U.S. Tourism Faces Fresh Blow as New Visa Fees Come Into Effect
A concerning trend in U.S. tourism has experienced a significant downturn. New “visa integrity fees” and widened entry costs could further deter visitors, just as international arrivals were already declining under President Trump‘s administration.
Tourism Slumps Amid Fee Hikes
According to TIME, the World Travel & Tourism Council projected a decline in U.S. visitor spending this year, making it the sole decline among 184 countries analyzed. The shortfall is estimated between $12.5 billion and $25 billion, signaling a steep drop from previous expectations.
Visa Integrity Fee: A New Barrier
Under the “Big Beautiful Bill” signed July 4, travelers requiring non‑immigrant visas must now pay a non-waivable $250 “visa integrity fee” at issuance, regardless of purpose. The fee supporters in Congress say helps cover enforcement costs and fund border security.
The fee applies to tourists, business travelers, students, and temporary workers, but exempts nationals from Canada, Bermuda, and Visa Waiver Program countries.
Refunds Unlikely
Though refundable in theory for compliant travelers, the process is expected to be cumbersome and slow, with few actually benefiting.
Other Fee Increases
ESTA applications climbed from $21 to $40
Form I‑94 fees have increased sharply, rising from $6 to $24
These combined hikes are set to bring in approximately $40 billion over the next decade, according to CBO projections.
Industry’s Reaction
The U.S. Travel Association offered a mixed response: it backed funding for travel infrastructure but criticized the fee increases, calling them a “self-imposed tariff” that discourages international.
Economic and Competitive Risk
The timing could not be more inopportune. The U.S. is preparing to host the 2026 FIFA World Cup and the 2028 Summer Olympics, and international tourism is vital to these events. Already, visitor numbers have dropped over 6% in 2025, with bookings falling by as much as 60% in key markets, according to Business Insider.
Looking Ahead
With a strong dollar, border scrutiny, and fresh visa costs, travelers are increasingly opting for other destinations. Industry leaders are urging policymakers to reevaluate the fee structure, restore tourism marketing funding, and promote a friendlier travel message to reverse this downward.
Bottom Line:
The newly enacted visa integrity fee and related charges may bring in much-needed revenue, but they risk putting the U.S. at a competitive disadvantage in the international tourism market, right when global events loom on the horizon.