A newly introduced $250 “visa integrity fee” for travellers to the United States is raising concerns that it could further strain the already struggling travel industry, as international arrivals continue to decline amid President Donald Trump’s immigration crackdown and tense relations with several foreign nations.
According to U.S. government data, overseas travel to the U.S. dropped 3.1% in July compared with last year, falling to 19.2 million visitors. This marked the fifth monthly decline in 2025, defying earlier expectations that international arrivals would finally surpass the pre pandemic high of 79.4 million.
The additional fee, which takes effect on October 1, will apply to travellers from non visa waiver countries such as Mexico, Argentina, India, Brazil, and China. With the increase, the total cost of a U.S. visa will rise to $442 among the highest visitor fees globally, according to the U.S. Travel Association.
“Every extra layer of friction reduces travel demand to some degree,” said Gabe Rizzi, President of Altour, a global travel management firm. “As the busy summer season ends, these added costs will be felt more sharply, forcing travellers and companies to adjust budgets and paperwork.”
International visitor spending in the U.S. is projected to fall below $169 billion this year, compared with $181 billion in 2024, the World Travel & Tourism Council reported.
The fee adds to the negative perception of the U.S. under Trump, whose strict immigration measures, reduced foreign aid, and sweeping tariffs have diminished its global appeal even with major events such as the 2026 FIFA World Cup and the Los Angeles 2028 Olympics on the horizon.
The administration is also considering additional restrictions. On Wednesday, it proposed regulations to shorten the duration of visas for students, cultural exchange visitors, and members of the media. In August, it launched a one year pilot program requiring bonds of up to $15,000 for certain tourist and business visas, aimed at discouraging overstays.
Tourism Economics, a consultancy under Oxford Economics, had forecast a more than 10% rebound in overseas travel to the U.S. for 2025. Instead, the sector is on track to shrink 3%, said Aran Ryan, the firm’s director of industry studies. “We see this as a sustained setback that will likely remain throughout the administration,” he noted.
Regional Impact
The new fee is expected to weigh most heavily on travellers from Central and South America regions that have been rare bright spots this year.
As of May, travel from Mexico was up nearly 14% compared with 2024, while arrivals from Argentina surged 20% and Brazil climbed 4.6%. Central America posted a 3% increase, and South America rose 0.7%. By contrast, Western Europe saw a 2.3% decline.
In Asia, the outlook remains weak. Travel from China remains 53% below 2019 levels, and arrivals from India are down 2.4% so far in 2025, largely due to an 18% plunge in student visas.
For some travellers, however, the higher costs will be absorbed as part of the overall expense of visiting the U.S.
“The U.S. has always been selective about who it lets in. If your finances aren’t solid, getting a visa is already a challenge,” said Su Shu, founder of Chengdu based Moment Travel in China.
Still, U.S. travellers worry about possible repercussions abroad. “There’s growing concern about reciprocal fees being introduced by other countries,” said James Kitchen, owner of Seas 2 Day & Travel.
