A new $250 (about Ksh.32,375) “visa integrity fee” imposed on travelers to the United States is set to further strain the already struggling travel industry, as inbound tourism continues to falter under President Donald Trump’s hardline immigration policies.
According to U.S. government data, overseas arrivals dropped 3.1% year-on-year in July to 19.2 million visitors, marking the fifth monthly decline in 2025. The slump defies projections that this year would finally see inbound visitors surpass the pre-pandemic level of 79.4 million.
The new charge, which takes effect October 1, will push the total visa cost for travelers from non-waiver countries including Mexico, Brazil, Argentina, China, and India to $442. The U.S. Travel Association has noted this is among the highest visa fees globally, reinforcing negative perceptions of America’s accessibility.
Tourism Economics, a consultancy under Oxford Economics, had forecast a 10% rebound in overseas travel to the U.S. in 2025. Instead, it now projects a 3% decline. “We see it as a sustained setback, and we anticipate much of it is in place throughout the administration,” said Aran Ryan, director of industry studies at the firm.
The new fee is expected to hit hardest in Central and South America, which had been rare bright spots this year. As of May, travel from Mexico rose nearly 14%, Argentina 20%, and Brazil 4.6%. By contrast, arrivals from Western Europe dropped 2.3%. China remains far below pre-pandemic levels, while Indian arrivals have dipped 2.4%, with student visas plunging nearly 18%.
Beyond fees, the Trump administration has rolled out a series of restrictive measures, including proposed limits on student and media visas, and a bond requirement of up to $15,000 for certain visitors under a yearlong pilot program.
Industry players warn that these policies risk reciprocal measures from foreign governments. “Travelers have expressed concern around reciprocal fees that may be imposed in the coming months,” said James Kitchen, owner of Seas 2 Day & Travel.
International visitor spending in the U.S. is projected to fall to $169 billion this year, down from $181 billion in 2024, according to the World Travel & Tourism Council a decline experts fear could persist well beyond 2025.
