Latest news with #USTravelAssociation
7NEWS
2 days ago
- Business
- 7NEWS
Travellers to the US must pay a new $250 ‘visa integrity fee' — what to know
Visitors to the United States will need to pay a 'visa integrity fee,' according to a provision of the Trump administration's recently enacted One Big Beautiful Bill Act. The fee applies to all visitors who need nonimmigrant visas to enter, and cannot be waived. However, travellers may also be able to get the fees reimbursed, according to the provision. Details about the new requirement are scant, which has resulted in 'significant challenges and unanswered questions regarding implementation,' a spokesperson from the US Travel Association told CNBC Travel. However, here is what is known thus far. How much is the fee? The fee will be at least $250 ($A383) during the US fiscal year 2025, which runs from October 1, 2024, to September 30, 2025. However, the secretary of Homeland Security is free to set the fee higher, according to the provision. Thereafter, the visa integrity fee will be adjusted for inflation. Who must pay the new fee? The 'visa integrity fee' applies to all visitors who need nonimmigrant visas, which includes tourists, business travellers and international students. When is the fee paid? The fee is paid when the visa is issued, according to the provision. Thus, visitors whose visa requests are denied will not be charged. Does the fee replace other visa fees? No, the provision states that the new fee is 'in addition to' other fees, including regular visa fees. 'For example, an H-1B worker already paying a $205 application fee may now expect to pay a total of $455 once this fee is in place,' Steven A Brown, a partner at the Houston-based immigration law firm Reddy Neumann Brown PC, wrote in a post on his firm's website. Additionally, the fee must be paid on top of a 'Form I-94 fee,' which the One Big Beautiful Bill Act increased from $6 to $24. That fee must be paid by anyone who is required to submit a Form I-94 arrival and departure record, which applies to most travellers. How can travellers get reimbursed? To get their money back, visa holders must comply with the conditions of the visa, which includes 'not accept[ing] unauthorised employment,' and not overstay the visa validity date by more than five days, according to the provision. Reimbursements will be made after the travel visa expires, it says. What isn't known The fee has not yet been implemented, according to Brown. It is not clear when it will begin. 'I believe it would need a regulation, or at least a notice in the Federal Register, regarding implementation on collection,' said Brown. It is also unclear how travellers will pay the fee, the US Travel Association told CNBC. 'The bill directs the DHS Secretary to charge the fee, but DHS does not own the visa application, issuance or renewal process — so where and when would DHS collect the fee?' the spokesperson said. In response to CNBC's enquires, a Department of Homeland Security spokesperson said: 'The visa integrity fee requires cross-agency coordination before implementation.' More questions surround how and when the reimbursement process kicks in. Since many visas are valid for several years, the US Congressional Budget Office said it expects 'a small number of people would seek reimbursement.' Moreover, 'CBO expects that the Department of State would need several years to implement a process for providing reimbursements. On that basis, CBO estimates that enacting the provision would increase revenues and decrease the deficit by $28.9 billion over the 2025‑2034 period.' Brown said he is advising clients to treat the fee as nonrefundable. 'If you get it back, great. But it is usually difficult to get money back from the government,' he said. 'I would rather them view it as a 'bonus' if they get the refund.' The purpose of the fee 'President Trump's One Big Beautiful Bill provides the necessary policies and resources to restore integrity in our nation's immigration system,' a Department of Homeland Security spokesperson told CNBC. Data shows most visa holders comply with their visa terms. For the fiscal years between 2016 and 2022, between 1 and 2 per cent of nonimmigrant visitors overstayed their visas in the United States, according to the US Congressional Research Service. However, an estimated 42 per cent of the approximately 11 million unauthorised population living in the United States entered the country legally, but overstayed their period of admission, the data shows. Effect on incoming travellers Brown said the visa integrity fee will likely impact B visa holders — or leisure and business travellers — and international students more than other types of travellers. 'For B visa holders, they may not want to add an additional $250 per person to their trip costs,' he said. The new fee, plus the I-94 fee, come as the United States prepares to host several major events in 2026, including the 'America 250' celebration, in honour of the country's 250th anniversary, and parts of the FIFA World Cup. These hurdles are compounded by problems at Brand USA, the destination marketing organisation that promotes inbound travel into the United States, which saw the One Big Beautiful Bill Act slash its funding from $100 million to $20 million. The cuts came after the US Commerce Department fired nearly half of Brand USA's board members in April. In a statement, Fred Dixon, the organisation's president and CEO, said it is 'disappointed' with the cuts yet hopeful that the funds will be restored for the fiscal year 2026. 'We remain focused on growing legitimate international inbound travel and the vital boost it provides to the US economy,' he said. Ahead of the passage of the One Big Beautiful Bill Act, US Travel Association President and CEO Geoff Freeman praised the bill's contributions to US infrastructure, air traffic control and border security. But, he added: 'The smart investments in the travel process make foolish new fees on foreign visitors and reductions to Brand USA, America's promotion arm, that much harder to swallow.'
Skift
4 days ago
- Business
- Skift
U.S. Visa Sticker Shock: New $250 ‘Integrity Fee'
At a time when international arrivals to the U.S. are already slumping, these hefty additional fees will be one more reason not to visit. There are cheaper places to travel to with less hassle. Many travelers applying for U.S. tourist visas should be prepared to pay at least an additional $250 for a new 'Integrity Fee.' It's part of the recent budget law and hasn't been implemented yet, but the Department of Homeland is authorized to start charging this fiscal year. Starting in Fiscal Year 2026, which starts October 1, the Visa Integrity Fee will be adjusted annually for inflation. It applies to travelers applying for non-immigrant visas, but people from the more than 40 Visa Waiver Program countries are not subject to the Visa Integrity Fee. Travelers are eligible for reimbursement sometime after the visa expires as long as they don't overstay the visa expiration date by more than five days or engage in unauthorized work. 'There is no timeline for implementation of the fee or direction as to how the fee will be collected and refunded,' according to the U.S. Travel Association. One issue: It may discourage travelers from visiting the U.S. because they would have to shell out $250 and wonder if they would ever get the reimbursement. 'This fee, which will be at least $250 and comes on top of existing visa fees, adds an unnecessary financial barrier for international visitors,' said Erik Hansen, US Travel's senior vice president, government relation affairs. 'Among the top deterrents to visiting the U.S. are cost and visa wait times. And the new visa integrity fee increases the upfront costs of visiting the U.S. 144%, while doing nothing to lower interview wait times. Even if it is technically reimbursable, the added complexity and cost will discourage visitors.' $24 I-94 Fee That's not all of the costly news for some international arrivals in the new law: The application fee for the I-94 arrival and departure record will rise to $24 from $6. This fee will likely apply to travelers entering the U.S. by land, and to travelers from Visa Waiver Program countries. This fee will also increase each year with inflation. Those exempt from filling out the form include American citizens, resident aliens, most Canadians, and aliens with immigration visas. $40 ESTA Fee The Electronic System for Travel Authorization (ESTA) fee is rising to $40 from the current $21. This will be paid by travelers who enter the U.S. from Visa Waiver Program countries at least through 2034. These are the Visa Waiver Program countries, according to the U.S. Department of State: U.S. Department of State Visa Wait Times and Cost A family of four from Brazil, which is not a visa waiver program country, would pay $1,876 in visa fees under the new pay structure to travel to the U.S., an increase of more than $1,100, according to the trade association. 'At a time when the U.S. should be focused on attracting more international visitors, especially ahead of global events like the World Cup and Summer Olympics, burdening them with higher fees and reducing funding for Brand USA is counterproductive,' Hansen said. 'We need smarter policies that enhance our global competitiveness, not ones that make the U.S. a less welcoming destination.' Revenue Generators Backers of the fees, however, see them as revenue generators. For example, 20% of the I-94 fees are earmarked for the Land Border Inspection Fee account, 20% go to Customs & Border Protection, and 60% ends up in the Treasury Department general fund. Regarding the ESTA fee, $10 goes to the Department of Homeland Security for cost recovery, $13 is funneled to the Treasury Department for Deficit Reduction, and $17 of the fee goes to the Travel Promotion Fund, which funds Brand USA.
Yahoo
5 days ago
- Business
- Yahoo
US Will Begin Charging Some Tourists a $250 ‘Visa Integrity Fee'
AaronAmat/Getty Visiting the United States is about to get significantly more expensive thanks to a new US visa fee increase. Federal lawmakers have approved a hefty new visa fee that will soon apply to a large number of tourists entering the US. As part of the Trump administration's One Big Beautiful Bill Act that was signed into law on July 4, a new $250 'visa integrity fee' will be charged to any US visitor who needs a nonimmigrant visa. According to the bill's language, the fee will apply to 'any alien issued a nonimmigrant visa at the time of such issuance.' That means anyone applying for a nonimmigrant visa in any category that requires issuance for entry into the US should expect to pay the $250 charge, according to immigration legal firm Envoy Global. When officials begin collecting the fees (the start date of which remains in question), the money will go to the US Treasury Department's general fund. Travel industry experts are worried that the new fee could potentially further curtail US tourist numbers, which have already dipped in 2025. Geoff Freeman, president and CEO of the US Travel Association, called the new fees 'foolish' in a statement released after Congress passed the bill on July 3. 'Raising fees on lawful international visitors amounts to a self-imposed tariff on one of our nation's largest exports: international travel spending,' Freeman said. 'These fees are not reinvested in improving the travel experience and do nothing but discourage visitation at a time when foreign travelers are already concerned about the welcome experience and high prices. As Congress begins work on FY26 appropriations, it must … ensure visitor fees are lowered, if not eliminated, wherever possible.' The new fees are being implemented just before the US is set to host major global events like the World Cup in 2026 and the Summer Olympics in 2028, which could throw a huge wrench in the plans of both potential visitors and travel companies. Here's everything travelers need to know about the new $250 fee. Jump to Who will need to pay the new visa fee? Will the fee be reimbursable? Which countries are exempt? When will the 'visa integrity fee' go into effect? Who will need to pay the new visa fee? Any non-immigrant travelers from countries that are not on the US visa waiver list will need to pay the fee in order to enter the US. That means most tourists coming from Africa, Latin America, and South America, as well as select countries in Asia and the Middle East, will be subject to the new $250 levy. Travelers from visa waiver countries who are visiting the US for a reason that requires a special visa will also be required to pay the fee. The fees will apply to all student visas, work visas, and other special visas, including: F-1 and F-2 student visas; J-1 and J-2 exchange visas; H1-b and H-4 temporary work visas, and other employment and visitor categories. What's more: the $250 payment will be charged in addition to other visa fees. That means visitors will need to pay it along with any other reciprocity fees, anti-fraud fees, and 'machine-readable visa' (MRV) application fees, the amounts of which can vary by visa type. Will the fee be reimbursable? The visa integrity fee will not be waivable or reducible. According to Envoy Global, the Department of Homeland Security may potentially reimburse visitors if they fully comply with the terms of their visa by departing the US promptly when their visa authorization period ends, extending their nonimmigrant status, or changing their status to lawful permanent resident. Which countries are exempt? The fee does not apply to tourists from countries who do not need a visa to enter the US. This includes citizens of countries that are part of the US visa waiver program, as well as most travelers from Canada and Bermuda. There are 42 countries and autonomous states that are part of the visa waiver program. That means their citizens will not have to pay the $250 fee if visiting the US for up to 90 days on visa-free tourism or business. The exempt countries include: Andorra Australia Austria Belgium Brunei Chile Croatia Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Latvia Liechtenstein Lithuania Luxembourg Malta Monaco Netherlands New Zealand Norway Poland Portugal Qatar San Marino Singapore Slovakia Slovenia South Korea Spain Sweden Switzerland Taiwan United Kingdom When will the 'visa integrity fee' go into effect? So far, the fee's start date has not been officially announced. However, it could go into effect with the start of the new fiscal year in the US, according to Paul Saluja of Saluja Law, a firm that handles immigration law. That date would be October 1, 2025. Another component that remains to be seen is which agency will be responsible for collecting the fee. 'Given its connection to visa issuance, the Department of State may be involved in the collection process during the consular visa appointment process,' according to Envoy Global. The Department of Homeland Security could also be the one to collect the fee. However, it is likely that travelers will need to pay the $250 charge upon issuance of their visa. This is a developing news story and will be updated with information as it becomes available. Originally Appeared on Condé Nast Traveler The Latest Travel News and Advice Want to be the first to know? Sign up to our newsletters for travel inspiration and tips Stop Counting the Countries You Visit How Safe Is Flying Today? 5 Things Experts Want Travelers to Know The Best Places to See the Northern Lights Worldwide Solve the daily Crossword
Business Insider
5 days ago
- Business
- Business Insider
Travel is big business for the US. Trump's policies are making it more costly and less appealing, just before the FIFA World Cup.
Major moneymakers for the travel industry are on the horizon, and with them, billions of dollars from overseas into the US. But the potential windfall from those events could be at risk. President Donald Trump 's policies — and the perception of his policies — could cause some international visitors to rethink travel to the US altogether. This is happening right before several major events that are expected to rake in tourism dollars, including the FIFA World Cup and America's 250th birthday next year, and the Summer Olympics in 2028. "The overall picture right now is kind of a perfect storm," Lisa Simon, executive director of the International Inbound Travel Association, told Business Insider. Trump's immigration policies and ICE crackdowns have some international visitors concerned that they aren't welcome in the US anymore. Meanwhile, changes passed in the Big Beautiful Bill, including an increase in visa fees and a funding cut for the organization that promotes tourism to the US, could lead to a further decline in international visitors. Even without major events like the World Cup, tourism is big business in the US. Travel generated $1.3 trillion in spending in the US in 2024, according to a report from the US Travel Association, and supported 15 million jobs. It's also one of the US's largest service exports, drawing $181 billion in spending from international inbound travelers in 2024. But the industry has already taken a hit under Trump. Simon said international travel to the US was down more than 6% year-to-date. Noting that foreign visitors typically book far in advance, she said the second half of the year and into next year look even worse, with some IITA members reporting booking declines as high as 40 to 60% in some markets. While the US is still a top destination for international travelers, its market share has already been shrinking due to other destinations growing faster in popularity, she said. The US's loss is also another country's gain, and Simon said destinations in Europe and Asia are already winning over travelers who are choosing to skip the US. China, for instance, has been opening up visa-free entry to more countries, drawing more visitors — and their money. The White House did not respond to a request for comment. The Big Beautiful Bill makes visiting the US more expensive for some Erik Hansen, senior vice president, government relations, at the US Travel Association, told BI that surveys consistently show there are two primary factors that deter foreign visitors to the US: first, cost, and second, whether the US is a welcoming destination. "For the One Big Beautiful Bill, it set us back in both areas," Hansen said. The recently passed and signed spending bill adds to the cost barrier for foreign visitors. For travelers visiting from countries for which the US has waived visas, such as Australia, France, and South Korea, the fee for their travel authorization, or ESTA, was increased from $21 to $40. But for travelers from countries that require tourist visas, like China, Brazil, and India, a Visa Integrity fee of $250 was introduced. That fee is on top of the existing $185 tourist visa, making the new cost $435. That means a family of four would be spending an additional $1,000 on fees before even entering the US. Hansen said that's $1,000 that's not being spent at American businesses. The spending bill also cut match funding to Brand USA, the marketing organization that promotes travel to the US, from $100 million to $20 million. Hansen said Brand USA is "our megaphones for welcoming the world and encouraging people to come to the United States." He said a lot of travel businesses and destinations also count on Brand USA to sell them to international markets, adding it's likely to be smaller and more rural destinations, many of which are represented by Republicans in Congress, to suffer the most from the funding cut. An image and messaging issue Simon and Hansen noted that, with the exception of countries affected by the travel ban, the Trump administration has not officially changed the rules for tourists visiting the US. Still, stories of immigration crackdowns and international travelers having run-ins with ICE, or even being denied entry to the US on some occasions, have many international visitors feeling unwelcome. Several countries, including Germany, the United Kingdom, and Portugal, have even issued warnings or advisories to their citizens about visiting the US. "I think the Trump administration's focus on illegal immigration has been misinterpreted by many people abroad as they don't want any foreign visitors here, but that's absolutely not the case," Hansen said. The White House has established a World Cup task force with the goal of ensuring "a successful hosting of world-class international events that reflect the values, security, and hospitality of the United States of America." Hansen said he has also spoken to cabinet officials who said they share the goal of making the US the best destination for international travel. But there has been some less-than-friendly messaging, too. "We want them to come, we want them to celebrate, we want them to watch the game," Vice President JD Vance said during the task force's first meeting in May. "But when the time is up, they'll have to go home. Otherwise, they'll have to talk to Secretary Noem." The nod to Homeland Security Secretary Kristi Noem, one of the faces of Trump's deportation efforts, could be interpreted as not very welcoming. "It's not that it's necessarily a totally negative message, it's just not the friendliest," Simon said, adding that the administration should focus on getting a welcoming message out. In addition to pushing for a welcoming message, the US Travel Association is also appealing to the White House and Congress to restore Brand USA funding and cut the increased visa fees, Hansen said. He added that making it more expensive to come to the US "doesn't make any sense" given the administration's stated goals of growing US exports and lessening trade deficits. "That's a self-imposed tariff on one of our largest exports," he said.
Travel Weekly
11-07-2025
- Business
- Travel Weekly
From air traffic control to visitor fees, travel groups find pros and cons in budget law
Hotel, aviation and agency groups praised the massive budget and policy bill signed into law on July 4, citing long-sought investments in infrastructure and business-friendly tax policies. But industry stakeholders also expressed concern with its steep cuts to Brand USA's federal funding and the sharp fee hike for international travelers, which could further deter inbound travel. Aviation groups cheered the $12.5 billion provided to overhaul air traffic control (ATC) systems, even while cautioning that substantially more funding will be needed to complete the ambitious ATC transformation, especially within Transportation Department secretary Sean Duffy's four-year timeline. The Modern Skies Coalition, a group of stakeholders that formed for the purpose of supporting an ATC overhaul, called the bill a "meaningful first step toward replacing outdated technology and aging facilities with the tools needed to keep our skies safe and efficient for decades to come." The group has estimated that completing the ATC overhaul will cost at least $31 billion. Geoff Freeman The bill also won praise from airports for the more than $6.1 billion included for Customs and Border Protection (CBP) personnel, which was lauded by U.S. Travel Association CEO Geoff Freeman. "This legislation is a giant step in the right direction when it comes to improving America's travel infrastructure and security," Freeman said. But Freeman was less complimentary when referring to the bill's provisions for visitor fees and travel funding. The law introduces a $250 Visa Integrity Fee for nonimmigrant visas and nearly doubles the Electronic System Travel Authorization (ESTA) fee charged to Visa Waiver Program travelers, raising it from $21 to $40. It also slashed Brand USA's federal matching funds. Previously, Brand USA received private-sector donations that were matched by up to $100 million in federal funding provided by a $17 portion of every ESTA fee. The law now only provides for $20 million in federal funding for Brand USA. According to U.S. Travel, a portion of the fees once used for Brand USA will go to CBP to operate ESTA and "accomplish CBP's mission," and some will offset general government spending. Freeman called the new fees "foolish." "The smart investments in the travel process make foolish new fees on foreign visitors and reductions to Brand USA, America's promotion arm, that much harder to swallow," Freeman said. Freeman said that by not reinvesting the fees in improving the travel experience, the hikes "do nothing but discourage visitation at a time when foreign travelers are already concerned about the welcome experience and high prices." Fred Dixon The higher fees come as inbound visitation continues to decline: in June, total overseas visitation was down 3.4%, according to the National Travel & Tourism Office, excluding Canada and land crossings from Mexico. International visitation for the year is down 1.2%. Fred Dixon, CEO of Brand USA, said the reduction in its funding will require "a significant recalibration" of its resources and programming. Still, he added, "we remain focused on growing legitimate international inbound travel and the vital boost it provides to the U.S. economy, especially with major global events on the immediate horizon like America250 and the FIFA World Cup." Two ASTA victories ASTA said the bill contained two victories it had been lobbying for: a tax break used by many advisors was made permanent, and education savings accounts were given greater flexibility. The tax break, which had been set to expire at the end of 2025, allows small businesses to deduct 20% of their qualified business income. ASTA said the law has been updated to raise income limits to $75,000 for individuals or $150,000 for couples filing jointly. It also guarantees a minimum deduction of $400 for those earning at least $1,000 in business income. The deduction is applicable to many advisors, ASTA said. Jessica Klement The approved uses of 529 savings plans also expanded from a U.S. college or university or an apprenticeship program to being applicable to postsecondary training and credentialing, like ASTA's Verified Travel Advisor certification. Vice president of advocacy Jessica Klement called it "a common-sense update." Within the U.S. hotel industry, the American Hotel & Lodging Association (AHLA) also praised the small-business tax break, which it said was crucial for hotel owners who operate as small businesses under licensing agreements with national brands. The expiration of the deduction would have significantly increased taxes for these operators, the AHLA said. The bill also permanently extends 100% bonus depreciation and expanded business interest deductibility, which the organization said would incentivize capital improvements and property modernization. Christina Jelski and Jamie Biesiada contributed to this report.
