A new $250 “visa integrity fee” imposed on travellers to the US 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 79.4m.
The new visa fee, set to go into effect on October 1, adds an additional hurdle for travellers 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 traveller 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 $181bn in 2024, according to the World Travel and 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 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.
In China, arrivals have remained muted since the pandemic, with July numbers still 53pc below 2019 levels. The visa fee also threatens travel from India, where visits are down 2.4pc so far this year, driven by a near 18pc drop in students.
For some, the rise in fees will be absorbed as just another cost in an already expensive trip to the US.
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