Latest News

New $250 visa fee risks deepening US travel slump

The new $250 visa integrity fee imposed on foreign travelers entering the United States could put more pressure on a struggling travel industry. This is because overseas arrivals are continuing to decline due to President Donald Trump’s immigration crackdown and his hostility towards many countries. According to U.S. Government data, overseas travel to the U.S. decreased 3.1% on an annual basis in July. This amounted to 19.2 millions visitors. This was the fifth consecutive month of declines this year. It defies expectations that inbound visitor numbers would surpass 79.4 millions by 2025. The new visa fee is set to take effect on October 1. This will add an extra hurdle for travelers coming from countries that do not have visa waivers, such as Mexico, Argentina and Brazil. According to the U.S. Travel Association membership organization, the extra fee brings the total visa to $442. This is one of the most expensive visitor fees in the entire world.

Gabe Rizzi is the President of Altour a global travel company. He said that any friction we add will reduce travel volume by a certain amount. As summer winds down, this issue will become more urgent. We'll need to include the fees in travel budgets and paperwork. According to the World Travel & Tourism Council, international visitor spending is expected to drop below $169 billion in this year. This compares to $181 billion spent in 2024. The fee is a further indication of a negative perception about the U.S., under Trump. His immigration policies, reductions in foreign aid, and tariffs have all contributed to a decline in the appeal of America as a tourist destination, even though major events such as the FIFA World Cup 2026 and the Los Angeles Olympics 2028 are on the horizon. Wednesday, the Trump administration proposed a government regulation aimed at tightening the duration of visas granted to students, cultural exchange guests and media members. The administration announced in early August that the U.S. would require bonds up to $15,000 on some tourist and business Visas. This pilot program will run for about a year. It is an attempt to crackdown on visa overstays. Tourism Economics, a consultancy from Oxford Economics, predicted in December 2024, that travel to the U.S. by overseas citizens in 2025 will increase more than 10% annually. Aran Ryan is the director of Tourism Economics' industry studies. He said that it was on track to decline 3%.

Ryan stated, "We view it as a sustained backward and we expect that much of it will be in place across the entire administration."

HARDEST HIT

The new visa fee will likely hit Central and South American nations the hardest, as they have been an exception for U.S. travelers this year.

According to the National Travel and Tourism Office, the number of Mexicans traveling to the U.S. is expected to increase by nearly 14% between May and 2025.

The number of arrivals from Argentina has increased by 20%, and those from Brazil have increased by 4.6%. Travel from Central America and South America increased by 3% each, while Western Europe saw a 2.3% decline.

Arrivals in China have been muted ever since the pandemic. July figures are still 53% lower than 2019 levels. Visa fees also threaten travel from India. Visits to India are down by 2.4% this year due to a drop of nearly 18% in students.

Some will simply absorb the increase in fees as another expense in an already costly trip to the U.S.

The U.S. is selective in its visitors. "If your financial status isn't good enough, it will be difficult to get a visa," said Su Shu of Moment Travel, a Chinese company in Chengdu.

U.S. tourists are concerned about the stricter requirements that may be imposed overseas, as foreign visitors pay higher entry fees. James Kitchen, owner and travel agent of Seas 2 Day & Travel, confirmed this concern.

Kitchen stated that "Travelers expressed concerns about reciprocal fees which may be imposed over the next few months".

(source: Reuters)