New $250 US Visa Fee Threatens to Dampen Foreign Travel

The Trump administration’s newly introduced “Visa Security Fee” of $250 is sparking alarm across the travel industry, with experts warning it could further strain America’s already weakened inbound tourism sector.

The fee, which takes effect on October 1, applies to travelers from countries not covered by the U.S. Visa Waiver Program, including Mexico, Argentina, India, Brazil, and China. Combined with existing processing charges, the new levy will raise the total cost of a U.S. tourist visa to $442, one of the highest rates in the world, according to the U.S. Travel Association.

“Any additional cost we add to the traveler experience will significantly reduce overall volumes,” said Gabi Rizzi, president of Altour Global Travel Management. He added that as peak summer ends, cost-sensitive travelers will feel the pressure most when planning budgets for fall and winter trips.

Tourism executives warn the policy could drive international visitor spending below $169 billion in 2025, down from $181 billion in 2024, based on projections by the World Travel & Tourism Council.

Government data shows that international arrivals to the U.S. fell 3.1% year-on-year in July, dropping to 19.2 million visitors. This marked the fifth straight month of declines in 2025, dashing earlier forecasts that inbound tourism would finally surpass its pre-pandemic 2019 level of 79.4 million visitors. Instead, consultancy Tourism Economics now expects arrivals to fall around 3% this year, rather than the double-digit growth it projected in late 2024.

The new fee is expected to hit Latin American markets hardest, where demand for U.S. travel had shown rare resilience. Through May, travel from Mexico rose nearly 14% year-on-year, Argentina surged 20%, and Brazil gained 4.6%. But industry leaders warn higher costs could reverse those gains.

Chinese tourism to the U.S. remains deeply depressed, with July arrivals still 53% below 2019 levels. Meanwhile, visits from India are down 2.4% so far this year, dragged lower by an 18% decline in student visas.

Critics argue the visa fee reflects a broader climate of hostility toward immigration and foreign visitors under President Donald Trump, whose policies, including wider tariffs, aid cuts, and toughened visa rules, have eroded America’s reputation as a welcoming destination.

The Trump administration also recently floated a proposal requiring some tourists and business travelers to post bonds of up to $15,000, adding further uncertainty for travelers.

“We’re already hearing concerns about retaliatory measures,” said James Kitchen, owner of Seize the Day & Travel. “If the U.S. raises barriers, other countries may well respond in kind.”

With the 2026 FIFA World Cup and 2028 Los Angeles Olympics on the horizon, the travel industry fears the latest fee could undercut what should have been a strong rebound period for U.S. tourism.