New $250 visa integrity fee risks deepening US travel slump

New York: A new $250 "visa integrity fee" imposed on travelers to the United States risks piling more pressure on the struggling travel industry, as overseas arrivals continue to fall due to President Donald Trump's crackdown on immigration and hostility to many foreign countries.

Overseas travel to the US fell 3.1 per cent year-on-year in July to 19.2 million visitors, according to US government data. It was the fifth month of decline this year, defying expectations that 2025 would see annual inbound visitors finally surpass the pre-pandemic level of 79.4 million.

The new visa fee, set to go into effect on October 1, adds an additional hurdle for travelers from non-visa waiver countries like Mexico, Argentina, India, Brazil and China.

The extra charge raises the total visa cost to $442, one of the highest visitor fees in the world, according to the US Travel Association, a membership organisation.

"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."

International visitor spending in the US is projected to fall below $169 billion this year, down from $181 billion in 2024, according to the World Travel & Tourism Council.

The visa fee reinforces a bleak perception of the US under Trump, whose immigration policies, cuts to foreign aid and sweeping tariffs have eroded America's appeal as a destination - even with major events like the 2026 FIFA World Cup and Los Angeles 2028 Olympics on the horizon.

The Trump administration on Wednesday proposed government regulation that aims to tighten the duration of visas for students, cultural exchange visitors and members of the media.

In early August, the administration said the US could require bonds of up to $15,000 for some tourist and business visas under a pilot program effective August 20 that will last for approximately a year, in an effort to crack down on visitors overstaying their visas.

Tourism Economics, an Oxford Economics consultancy, forecast in December 2024 that overseas travel to the U.S. in 2025 would increase more than 10 per cent year-over-year. Instead, it is on track to fall 3 per cent, said Aran Ryan, director of industry studies at Tourism Economics.

"We see it as a sustained setback, and we anticipate much of it is in place throughout the administration," Ryan said.

Hardest hit

The newest visa fee is likely to hit hardest in Central and South American countries that have been a rare bright spot for US travel this year.

As of May, travel from Mexico to the US was up nearly 14 per cent in 2025, according to the National Travel and Tourism Office.

Arrivals from Argentina rose 20 per cent and from Brazil 4.6 per cent year-to-date. Overall, travel from Central America grew 3 per cent and from South America 0.7 per cent, compared with a decline of 2.3 per cent from Western Europe.

In China, arrivals have remained muted since the pandemic, with July numbers still 53 per cent below 2019 levels. The visa fee also threatens travel from India, where visits are down 2.4 per cent so far this year, driven by a near 18 per cent drop in students.

For some, the rise in fees will be absorbed as just another cost in an already expensive trip to the US.

"The US has always been selective about its visitors. If your financial standing isn’t up to par, getting a visa is tough anyway,” said Su Shu, founder of Chinese firm Moment Travel in Chengdu.

As foreign visitors face higher entry fees, US travelers worry about stricter requirements being imposed abroad, said James Kitchen, travel agent and owner of Seas 2 Day & Travel.

"Travelers have expressed concern around reciprocal fees that may be imposed in the coming months," Kitchen said.