In 2025, the U.S. began charging a $250 fee for visa applications, especially affecting travelers from countries outside the visa waiver program, including Brazil, Mexico, China, and India.
This happened shortly after the dollar dropped about 11%, a change that had made travel to the U.S. somewhat more affordable. Now, industry experts believe nearly a million tourists may skip visiting in 2026, raising questions about who can still afford to travel U.S. Travel Association.
What’s the actual economic impact on tourism
With higher visa fees and rising domestic prices, traveling to the U.S. is becoming more expensive. For many families, expenses could rise by up to $1,000, causing many to reconsider their plans. U.S. Travel forecasts a potential loss of up to $10.6 billion in tourism revenues between 2026 and 2028. The impact extends beyond major cities, hurting small businesses reliant on tourism U.S. Travel Association.
Is inflation threatening America’s tourism
In August 2025, the Consumer Price Index increased by 2.9%, reflecting higher costs for lodging, food, and services. This inflation reduces the U.S.’s competitiveness as a destination, affecting tourists and residents alike. Industry leaders cite rising costs combined with economic uncertainty as major challenges for the tourism sector Consumer Price Index.
How might the U.S. respond to this challenge
The visa fee hike highlights the challenge governments face in balancing security with economic growth. With rising competition among destinations and the sector still recovering from the pandemic, the U.S. faces critical decisions. The question remains who will decide it’s worth paying the price to visit and what does this mean for America’s place in global tourism.
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