The U.S. travel industry is sounding the alarm over a new $250 visa fee for visitors from non–Visa Waiver countries, warning that the measure could significantly hurt inbound tourism. According to the U.S. Travel Association, the policy could lead to 1 million fewer international arrivals in 2026 and up to 3.5 million fewer visitors through 2028, resulting in an estimated $10.6 billion loss in travel revenue.

The fee applies to travelers from key markets such as Mexico, China, India, and Brazil, while visitors from Canada, Europe, Japan, South Korea, and Australia remain exempt. Industry leaders argue that the new cost will deter families and discourage spending that would otherwise support U.S. businesses.

“Any additional fee travelers are required to pay will impact choosing the U.S. as a destination,” said Erik Hansen, head of government relations for U.S. Travel, calling the new charge a “travel-deterrence fee.”

Meanwhile, a weakened U.S. dollar — down about 11% in early 2025, its steepest drop in 50 years — could make the country more affordable for international travelers. However, rising domestic prices and inflation continue to undercut that potential advantage.

Fred Dixon, CEO of Brand USA, said that recent exchange rate shifts have improved affordability in some markets, but cost remains a major factor in travel decisions.

The National Travel and Tourism Office report also highlights that while the U.S. ranks well for shopping, culture, and infrastructure, it lags behind in value for money, placing it at a competitive disadvantage against other global destinations.

As Catherine Prather of the National Tour Association warned, rising costs are already straining tour operators, threatening both international and domestic tourism growth in 2026.

The debate underscores a growing tension between fiscal policy and tourism competitiveness — with America’s “open for business” image now facing new barriers.