August 31, 2025
3 mins read

Trump’s Pricey Welcome

The new fee, due to take effect on October 1, will apply to travellers from non–visa waiver countries such as Mexico, Argentina, India, Brazil and China…reports Asian Lite News

A new $250 “visa integrity fee” imposed on travellers to the United States is set to add fresh strain on the global tourism industry, at a time when overseas arrivals to the country are already on the decline.

According to U.S. government data, international travel to the country fell 3.1 percent year-on-year in July, dropping to 19.2 million visitors. It was the fifth monthly decline of 2025 and comes despite earlier expectations that inbound arrivals would finally surpass the pre-pandemic level of 79.4 million.

The new fee, due to take effect on October 1, will apply to travellers from non–visa waiver countries such as Mexico, Argentina, India, Brazil and China, Arab News reported. It will push the total cost of a U.S. visa application to $442, making it one of the most expensive in the world.

Industry experts warn that the additional charge could further deter visitors at a time when the U.S. already faces declining competitiveness as a destination. The measure comes on top of broader immigration restrictions introduced by President Donald Trump’s administration, including tighter visa rules and higher barriers for international students, cultural exchange participants and media representatives.

The World Travel & Tourism Council forecasts that international visitor spending in the U.S. will fall to $169 billion in 2025, down from $181 billion in 2024. Analysts say that the increase in visa fees, combined with other restrictions, is likely to reinforce the perception of the U.S. as an unwelcoming destination.

The administration has also introduced new measures designed to prevent visa overstays. These include a pilot programme requiring some travellers to post bonds of up to $15,000, alongside proposals to shorten the duration of stay permitted for students and temporary visitors.

Tourism Economics, an Oxford Economics consultancy, had predicted in late 2024 that overseas travel to the U.S. would increase by more than 10 percent this year. Instead, inbound travel is projected to fall by around 3 percent in 2025, marking a sharp reversal from expectations of recovery.

The effects of the new visa fee will be felt most in Central and South America, regions that have been rare bright spots for U.S. travel this year. Data from the National Travel and Tourism Office shows that travel from Mexico rose nearly 14 percent in the first half of 2025, while arrivals from Argentina increased 20 percent and from Brazil 4.6 percent. Overall, travel from Central America was up 3 percent and from South America 0.7 percent.

In contrast, visitor numbers from Western Europe fell 2.3 percent in the same period. Arrivals from China remain deeply depressed since the pandemic, with July numbers still 53 percent lower than in 2019. Travel from India is also down 2.4 percent this year, largely due to an 18 percent fall in student arrivals.

While some travellers may be able to absorb the higher visa costs as part of their overall budgets, the new rules are expected to create broader ripple effects. Industry observers warn that the U.S. risks reciprocal measures from other countries, as well as losing ground to competing destinations that are actively lowering barriers to entry.

With major events such as the 2026 FIFA World Cup and the Los Angeles 2028 Olympics on the horizon, the tourism sector is concerned that the U.S. could squander opportunities to revitalise inbound travel if the added costs and restrictions discourage millions of potential visitors.

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