Canada-India tensions devastate tourism sector as visa halt upends travel plans

Tour guides and travel workers face income loss and financial hardship; Canadian retirees lose non-refundable payments for dream vacations.
Their dreams have been shattered because they cannot get a visa.
A Vancouver travel agent describes the impact on retired Canadian clients who saved for decades to visit India.
Mark

So the visa halt is the immediate problem, but it sounds like there's a whole chain of people affected—not just the tourists who can't go.

Mimi

Exactly. The tour guides, the drivers, the travel agents—they all depend on that flow of Canadian visitors. And it hit right at the start of peak season, which is the worst possible timing.

Luke

How many Canadian tourists are we actually talking about? The source says 277,000 in 2022, but that's the total. Do we know what percentage of India's tourism that represents?

Mimi

The source doesn't break that down. We know Canada is in the top five, but not the exact share of the market.

Mark

And the $4 to $5 million loss at that one travel agency—is that typical, or is that company particularly exposed to Canadian clients?

Mimi

The source doesn't compare it to other agencies. Karnai's company had 500 people booked, with only 10 percent holding visas. That's a specific vulnerability.

Luke

Right. We don't know if other agencies have better visa ratios or if they've diversified their client base more. That $4 to $5 million is real, but it might not be representative of the whole sector.

Mark

What about the lentil trade? That seems like it could be a much bigger economic issue than tourism.

Mimi

It could be. Canada supplies over half of India's lentil imports, and India's been buying heavily because of their own drought. But Kothari, the industry chairman, says he doesn't think politics will disrupt it—unless things get worse.

Luke

That's the key phrase: "unless it worsens further." He's hedging because he doesn't actually know. The trade relationship is important enough that both countries might protect it, but there's no guarantee.

Mark

So we're in a waiting period. Nobody knows how far this will go.

Mimi

That's the honest answer. The immediate damage to tourism is clear and documented. The potential damage to trade is real but speculative.

Luke

And the human cost—the tour guides, the retirees who paid non-refundable deposits—that's happening right now, regardless of what happens next.

  • India's suspension of visa processing for Canadians, triggered by Prime Minister Trudeau's allegations of Indian involvement in the killing of Sikh activist Hardeep Singh Nijjar, struck at the worst possible moment — the opening of India's October-to-March peak travel season.
  • Tour guides like Yajur Chauhan, already hollowed out by two pandemic years, watched their calendars empty overnight, while drivers who depend on Canadian tourists completed zero trips by mid-October in a season that normally brings four or five.
  • A single Vancouver travel agency lost between $4 and $5 million in bookings, leaving hundreds of retirees — many holding non-refundable deposits worth tens of thousands of dollars — unable to reach the Taj Mahal they had spent lifetimes saving to see.
  • Beyond tourism, the dispute casts a shadow over a lentil trade worth hundreds of millions of dollars annually, with Canada supplying more than half of India's imports of a staple that appears in virtually every Indian meal.
  • Industry leaders in India's pulses sector argue the trade is too vital to become a political casualty, but their reassurances carry a quiet caveat: further escalation could change everything.

When nations quarrel, it is rarely the diplomats who bear the heaviest cost. The rupture between Canada and India — sparked by allegations of state-linked violence on Canadian soil — has suspended visa processing for Canadian citizens, arriving precisely as India's peak tourism season opened its doors. From a Mughal tomb standing nearly empty in Delhi to a Vancouver travel agency absorbing millions in losses, the human consequences of geopolitical friction are being counted not in communiqués but in cancelled bookings, depleted savings, and shattered retirement dreams.

Yajur Chauhan has spent more than 25 years guiding Canadian tourists through India's Mughal monuments. On a weekday morning in early October, he stood alone at Humayun's Tomb, his calendar emptied almost overnight. The cause was diplomatic: after Prime Minister Justin Trudeau publicly alleged Indian government involvement in the June killing of Sikh-Canadian activist Hardeep Singh Nijjar in Surrey, British Columbia, India suspended visa processing for Canadian citizens. For Chauhan, already drained by two pandemic years of cancellations, the timing was devastating. "I'm helpless," the 52-year-old told CBC News.

The damage spread quickly through India's travel economy. Chandar Bhan, a Delhi driver who specializes in Canadian tourists, normally completes four or five trips by October. By mid-October he had completed none. Canada ranks among the top five source countries for tourists to India, with more than 277,000 Canadians visiting in 2022 — a figure that made the visa halt feel like a door slamming shut at the very moment the season was opening.

For travel agencies, the losses were staggering. Nazir Karnai, president of Explore India Journeys in Vancouver, had over 500 clients booked for the October-to-March window. Ninety percent lacked visas when processing stopped. Most were retirees who had saved for decades, some carrying non-refundable deposits of tens of thousands of dollars. His company alone absorbed $4 to $5 million in cancelled bookings. "They have saved every single penny all their life to fulfil their dream," Karnai said, "and now their dreams have been shattered."

The dispute also reached into Indian kitchens. Canada supplies more than half of India's lentil imports — a staple present in virtually every meal. From April to July 2023, Indian imports of Canadian lentils surged 420 percent year-over-year, driven by a domestic drought that cut India's own harvest by 20 percent. Mumbai cook Bharti Jadhav, who prepares meals for five families, put it simply: dal appears in every single meal, every single day.

Some Canadian lentil exporters expressed anxiety about whether Indian buyers would hesitate on future contracts. Yet Bimal Kothari of the India Pulses and Grains Association argued the trade was too essential to become a political casualty — adding a careful qualifier that left the door open to uncertainty: "Then we do not know what may happen." The full cost of the rift, for workers, retirees, and dinner tables alike, remains contingent on whether the two governments find a way back toward each other.

Yajur Chauhan stood alone at Humayun's Tomb on a weekday morning in early October, watching the 16th-century Mughal monument sit nearly empty. For more than 25 years, he has guided groups of Canadian tourists through these halls, explaining the architecture and history to visitors who saved for years to make the trip. That morning, there was no one to guide. His calendar had emptied almost overnight.

The reason was diplomatic: Canada's Prime Minister Justin Trudeau had publicly alleged that Indian agents were involved in the killing of Hardeep Singh Nijjar, a Sikh activist and Canadian citizen shot outside a gurdwara in Surrey, British Columbia, in June. India responded by halting visa processing for Canadian citizens—a move that landed squarely on the shoulders of people like Chauhan, who had already weathered two years of pandemic-driven cancellations that depleted his savings. "All of my tours are now getting cancelled," the 52-year-old told CBC News. "Nobody is coming because of the visa issues. I'm helpless."

Chauhan was far from alone. Chandar Bhan, a 38-year-old driver in Delhi who specializes in ferrying Canadian tourists, normally completes four or five trips by October during India's peak travel season, which runs from October through March when the weather cools. By mid-October, he had completed none. "There is no other work," he said. The timing was brutal: Canada ranks among the top five countries sending tourists to India, with more than 277,000 Canadians visiting in 2022, up sharply from 80,000 in 2021 as travel resumed after lockdowns. The visa suspension hit just as the industry's busiest season was beginning.

For travel agencies, the impact was measured in millions. Nazir Karnai, president of Explore India Journeys in Vancouver, had more than 500 clients booked to travel between October and March. Only 10 percent held visas issued before the processing halt. Most were retirees who had saved for decades to see the Taj Mahal and other iconic sites. Some had paid tens of thousands of dollars in non-refundable deposits. "They have saved every single penny all their life to fulfil their dream," Karnai said, "and now their dreams have been shattered." His company alone lost between $4 million and $5 million in cancelled bookings. Beyond the financial toll, Karnai found himself trying to reassure frightened clients that India remained safe, even as political animosity between the two countries deepened.

The economic damage extended beyond tourism. Canada supplies more than half of India's lentil imports—a staple so fundamental to Indian cooking that meals are considered incomplete without them. Last year, India imported $370 million worth of goods from Canada, with lentils making up the majority. From April to July 2023, Indian imports of Canadian lentils jumped 420 percent compared to the same period in 2022, driven by severe drought that had reduced India's own harvest by 20 percent and sent prices climbing. In homes across India, including those of Bharti Jadhav, a cook in Mumbai who prepares meals for five families, lentils appear in every single meal. "At least 250 grams of dal are used in every household," the 30-year-old said, using the Hindi word for lentils. "And not just one kind of dal, all kinds."

Two Canadian lentil exporters told Reuters they were anxious about whether Indian importers would hesitate to complete future purchases. Yet some industry leaders downplayed the risk. Bimal Kothari, chairman of the India Pulses and Grains Association, argued that the lentil trade was too economically important to become collateral damage in a political dispute. "I don't think that this political situation will have much impact on the lentils trade unless it worsens further and further," he told CBC News. "Then we do not know what may happen." The qualifier hung in the air—a reminder that the full consequences of the diplomatic rift remained uncertain, dependent on whether tensions continued to escalate or began to ease.

All of my tours are now getting cancelled. Nobody is coming because of the visa issues. I'm helpless.
— Yajur Chauhan, tour guide with 25 years of experience
They have saved every single penny all their life to fulfil their dream to see the Taj Mahal, and now their dreams have been shattered because they cannot get a visa.
— Nazir Karnai, president of Explore India Journeys travel agency
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