The Henley Passport Index 2024 has just been released, ranking passports on their visa-free access to global destinations. For businesses eyeing international expansion, this list could inform your sense of strategic opportunities and challenges.
Kevin Nkrumah, 9 August
The latest Henley Passport Index is here, offering a glimpse of the current state of international mobility.
This index, created by Henley Partners, ranks passports by their visa-free access to the largest percentage of world GDP. It’s a valuable tool for companies planning to expand globally.
This year, Singapore tops the list, offering its citizens visa-free access to 195 destinations, surpassing previous leaders like Japan, Germany, and Spain.
The UK has also climbed back into the top four, highlighting its strong global mobility credentials.
But what does this mean for companies looking to expand internationally? Let’s explore how these rankings can influence your global strategy.
Understanding the Passport Index
What is the Henley Passport Index?
The Henley Passport Index is a ranking of global passports based on the number of destinations passport holders can access without a prior visa. This ranking is compiled using exclusive data from the International Air Transport Association (IATA) and augmented by continuous research. It is a valuable resource for understanding passport power and travel freedom in the global mobility landscape.
Why Is It Important for Companies?
For businesses aiming to enter new markets, the passport index is more than a travel guide. It reflects global political dynamics, economic stability, and diplomatic relations. Countries with stronger passports often have better international relations and economic conditions, making them attractive destinations for investment and corporate expansion.
Hiring Strategies: The Passport Power Factor
Should You Hire Workers with Strong Passports?
The rise of Singapore and the UK in the passport rankings poses a question for global mobility teams: is it time to focus on hiring workers with strong passports? While a powerful passport can simplify business travel, it’s important to remember that visa-free access usually doesn’t cover formal economic activities. Companies must still navigate local work permit requirements.
Benefits of a Diverse Global Workforce
Hiring employees from countries with powerful passports can ease international assignments and make business operations smoother. Workers with strong passports can move more freely across the globe.
While substantive assignments like project work will still require full work permits, countries like the UK, Singapore and Malaysia allow visa-free travel for the purpose of attending conferences, holding business meetings and even signing contracts. In this context, employees holding favoured passports can grease the wheels of international trade and collaboration – though, of course, passport power is no substitute for skills and experience.
Expansion Opportunities in Top-Ranked Countries
Is It Time to Expand into Countries with Strong Passports?
Countries with powerful passports, like Singapore, offer attractive opportunities for corporate expansion. Their strong diplomatic ties and visa waiver agreements create a business-friendly environment that can attract investment and foster growth.
What Are the Incentives for Expansion?
Expanding into these markets can provide economic benefits and access to a skilled workforce. Many top-ranked countries offer incentives for foreign companies, such as tax benefits and streamlined business regulations. These advantages make them appealing destinations for companies seeking new markets and growth opportunities.
Making Sense of the Global Mobility Gap
The Henley Passport Index is a useful indicator for companies who already have a strong multinational presence.
Understanding the Economic-Geopolitical Context
The Henley Passport Index provides a snapshot of changes in the economic and political landscape. Shifts in passport rankings can reflect broader trends, such as geopolitical tensions or economic growth. Countries facing an economic or political crisis might see their passport power decline, while stable and prosperous nations tend to climb the ranks.
For instance, worldwide outrage at Russia’s 2014 annexation of Crimea and 2022 invasion of Ukraine has sent its ranking fall from 41st in 2013 to 53rd in the most recent rankings. Crisis-struck Venezuala has fallen a full 20 places over the same period.
In other cases, reciprocity and bridge-building can elevate nations’ rankings. Singapore’s top position highlights its strong diplomatic ties and generous visa policies. This contrasts with countries like the US and Japan, where visa reciprocity is more limited.
Impact on Global Mobility Programs
Global mobility teams should monitor the implications of relative passport strength for their international assignments and workforce management.
In a wider sense, it’s always useful to stay informed about visa policies, compliance requirements, and geopolitical developments affecting international trade.
As countries like Germany and Japan slip in rankings due to stricter immigration policies, businesses may want to reassess their centres of focus in these regions.
Moreover, emerging markets such as the UAE, which ranks highly in openness, present new opportunities for growth.
Leveraging the Henley Passport Index for Success
The Henley Passport Index is a useful weathervane for your mobility and expansion strategy. By understanding passport power and the factors shaping the current state of global mobility, businesses can make informed decisions about hiring, expansion, and international operations.
Centuro Global is here to help you finesse your international mobility strategy. Our experts are always on hand to clear up the more opaque aspects of doing business abroad and help you enter new markets with confidence.
