New $250 Visa Fee Could Worsen U.S. Travel Slump

 

The United States is about to roll out a new $250 “visa integrity fee” for many international travelers, a move that industry experts warn could further weaken an already struggling

tourism sector.

Starting October 1, visitors from countries outside the U.S. visa waiver program — including Mexico, Argentina, India, Brazil, and China — will face the extra charge. That raises the total cost of a U.S. visa to $442, among the highest visitor fees in the world, according to the U.S. Travel Association.

The timing is tough. International arrivals to the U.S. fell 3.1% in July compared to last year, with just over 19 million overseas visitors. It marked the fifth monthly decline of 2025, despite earlier hopes that travel would finally bounce back above pre-pandemic levels.

“Any friction we add to the traveler experience is going to cut travel volumes by some amount,” said Gabe Rizzi, president of Altour, a global travel management company. “As the summer ends, this will become a more pressing issue, and we’ll have to factor the fees into travel budgets and documentation.”

Spending by international visitors is also slipping. The World Travel & Tourism Council expects foreign travelers will spend less than \$169 billion in the U.S. this year, down from $181 billion in 2024.

Industry analysts say the new fee adds to a growing sense that America is becoming a less welcoming destination under President Donald Trump. His administration has taken a hard line on immigration, cut foreign aid, expanded tariffs, and recently proposed new visa restrictions for students, journalists, and cultural exchange visitors. Earlier this month, the U.S. also began a pilot program requiring some travelers to post bonds of up to $15,000 to curb overstays.

Tourism Economics, an Oxford Economics consultancy, had predicted a strong rebound in 2025, with overseas travel rising more than 10%. Instead, it now projects a 3% decline. “We see it as a sustained setback,” said Aran Ryan, the firm’s director of industry studies. “And we anticipate much of it is in place throughout the administration.”

Who’s Hit the Hardest

The steepest impact may fall on Central and South American travelers, who had been one of the few bright spots for U.S. tourism this year.

Visits from Mexico were up nearly 14% through May, while arrivals from Argentina jumped 20% and Brazil 4.6%. Travel from Central America overall grew 3%, and South America inched up 0.7%. In contrast, Western Europe saw a 2.3% drop.

China remains a sore spot. Visitor numbers are still more than 50% below 2019 levels, and India — another important market — has seen a 2.4% drop so far this year, driven largely by an 18% decline in student visas.

For many travelers, the new fee will simply add to the high cost of visiting the U.S. “The U.S. has always been selective about its visitors,” said Su Shu, founder of Chengdu-based Moment Travel. “If your financial standing isn’t up to par, getting a visa is tough anyway.”

But there are worries the fee will trigger payback. Other countries may start imposing their own new charges on American travelers.

“Clients are concerned about reciprocal fees that may be imposed in the coming months,” said James Kitchen, owner of Seas 2 Day & Travel. Photo by U.S. Customs and Border Protection, Wikimedia commons.

 


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