by countries outside the EU, whose citizens are exempt from visa requirements, are 1.4 billion euros. Citizens of countries that are required to obtain a visa before travelling to the Netherlands generated 500 million euros in tourism revenues in 2011. Similar to the European Union in general, the Netherlands receives the vast majority of its international tourism receipts from other EU countries and to a lesser degree, revenues from nationalities exempt from visa requirements and nationalities required to obtain a visa. Netherlands international tourism receipts, 2011 The Netherlands revenue growth (post - 2007) Consistent with the European Union total, from 2009 to 2011 the Netherlands experienced the greatest growth of international tourism receipts from source markets that are required to obtain a visa; moderate growth of international tourism receipts from markets exempted from visa requirements; and lesser growth of receipts from other EU source markets. Average annual growth rates of EU markets, markets exempt from visa requirements and markets that are required to obtain visas before travelling were 7%, 14.9% and 18.9%, respectively. In comparison to the EU, the Netherlands showed relatively greater growth in terms of international tourism receipts from EU countries and countries that are exempt from visa requirements, while having relatively less growth from markets that are required to obtain a visa before travelling. 31 Average annual growth rates of international tourism receipts, 2009-2011 (%) 23,8 18,9 14,9 7,0 8,9 European Union The Netherlands 3,4 European Union Visa exempt Visa required Nevertheless, when looking at general trends, source markets that are required to obtain a visa before travelling tend to have higher average annual expenditure growth, higher trip spending, and higher daily spending. An outlier to these results is the Chinese market (reasons for this are analyzed later in this chapter). The difference between the European Union´s and the Netherlands´ revenue generation trends are, by a considerable portion, due to receipts generated by a few key source markets, such as US receipts in the Netherlands, generating a significant market share. Although, from 2009 to 2011, the Chinese and Russian outbound markets have grown considerably in the Netherlands (8.2% and 26.4%, respectively), they have grown at a lesser rate, compared to the EU (20.5% and 32.8%, respectively). This means that the Netherlands has increasing international tourism receipts from Russia and China but is losing market shares compared to the European Union as a whole. 32 5. Visa application process To find practical solutions for current visa facilitation challenges that individual visa applicants, commercial intermediaries, external service providers, consulates and embassies face, the following chapter focuses on the main observations made during the research. 5.1. Information search The first stage of the visa application process begins usually by identifying requirements and details of the procedure. Within this process, numerous factors are crucial for the delivery of high quality services and the satisfaction of the applicants. Online Search The availability of online information about international destinations and specific entry requirements becomes increasingly important as generations become more Internet adept. Reliable and precise information about the most important aspects of the destination and visa requirements need to be easily available in order to support the applicant. Box 4: Visa requirement information and search engines Despite the fact that the Ministries of Foreign Affairs usually have the most detailed and accurate information on visa requirements, only in seven out of 26 cases in the Schengen Area, the website of the Ministry of Foreign Affairs is positioned as the top rank in Google search61, among these the Netherlands. In 14 cases, the Ministry of Foreign Affairs or the national tourism website was shown in the top three search results. In addition, in 14 cases was a link to the website of the Ministry of Foreign Affairs found. Although those differences occur regularly between the different websites of Member Countries, there is no common website from the European Commission where the process is clearly explained in multiple languages and where users could link to the individual country sites. Certainly, differences in the phrases and keywords that each Schengen country uses for their official website provide different ranking for the phrase ‘visa requirement’. For example, the Austrian website from the Ministry of Foreign Affairs prominently uses the German word ‘visum’, which results in their website being ranked relatively low in a Google search when entering the English phrase ‘visa requirement Austria’. Spain uses the term ‘entry requirements´ on the Ministry’s website, which is why it was not positioned on the first ranks in a Google search. Resources such as Google Trends can inform website management about what search terms are most commonly searched and can be continuously checked to ensure that website content is current with what travellers search. 61 Assuming that ‘visa requirement and ‘the destination’s name’ is the first search term in Google search. 33 Ministries of Foreign Affairs and National Tourism Organizations (NTOs) that use the same words to explain visa requirements optimize the likelihood that travellers will be directed to a website from a search engine. Language of Information The display of visa requirements on both the national tourism and Ministries of Foreign Affairs websites in different languages, especially those of the most important emerging source markets, facilitate the visa application process. In 2013, only four out of all 26 Schengen Member States offered visa information through their Ministry of Foreign Affairs online in more than five languages (Germany, France, Sweden, Estonia).62 In comparison, 18 Member States present information through their NTO websites in more than five languages, which always includes English. Only two Schengen Member States´ national tourism websites do not present any visa information. Despite the fact that visa information on the websites of NTOs is provided by 24 Member States, explanations are usually brief and require applicants to refer to the Ministry of Foreign Affairs or to look for further additional sources. As the Russian Federation and China are expected to grow as major international tourism source markets for the Schengen Area, Russian and Chinese are increasingly important as available languages on websites. In 2013, 15 Member States presented their national tourism websites in Chinese and Russian. However, only four Member States have either Chinese or Russian on their Ministry of Foreign Affairs websites and of these four, Germany is the only country providing both Chinese and Russian as an option. Quality of Available Information Online The reliability of the information is an essential factor that shortens the information search for applicants and reduces uncertainty and frustration in the visa application process. In total, 14 out of the 26 Schengen States have links from their NTO websites (which are usually more visited) to the Ministry of Foreign Affairs websites, creating a uniform and coordinated representation of the countries´ visa regulations. About half of the 26 Member States have visa information on their Ministry of Foreign Affairs websites no older than from 2012.63 The diversity of the information given either on the NTO or Ministry of Foreign Affairs websites varies within the Schengen Area. The majority of the 26 States show clear and updated visa information on the websites of the responsible ministries. The Netherlands is one example that has created clear, accurate and an understandable overview of visa related information on their Ministry of Foreign Affairs website. 62 63 These are results from a comparison of the Ministry of Foreign Affairs´ websites across the Schengen Area. Or another official Ministry responsible for the Schengen visa. 34 Additional External Sources Being able to find information and to organize the visa for the Netherlands via an external service provider presents an attractive alternative for many applicants. Not only is the average wait time shortened in most cases when applying via an external service provider, but the neutral party can effectively represent the interest that the applicant receives the visa. There are several Schengen Member States that have or are in the process of outsourcing their visa services, at least in certain markets (such as the Netherlands in China, for example). China and the Russian Federation as key emerging outbound travel markets have become the focus of most outsourcing activities. Outsourcing the visa application procedure not only presents an advantage for the traveller, but also offers the Schengen Member States the opportunity to be more present in the source market and use the externally run visa service centers (VSCs) for additional national marketing activities. 5.2. Application Personal Appearance The compulsory personal interview in order to attain a Schengen visa presents considerable challenges for many applicants. For countries with large territories, such as China and the Russian Federation, individual travellers not living in cities with consulates are required to make additional trips to embassies just to carry out the personal interviews. The resulting additional costs and time are significant and often act an impediment even to apply. When surveying consulate staff in 2013, the European Commission found that 61% of all consulate employees interviewed indicated that applicants must appear in person. The majority of respondents reported that they also have agreements in place, allowing third parties to lodge an application.64 Box 5: The journey before the journey For the research, a person’s journey was described using a real applicant’s experience: Anna, a middle aged Russian woman has been travelling on a yearly basis from Wjasma (Russian Federation) to Berlin (Germany) for the past twenty years because she visits her friend Hans. In order to enter the Schengen Area, she is required to obtain a Schengen C visa. When applying, she has to travel to the German consulate in Moscow twice - once to apply in person, and again to pick up the approved visa. Just like any other applicant, she 64 European Commission (2013), Study on the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area, p. 26. 35 does not have the option to apply at a consulate of a different Schengen Member State or to go to a local authority for the interview. Consequently, every year that she makes a trip to Germany, she makes three trips in total. Wjasma is located 250 km away from Moscow, which is in total 4 hours commuting by train. Each return trip to Moscow takes a day. Despite the fact of the additional time and costs involved for the trips to the German embassy, Anna appreciates the changes to the visa application process. Two years ago, it was not possible to obtain an appointment with the German consulate; she was never sure how long she would have to wait for an application interview. Also, she never knew how long it would take to process her visa. Now, Anna can make an appointment with the German consulate ahead of time and knows that she will be able to apply for a visa on the day that she travels to Moscow. She also knows that her application will be processed within 10 to 14 days. Anna faces the same challenges as all the other travellers that want to come to the Schengen Area. In 2011, for example, 5.3 million Russian citizens filed visa applications for the Schengen Area. In the same year 1.1 million Chinese applied for applications. In large countries (in population and geographic space), where international tourism is increasingly affordable for the general population, applying for a Schengen visa takes days of planning, travelling, and money. A growing number of Chinese international travellers are from secondary cities, where there are usually not yet foreign consulates. It is not uncommon to have to fly to Beijing, stay the night, and return the next day after filing an application at a foreign consulate. As the popularity of international tourism continues to grow, so do the total costs of visa requirements. Supporting Documents The provision of documentation during the visa application process can be a barrier for potential applicants. From an employed Chinese citizen for example, a total of six supporting documents are generally asked for the Schengen visa application; each of them containing detailed information about the applicant.65 For each document required, third party institutions have to be contacted; hence, more than five external bodies are involved in the process, all of them needing certain time to issue the specific paper and probably also asking for a certain fee for the documents. The additional expense and time related challenges that derive from these application requirements force applicants to plan well in advance and to expect further costs for the application documents in addition to the application fee of 60 euros. As also identified by the European Commission is a strong need to harmonize the number of requested documents and to interpret consistently these requirements across the Schengen Member States. 65 Also depending on further components such as e.g. the age, employment and marriage status of the applicant. 36 5.3. Processing time Wait Time Wait time for applicants differs greatly between Member States of the Schengen Area. While the official processing time of a Schengen Visa is set at a maximum of 15 work days, the European Commission found that in the majority of cases, a decision is made within seven working days of the consulate receiving an admissible application.66 While Finland processes applications within two days, the Netherlands currently still falls into the category of Member States that take up to two or three weeks for processing applications. In 2011 and 2012, travel agents surveyed by the European Commission indicated that an average of 8% of all customers in both years had to cancel because their Schengen visa was not granted in time.67 Peaks and Seasonality It is not only external seasonal factors, such as the increased applications of Chinese tourists before the Golden Weeks in China, that present additional constraint for consulate staff. Internal factors, such as staffing during these peak seasons are challenging. As a consequence, visa applications that are considered more important, such student visas, are prioritized over short term visas for tourism purposes. According to the European Commission report, one-third of all consulates have no planning in place for peak seasons. From a tourism point of view, there is a strong need to address this issue.68 66 European Commission (2013), Study on the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area; p. 24. 67 European Commission (2013), Study on the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area; p. 69. 68 European Commission (2013), Study on the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area; p. 25. 37 6. Facilitation opportunities The analysis in this report confirms the enormous potential that lies within the current framework of the Schengen visa system. Although the Schengen structure can only be altered by the EU, procedural steps initiated individually by each Member State can improve the application procedures, creating preferences for the destination. The respondents of the survey undertaken by the European Commission showed that although almost half of the consulate respondents see no possibility for simplification, the other half does see room for improvements especially in the list of supporting documents and the requirements to meet in person at the consulate.69 The following recommendations are intended to compliment and extend the recommendations made already by the European Commission. From this research, the following themes for recommendations emerged: Improve delivery of information Facilitate the process to obtain a visa Adjust the characteristics of the application to the needs of the travellers Differentiate treatment to facilitate tourist travel Find alternatives for traditional paper visas Opportunity 1: Improve the delivery of information A. Mainstreaming visa information among all Member States The Schengen Area is widely perceived as one destination among international tourists. However, information about the Schengen visa application often has to be retrieved through several websites of different Member States or even external service providers. To minimize the time required to gather information and to avoid confusion, mainstreamed visa information on one common website provided by the European Commission explaining clearly and in different languages the application process while linking to the individual Member States would create a uniform image of the Treaty Area, while enhancing synergies and cost effectiveness. 69 European Commission (2013), Study on the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area, p.39. 38 B. Establishment of clear linkages between the website of the NTOs and Ministries of Foreign Affairs website Well established cross-links between the national tourism website and the Ministry of Foreign Affairs website that are clear and visible to travellers reduce time, effort and increase information reliability, trust and unity. C. Increasing different language options Whereas presenting certain information about the visa requirements on the NTO website is helpful for potential travellers, the websites of the Ministry of Foreign Affairs usually contain more detailed information. However, in many cases in the Schengen Area, Member States offer a greater number of languages on their NTO website and less on the Ministry of Foreign Affairs website. Especially for emerging tourism markets that are not yet as experienced as more mature markets, finding information in their mother tongue is crucial and ensures that all relevant documents and requirements are presented correctly and completely from the beginning of the application process. D. Improving customer service and communication Clear communication of visa application requirements, processes and timelines will help ensure that potential travellers are not unnecessarily deterred. Information online should therefore be up to date, readily available and reliable. This is also important for the travel trade. Opportunity 2: Facilitate the process to obtain a visa A. Finding alternatives for the personal interview In-person interviews can place a large cost burden on potential applicants, especially when travel is involved to reach the embassy or consulate. Although the prevailing opinion among embassy staff is that personal encounters with applicants allow quicker and more thorough decision making processes, implementing technological alternatives could help to evaluate applicants, eliminate additional difficulties for travellers and lift the pressure and work load of embassy staff. Initiatives such as the US pilot programme testing the use of secure, remote video conferencing technology to conduct interviews with those applying for tourist or business visa to the US, could be one such alternative.70 70 See also: http://www.eturbonews.com/36529/usa-visa-application-interview-electronic-video-conference. 39 B. Abolishing the necessity to apply at the applicable consulate As an alternative to the current requirement of applying at the consulate of the main destination within Schengen, the creation of Schengen Consulates as endorsed in the study of the European Commission can be an extended solution, allowing for more cost efficient and neutral assessment of the requisites, harmonizing procedures and criteria. This could significantly ease the application process making use of current infrastructure. It could also have the positive effect of reducing the existing differences between the number of visa applications and approval rates among the Member States. C. Increasing visa processing capacity One of the greatest deterrents to potential travellers is long and uncertain wait times. By investing in the capacity to process more visas, the Netherlands could remove this significant perceived obstacle to travellers. Many of the opportunities presented in this report can increase a country´s capacity to process a visa application. Greater capacities can be attained by opening visa processing centers and additional consulate services or by increasing the amount of flexible staff that can be positioned in different workplaces, depending on the demand. By doing so, the necessary flexibility and possible cost savings can be created and allow consulate services to concentrate on other pressing issues. Certainly, for cases in which the establishment of visa processing centers through external service providers are limited due to the political environment, this option remains challenging for Member States and requires a common approach that opens dialogues between the parties. D. Leveraging technology and other support measures to increase efficiency and speed of visa issuance and enhance security Besides the options presented above, the new electronic visa information system (VIS), which will be used in all EU consulates around the world by 2014, is expected to improve speed of visa processing and issuance for returning travellers to the Schengen Area.71 Further examples that increase the speed of the application process are the wider implementation of online submission of applications, the introduction of fast track systems linked to higher fees (justified by the measure and covering the costs), as well as the usage of accredited travel agents or other institutional agreements.72 Travellers would not necessarily see the increase of costs but the reduction of opportunity costs needed to obtain a visa. Especially in peak seasons and for trips on short notice, these options present valuable opportunities. 71 72 See also: http://ec.europa.eu/dgs/home-affairs/what-we-do/policies/borders-and-visas/visa-information-system/ See also recommendations 1 and 2 of the European Commission. 40 Opportunity 3: Adjust the characteristics of the application process to the needs of the travellers A. Simplifying and streamlining supporting documents Some required documentation for visas can be costly or time consuming, if not impossible to obtain. Through intelligent harmonization and standardization of forms, misunderstanding and frustration for both parties can be minimized. Especially where answers are provided in a closed format i.e. multiple choice, language barriers and inefficiencies can be reduced allowing applicants to see the information in his local language while management of the document could be handled automatically in a different language.73 B. Eliminating risks for the traveller due to the required documents Closely related to the preceding facilitation opportunity is the elimination of required documents that force aspirants to book the accommodation for the whole duration of the intended stay before applying for a visa. The costs involved while not knowing if the trip is possible creates undesired risks for potential travellers that can discourage them from a possible journey to the Schengen Area. Opportunity 4: Differentiate treatment to facilitate tourist travel A. Easing requirements for specific traveller segments Differentiation between source markets as well as establishing trusted traveller profiles for different traveller groups within the same market could be effective options in expanding visa facilitation measures. Not only is the Orange Carpet treatment one example of facilitated entry opportunities, countries that have implemented a visa waiver scheme mainly directed to cruise passengers are examples of such facilitation measures. In addition, guaranties/certificates distributed by, for example tour operators, stating that stipulated requirements are met which otherwise would be verified in detail by the consulate (as recommended by the European Commission74), can allow the Netherlands for faster application procedures. These can be valid for specific travel segments or in a more generic way. 73 Open questions are questions which cause freely formulated answers that can impede such an efficient management of documents. Thus, they should be used on separate exceptional documents in standardized languages only of applicants reply to standard form would not be possible. 74 See recommendation 5 of the European Commission. 41 B. Adjusting the usage and regulations regarding multiple entry visas (MEV) Currently, only certain Member States issue multiple entry visas for the Schengen Area. The study of the European Commission showed, that under the current visa regime, differences in the share of C visas and MEVs granted exist within the Treaty Area.75 In addition, the validity of the Schengen visa can currently not be changed according to the needs of the travellers. By increasing the flexibility of multiple entry visa conditions, more personalized visas can be granted, matching more effectually the purpose of the trip and creating increased visitor satisfaction. To reach this goal, the European Commission has correctly recommended the wider use, the increased validity, and the more flexible conditions of the multiple entry Schengen visa. 76 Opportunity 5: Find alternatives for traditional paper visa A. Institution of eVisa programmes A great opportunity, and by far the most cited during the interviews for this report, is facilitating travel through eVisas. Unlike traditional visas, there is no label or stamp needed in the passport or a physical presence required to obtain them. The European Commission has proposed a potential eVisa system for the Schengen Area that could ease significantly the entry procedure. Though globally still not widely used, UNWTO strongly endorses this position and recommends using eVisa systems wherever a traditional visa is still required. B. Institution of visa on arrival programmes Globally, the most common facilitation measure is visa on arrival. Out of all improvements introduced between 2010 and 2013, 60% were visa on arrival regimes. Though still an exception for the Schengen Treaty Area, visa on arrival could be of interest to the Netherlands. A well designed approach to cruises, business fairs, and short term stays for shopping for those using Schipol Airport as a hub could be considered. The general requirements for visa on arrival include a valid passport for the upcoming six months, a round-trip airplane ticket, and certain fees. Typically, this is available only to certain countries. For example, Indonesia offers visa on arrival to 64 countries while India offers the programme to eleven countries. The issuance of visas on arrival decreases the costs of obtaining a visa for travellers and these programmes are typically less costly than maintaining programmes outside the country for the issuing government, however still allows for control over who enters the country and for how 75 European Commission (2013), Study on the economic impact of short stay visa facilitation on the tourism industry and on the overall economies of EU Member States being part of the Schengen Area, p.40. 76 See recommendation 7,8,9 and 10 of the European Commission. 42 long. At this moment, there is no such programme instituted in the Schengen Area for certain source markets or traveller groups. C. Institution of visa waiver programmes Finally the institution of a visa waiver programme focused on selected traveller markets that are deemed to be low risk can further facilitate travel. Different form the option of creating specific traveller profiles for one market, visa waiver programmes can eliminate the necessity of a visa for entire markets. With fast changing traveller markets around the globe, regular (annual) reviews of possible visa waiver extensions for additional markets are desirable. The last visa waiver decisions made by the European Commission were in 2008; more are expected to come in the near future. 43