Upcoming $250 visa fee in October could potentially worsen tourism decline in the United States

The US government introduced a one-year pilot scheme on August 20, 2025, requiring bonds of up to $15,000 (€12,880) for some business and tourist visas. This new visa integrity fee of $250 (€287) will be implemented on October 1, 2025, increasing the total cost of a US tourist visa to $442 (€379) for visitors from non-Visa Waiver Programme countries.

This policy change is expected to significantly impact international travel to the US. Preliminary figures from the US National Travel and Tourism Office show a 1.6% decline in international arrivals (excluding Canada and Mexico) in 2025 compared to the previous year, a loss of more than three million visitors.

Indian travel to the US dropped 2.4% this year, largely due to an 18% decline in student numbers. Chinese arrivals remain 53% below 2019 levels. The new fee could quickly erode these gains, particularly for middle-class families in Latin America, who may shift towards regional destinations in the Caribbean or South America.

The policy is expected to affect Central and South America most severely, with visitor numbers to the US rising nearly 14% in the first half of 2025 for Mexico, surging by 20% for Argentina, increasing 4.6% year-to-date for Brazil, and showing a modest 0.7% increase for South America.

The Trump administration's broader immigration agenda is widely seen as a major factor behind the downturn in inbound travel. The new visa fees risks pushing many travellers towards alternative destinations perceived as more affordable and welcoming. There is a possibility that affected countries could introduce reciprocal visa fees for US travellers.

Aran Ryan, director at Tourism Economics, stated that the sector is now heading towards a 3% fall, and this setback is anticipated to be sustained throughout the administration. Julia Simpson, WTTC's president and CEO, stated that "The world's biggest travel and tourism economy is heading in the wrong direction."

Plans to tighten visa conditions for journalists and media professionals have been proposed, adding to the overall perception that the US is becoming less accessible to international visitors. The ESTA fee for European travellers will almost double from $21 to $40, further contributing to this perception.

A Chinese tour operator expressed concern that the new visa integrity fee could prove decisive in choosing where to spend their holiday budget. The cost of a tourist visa to Australia is AUD 195 (€109), while the UK's six-month visitor visa is priced at £127 (€146), significantly lower than the new US total of $442 (€379).

International visitor spending in the US is expected to fall below $169 billion (€145 billion) in 2025, down from $181 billion (€155 billion) in 2024. High costs and complex entry requirements could deter attendance at upcoming global sports events in the United States, such as the 2026 FIFA World Cup and the 2028 Los Angeles Olympics.

Proposals to shorten the duration of cultural exchange and student visas have been announced, further adding to concerns about the US's stance on international travel and tourism. As the implementation of the new visa integrity fee approaches, the impact on the US travel industry remains uncertain.

Upcoming $250 visa fee in October could potentially worsen tourism decline in the United States