Tag Archives: International Air Transport Association

Premium Passports Lose Their Shine In Post Pandemic World

As parts of the globe cautiously begin to open up, the focus is on what travel freedom and global mobility will look like in a post–Covid-19 world. Last week the EU released a list of countries whose residents would be allowed entry into the bloc from 1 July based on coronavirus-related health and safety criteria. Included on the welcome list are countries such as Australia, Canada, Japan, and South Korea that traditionally score highly on the Henley Passport Index — the original ranking of all the world’s passports according to the number of destinations their holders can access without a prior visa. However, in a move perceived as a stinging rebuke for its poor handling of the pandemic, the US was notably excluded from the list, as were Brazil and Russia.

Although not reflected in the latest ranking, which does not take temporary travel bans into account, it is eye-opening to consider what travel freedom currently looks like for the holders of once-prestigious passports. For instance, before Covid-19 the US passport usually ranked within the top 10 on the Henley Passport Index in 6th or 7th place, with its citizens able to access 185 destinations around the world without requiring a visa in advance. However, under the current EU ban, the picture looks starkly different. US nationals now have roughly the same level of travel freedom as citizens of Uruguay (included on the EU’s list of welcome countries), which ranks 28th on the index, with a visa-free/visa-on-arrival score of 153. In another striking inversion, the US’s dramatic decline in passport power means that Americans find themselves with a similar level of travel freedom usually available to citizens of Mexico (25th on the index, with a score of 159), current travel bans notwithstanding, albeit temporarily.

This is one of many extraordinary shifts in passport power caused by the temporary pandemic-related bans. Brazilian passport holders, for example, find their passport strength greatly diminished. The country usually ranks highly on the index ¾ most recently placed 19th, with a visa-free/visa-on-arrival score of 170 ¾ but the loss of access to the EU means Brazilians currently have roughly the same extent of travel freedom as citizens of Paraguay (36th on the index, with a score of 142).

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Without taking the various travel bans and restrictions into account, Japan continues to hold the number one spot on the Henley Passport Index with a score of 191. Singapore remains in 2nd place with a score of 190, while Germany and South Korea are in joint-3rd place, each with a score of 189. Both Japan and South Korea have been included on the EU’s list of ‘safe’ countries, while Singapore has been excluded, which means Singaporean passport holders currently have far less travel freedom than their closest competitors on the index, which is based on exclusive data from the International Air Transport Association (IATA). 

Dr. Christian H. Kaelin, Chairman of investment migration firm Henley & Partners and the inventor of the passport index concept, says the EU’s recent decision will have far reaching effects. “As we have already seen, the pandemic’s impact on travel freedom has been more drastic and long lasting than initially anticipated. This latest decision by the EU indicates that there is more upheaval to come. Look at the US passport, for example ¾ in 2014, it held the number one spot in the world on our index, but US nationals currently have far less travel freedom than most citizens of other wealthy, industrialized nations and even of some less developed nations, being effectively locked out of Europe. We see an emergence of a new global hierarchy in terms of mobility, with countries that have effectively managed the pandemic taking the lead, and countries that have handled it poorly falling behind.”

Immigration controls in US and UK tighten amid calls for co-operation

While the US looks set to be significantly affected by the EU’s latest decision, it has issued stringent immigration controls of its own over the past few months. Greg Lindsay, Director of Applied Research at NewCities, says that the Trump administration’s temporary suspension of all work visas will have far-reaching effects. “The executive order, signed on the 22 June, will bar as many as 525,000 foreign workers from entering the country for the rest of the year.” As Lindsay points out, this decision is only the latest salvo in White House aide Stephen Miller’s years-long campaign to curtail worker visas, arguing that they harm employment prospects for Americans.

In the UK, the pandemic’s effect on mobility has also been severe. Robert McNeil, Deputy Director of the Migration Observatory at the University of Oxford, says that the almost complete cessation of international arrivals into the country has generated serious challenges for industries that have become dependent on seasonal migrant workers from the EU. McNeil says that despite public attitudes around immigration softening, the Brexit process has not slowed down. “In May, the government pushed through the new Immigration Bill, paving the way for a new ‘points-based’ immigration system. The new restrictions would prevent many people from becoming key workers in the UK in future. Around half of the EU citizens currently in key worker positions in the UK would not meet the new salary and skills thresholds required to move to the country from 2021.”

Changing priorities in a transformed world

As premium passports lose their shine in a post-Covid world, experts suggest that the crisis is likely to make international mobility more restricted and unpredictable in the longer term. “Even as countries open their borders, it is expected that numerous governments will use epidemiological concerns as a justification for imposing new immigration restrictions and nationality-targeted travel bans that will mainly be aimed at citizens of developing countries,” says Prof. Dr. Yossi Harpaz, Assistant Professor of Sociology at Tel Aviv University. Noting the recent decision by the EU with respect to the US and other countries, Harpaz says, “The passports of both developing and developed nations stand to decrease in value, at least temporarily. In such uncertain times, global demand for dual citizenship and investor visas is expected to increase.”

Discussing the impact of the pandemic on global migration trends, Charles Phillips, researcher and consultant for Oxford Business Group, suggests that environmental health concerns could become a priority for those seeking alternative residence or citizenship. “We can expect places that are governed well and better equipped to deal with pandemics to become destinations people will seek to move to. Just as travel choices will likely be more strongly influenced by health considerations, we may see those acquiring alternative residence or citizenship placing a greater emphasis on a country’s health policies when deciding where to reside.”

Dr. Juerg Steffen, CEO of Henley & Partners, says the growing demand for additional residence and citizenship options comes as no surprise. “We have seen extraordinary upheaval over the past few months, with many certainties falling away. For investors and their families, having a second citizenship or an alternative residence is an even more precious asset than ever before, as concerns over access to first-rate healthcare, global mobility, and quality of life take on a new urgency. In turn, investment migration programs provide invaluable economic security to the countries that offer them.

As we enter the worst recession since the Great Depression, a small country like Montenegro, for instance, is better equipped to weather the storm. The recently launched Montenegro Citizenship-by-Investment Program provides permanent access and the right to stay in this beautiful and safe European country. It also provides the country with an immediate liquidity injection of much needed debt-free foreign capital that can be used to buffer the impact of the pandemic and create significant societal value.” For the Silo, Sarah Nicklin.

About the 2020 Henley Passport Index

Boasting cutting-edge expert commentary and historical data spanning 15 years, the Henley Passport Index is the original ranking of all the world’s passports according to the number of destinations their holders can access without a prior visa. The ranking is based on exclusive data from the International Air Transport Association (IATA), which maintains the world’s largest and most accurate database of travel information, and it is enhanced by extensive, ongoing research by the Henley & Partners Research Department.  Along with the Kälin  – Kochenov Quality of Nationality Index, it is considered a major reference tool for global citizens and the standard reference for governments in this field.

About Henley & Partners

Henley & Partners is the global leader in residence and citizenship planning. Each year, hundreds of wealthy individuals and their advisors rely on our expertise and experience in this area. The firm’s highly qualified professionals work together as one team in over 30 offices worldwide.

The concept of residence and citizenship planning was created by Henley & Partners in the 1990s. As globalization has expanded, residence and citizenship have become topics of significant interest among the increasing number of internationally mobile entrepreneurs and investors whom we proudly serve every day.

The firm also runs a leading government advisory practice that has raised more than USD 8 billion in foreign direct investment. Trusted by governments, the firm has been involved in strategic consulting and in the design, set-up, and operation of the world’s most successful residence and citizenship programs.

Record-Breaking Global Mobility Grounded By COVID-19 Pandemic

With global travel almost at a standstill, the latest results of the Henley Passport Index offer disturbing insight into the indiscriminate havoc caused by the COVID-19 pandemic. Since its inception in 2006, the index has provided the authoritative annual ranking of global passport strength. Travel freedom has increased dramatically over the period in 2006, a citizen could travel to 58 destinations on average without a visa from the host nation; 14 years later, this number has almost doubled to 107. 

The first ranking of the new decade published in January this year conclusively confirmed that overall, people were the most globally mobile than we had ever been in the history of humankind, with the top-ranking passport (Japan) offering its holders access to a record-breaking 191 destinations without requiring a visa in advance. Just three months later, the picture looks very different indeed.

Australia's Coronavirus Travel Bans Feed Old Fears
The result of the latest travel ban in Australia. Image: jacobinmag.com

Japan’s passport continues to hold the top spot on the Henley Passport Index as we enter the second quarter of 2020, but the reality is that current stringent travel restrictions mean that most non-essential travel for Japanese nationals is heavily curtailed.

This is true for almost every country of course, as more travel bans are implemented daily, and ever-more stringent coronavirus lockdown regulations are imposed by governments worldwide. With 3.5 billion people, nearly half the global population, presently living in voluntary or mandatory confinement, the latest results from the index — which is based on exclusive data from the International Air Transport Association (IATA) — raise challenging questions about what travel freedom and global mobility really mean, both currently and in a deeply uncertain post-pandemic future.

Dr. Christian H. Kaelin, Chairman of Henley & Partners and the inventor of the passport index concept, points out that in an unprecedented global health emergency such as this, relative passport strength becomes temporarily meaningless. “A Swiss citizen can, in theory, travel to 185 destinations around the world without needing a visa in advance, but the last few weeks have made it apparent that travel freedom is contingent on factors that occasionally can be utterly beyond our control. This is, of course, something that citizens of countries with weak passports in the lower ranks of the index are all too familiar with. As public health concerns and security rightfully take precedence over all else now, even within the otherwise borderless EU, this is an opportunity to reflect on what freedom of movement and citizenship essentially mean for those of us who have perhaps taken them for granted in the past.”

Q&A: New travel ban shakes up airlines, passengers - NEWS 1130
Image: citynews1130.com

The future of international mobility after COVID-19

Commenting on the latest Henley Passport Index, bestselling author and the Founder and Managing Partner of FutureMap, Dr. Parag Khanna, says the combined effect of the COVID-19 pandemic on public health, the global economy, and social behavior could lead to much deeper shifts in our human geography and future distribution around the world. “This may seem ironic given today’s widespread border closures and standstill in global transportation, but as the curtain lifts, people will seek to move from poorly governed and ill-prepared ‘red zones’ to ‘green zones’ or places with better medical care. Alternatively, people may relocate to places where involuntary quarantine, whenever it strikes next, is less torturous.

In the US, both domestic and international migration were surging before the pandemic, with Gen-Xers and millennials shifting to cheaper, second-tier cities in the Sun Belt or abroad to Latin America and Asia in search of an affordable life.

Once quarantines lift and airline prices stand at rock bottom, expect more people across the globe to gather their belongings and buy one-way tickets to countries affordable enough to start fresh.”

This is supported by emerging research and analysis commissioned by Henley & Partners, which suggests that despite freedom of movement currently being restricted as a temporary measure, there is a risk that this will negatively affect international mobility in the long run. Political science researchers Uğur Altundal and Ömer Zarpli of Syracuse University and the University of Pittsburgh, respectively, note that public health concerns have historically been used to justify restricting mobility, but governments usually adopt travel restrictions temporarily, in response to short-term health needs. Until now, health security has not been a significant determinant or requirement when negotiating visa waivers, but Altundal and Zarpli warn that “increasing public health concerns due to the outbreak of COVID-19 may change thisthe quality and level of health security of a country could be a significant consideration for visa waivers in future”. The unprecedented and overwhelming focus on health security and pandemic preparedness we now see may change the face of global mobility forever.

On the other hand, Prof. Simone Bertoli, Professor of Economics at CERDI, Université Clermont Auvergne in France, says that the necessity of international collaboration in fighting the pandemic could ultimately reduce current barriers to international mobility. “Humanity is confronted with a truly global challenge against which no country ­— irrespective of its level of income — can fully protect itself. This pandemic could therefore trigger renewed and more intense international cooperation, something that has (so far) not happened with the other main global challenge that the world is currently facing, namely climate change.”

No Official Travel Ban In The U.S., But Isn't It Time To Self-Ban?

Brexit, travel bans, and changing timelines

The chaos caused by the COVID-19 pandemic has cast further doubt on the timeline for the implementation of the UK’s post-Brexit immigration system, according to Madeleine Sumption, Director of the Migration Observatory at the University of Oxford. The UK, currently in 7th place on the Henley Passport Index, with citizens theoretically able to access 185 destinations without acquiring a visa in advance, was set to end free movement with the EU in January 2021. However, as Sumption says, “The UK can only implement its new immigration system when the post-Brexit ‘transition period’ is over, and if this is extended to give negotiators more time to discuss trade and other issues, we may not be seeing the end of free movement with the EU quite yet.”

In the US, also in 7th place on the Henley Passport Index, the impact of travel bans implemented at the beginning of the year appear to have been compounded by the pandemic, according to Greg Lindsay, Director of Applied Research at NewCities. “For the children of a rising global middle class with more and more options, this pandemic may prove to be the tipping point in terms of choosing educational destinations. When the world gradually recovers with China, South Korea, and Singapore already succeeding in slowing the outbreak through effective quarantines don’t be surprised if the best and brightest take coronavirus responses into consideration when deciding on their future options.”

A unique hedge against volatility in an uncertain future

Commenting on the ever-expanding growth and popularity of the investment migration industry, Dr. Juerg Steffen, CEO of Henley & Partners, says: “We believe that in the post COVID-19 environment, investment migration will take on a dramatically enhanced importance for both individual investors and sovereign states. Acquiring alternative residence or citizenship will act as a hedge against the significant macro-economic volatility that is predicted, creating even more sovereign and societal value across the world.” For the Silo, by Sarah Nicklin.

Supplemental

Global Headlines for Q2 2020: growth in travel freedom over past decade

  • Japan retains its top spot on the Henley Passport Index, with a visa-free/visa-on-arrival score of 191. Over the past decade its travel freedom score has increased by 31 points: in 2010, the country was ranked 6th worldwide, with a visa-free/visa-on-arrival score of 160.
  • Singapore continues to hold onto 2nd place, with a visa-free/visa-on-arrival score of 190. Over the past decade Singapore’s travel freedom score has increased by 35 points: in 2010, the country was ranked 11th worldwide, with a visa-free/visa-on-arrival score of 155.
  • Germany remains in 3rd place, with access to 189 destinations compared to the 161 destinations its passport holders were able to access a decade ago. It shares 3rd position with South Korea, which has increased its travel freedom score by 38 points: in 2010, South Korea was ranked 13th worldwide, with a visa-free/visa-on-arrival score of 151.
  • The UK is currently ranked 7th on the index, with a visa-free/visa-on-arrival score of 185. Over the past decade the UK’s travel freedom score has increased by 19 points: in 2010, the country was ranked 1st worldwide, with a visa-free/visa-on-arrival score of 166.
  • The US is also currently ranked 7th on the index, with a score of 185. Over the past decade, the US’s travel freedom score has increased by 26 points: in 2010, the country was ranked 7th worldwide, with a visa-free/visa-on-arrival score of 159.
  • The UAE has seen the biggest increase in travel freedom over the past 10 years. In 2010, the country was ranked 65th worldwide, with a visa-free/visa-on-arrival score of 64. It is now ranked 18th, with a score of 171  which means the country has added a remarkable 107 visa-free travel destinations over that period.