The United States’ newly imposed $250 “visa integrity fee” threatens to further weaken an already struggling travel industry, with overseas arrivals falling for the fifth time this year despite hopes of recovery.
According to U.S. government data, international travel to the U.S. dropped 3.1% year-on-year in July to 19.2 million visitors, marking another setback to expectations that 2025 would surpass pre-pandemic levels of 79.4 million.
The additional fee, effective October 1, applies to travelers from non-visa waiver countries such as Mexico, Argentina, Brazil, India, and China.
It raises the total U.S. visa cost to $442 — among the highest globally, according to the U.S. Travel Association.
“Any friction we add to the traveler experience is going to cut volumes,” said Gabe Rizzi, President of global travel management firm Altour. “This will hit budgets hard and discourage many from booking trips.”
International visitor spending in the U.S. is forecast to fall to $169 billion in 2025, down from $181 billion last year, according to the World Travel & Tourism Council.
The move compounds what analysts describe as a worsening perception of the U.S. under President Donald Trump, whose administration has tightened immigration rules, cut foreign aid, and imposed new tariffs.
Recent policies include a proposed regulation to shorten visa durations for students and journalists, and a pilot program requiring some tourists to post bonds of up to $15,000.
The new fee is expected to hit Latin America the hardest — a region that had been a rare bright spot in U.S. travel. Mexico: travel up nearly 14% in 2025; Argentina: up 20% and Brazil: Up 4.6%.
In contrast, arrivals from China remain 53% below 2019 levels, while visits from India have slipped 2.4% this year, driven largely by an 18% decline in student travel.
Some travelers may absorb the cost as part of an already expensive trip. But experts warn of possible reciprocal visa fees imposed by other countries in retaliation.
“The U.S. has always been selective about its visitors,” said Su Shu, founder of Chengdu-based travel agency Moment Travel. “But this may push more people to choose Europe or Asia instead.”
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