An increasing number of countries are making health insurance compulsory as part of the visa application process, adding another layer of cost for travellers. While the measure is intended to protect public health systems and limit financial risk, agents say it often results in duplicate cover and unnecessary expense.
Several destinations that are easily accessible to South Africans have introduced mandatory insurance, making them slightly more expensive to visit. South Africans can travel visa free to Zanzibar and Georgia, but in 2024 Zanzibar introduced compulsory insurance starting at $44 (R705) per person, while Georgia introduced insurance from €2,70 (R50) per day earlier this year. South Africans can obtain a free e-visa for Turkey but, as of this year, are required to pay a $12 (R192) insurance fee.
Agents believe the move could signal a broader shift in visa and entry policies. “After Covid, many countries are more cautious about health risks. Governments also want to protect their health systems and control costs,” said Anitta Mtsweni, Head of the Visa Division at Visaline.
Jenny Kutlu, Owner of JMC Travel, believes the financial incentive could encourage wider adoption. “If one country can do it, why not all? They will realise the financial benefits,” she said.
Double the cost
In many cases, travellers already hold comprehensive travel insurance, making mandatory cover a duplicate expense.
“It becomes an extra cost for clients. Many travellers already have travel insurance, so now they must pay again. This makes the trip more expensive and sometimes confusing for clients,” said Mtsweni.
Additionally, often the mandatory insurance is not as comprehensive as other insurance policies, added Glenda Ingram, Owner of West Beach Travel. “It doesn’t cover the extras like cancellations, delays and baggage. Therefore, travellers have to take out additional travel insurance to cover that and end up paying for two policies,” said Ingram.
Limiting costs
While the insurance may help reduce pressure on public health systems, Ingram and Kutlu believe countries should rather make insurance a mandatory requirement.
“Countries should just make a travel insurance policy mandatory to show at check-in or on entry – at least then the client is not paying double premiums and can buy their own comprehensive insurance. I doubt they will do that because their mandatory insurance is also a source of revenue for them,” said Ingram.
According to Kutlu, medical protection does play a role, but ultimately countries benefit from the revenue. “It can be about health protection as medical facilities and practitioners are feeling the strain and medical costs can be high. Instead, countries that offer visa free entry or a free e-visa should implement as a system that proves travellers have valid travel insurance,” said Kutlu.
Does this affect demand?
These additional costs could affect demand however, the impact could be limited if they remain low, with Ingram noting that budget clients may be worst affected and could be swayed to travel to a different destination to save on costs.
“If the insurance cost is high, it can reduce demand because clients compare prices with other destinations. But if the cost is small, it may not affect it too much,” added Mtsweni.
With regards to Turkey, Kutlu believes the mandatory insurance makes Turkey less attractive as a stop-over destination. “For long stop-overs in Istanbul, Turkey offers free accommodation and free day tours. These do not look that attractive now if one has to pay $12, especially for a free tour that is maybe eight hours,” said Kutlu.
