India-UAE-US travel: H1B visa changes confuse many as cancellations spike

Dubai - Travel companies across the UAE are grappling with a wave of cancellations and panic bookings following the United States government, under Donald Trump’s leadership, announcing changes to the highly coveted H1B visa requirements.

Travel agents in the UAE, India, and other nations reported immediate disruption to US outbound and inbound travel from the region.

Over the weekend, several passengers departing from airports in the US chose to deboard from the aircraft shortly before departure, fearing they might be barred from returning to the US without paying the $100,000 “entry fee”. Gulf News has reached out to the airlines and is awaiting comment.

The proclamation, signed after markets closed on Friday evening, requires a payment of $100,000 to supplement H1B petitions for new applications, effective from September 21 for 12 months. While the rule applies prospectively and won’t impact existing visa holders, the announcement has created widespread uncertainty among travellers.

“There was a bit of a panic situation immediately after the announcement," said Bharat Aidasani, Managing Director of Pluto Travels. "All passengers on H1B visas were hesitant and scared that they wouldn’t be allowed to enter the US. Airlines were making announcements on flights as well.”

Aidasani reported that his company received a group cancellation of 14 passengers late Friday evening, with several H1B visa holders amongst them expressing concerns about re-entry to the United States.

The impact was challenging for Indian nationals transiting through Dubai’s major hub airport. “Passengers originating from India are among the most impacted,” confirmed Mohammed Rishal PV, Executive Director of Arooha Leisure.

Travel industry sources indicate that technology companies and law firms bore the brunt of the immediate impact, with employees reluctant to travel outside the US despite holding valid visas.

“We’re hearing a lot from people in the US about outbound travel - they don’t want to travel back until they have clarity on the rules and regulations,” Aidasani explained. “Relatives who wanted to come for events are now postponing their plans,” he added.

Ahmed Soliman, CEO of TCA Group, noted the broader implications for US leisure travel: “This affects US residents’ leisure travel. There were cancellations of people departing from the US, and outbound US leisure travel has seen a drop-off.”

The uncertainty has extended beyond H1B holders, with travel agents reporting a decline in B1/B2 tourist visa applications, signalling a broader drop in US-bound tourism from the region.

“Tourist visa applicants have also come down, and new applicants are also low. The next available appointment slot is at the end of 2026," Rishal said, highlighting the longer-term implications for US tourism from the UAE and India.

Travel companies are witnessing a shift in destination preferences as passengers reassess their travel plans.

"A lot of people who had planned trips are now changing their destination to Canada," said Sapna Aidasani from Pluto Travels. "There’s a lot of uncertainty going on. People are saying, 'I'm not going to the US' and choosing Canada instead."

The European market continues to perform strongly despite the US disruption. "Europe is still doing very well - Italy is number one, followed by Spain, Switzerland, and the UK to some extent," Soliman said.

Travel agents are adopting a wait-and-see approach as the dust settles on the new regulations. “Things are better since there is clarity, but people who had visas have now changed their plans,” Aidasani observed.

The October 1 implementation of additional fees is expected to provide more clarity on the practical impact of the new rules. "After October 1, it will become clearer how to apply for US visas. We will wait and watch,” Rishal said.