International travel to the United States is about to get noticeably more expensive with Congress recently approving a hefty increase to the Electronic System for Travel Authorization (ESTA) fee, jumping from $21 to $40. This fee change, included as part of a larger legislative package, also involves significant cuts to the Brand USA budget, the tourism marketing agency for the United States.
Understandably, the travel industry isn’t too happy, particularly with events like the 2026 FIFA World Cup and the 2028 Summer Olympics approaching, wondering if these changes could diminish America’s pull as a major tourist destination.
U.S. Tourism Industry Sounds the Alarm
Geoff Freeman, head of the U.S. Travel Association, though appreciative of infrastructure investments, strongly criticized the ESTA fee increase and the cuts to Brand USA’s funding, seeing them as counterproductive moves. Freeman stated, “While there are indeed some wise decisions regarding travel, these gains are offset by new expenses and less marketing of the U.S. to potential customers.” The fee, he argued, is like a “self-imposed tariff” on the tourism sector, which is a major export for the U.S. This is a missed chance to benefit from global events like the World Cup and Olympics, he further added.
Freeman has actively encouraged Congress to restore the complete funding level for Brand USA, as initially proposed in the administration’s budget for 2026. He also suggested looking into ways to lower or even eliminate fees for international visitors, all in an effort to keep America competitive in the global tourism marketplace.
What It Means for Travelers
The increase in the ESTA fee, awaiting final details before going live, means travelers will need to factor in an extra $19 for visa-free entry. The exact start date isn’t set yet, so potential visitors should check the official ESTA website for the latest information before booking. With less funding for Brand USA, we might also see less promotion of U.S. tourism destinations, possibly impacting interest from international travelers, just when the country is hoping to benefit from the big upcoming events.
A Critical Juncture for U.S. Tourism
With the U.S. gearing up to host some of the world’s biggest events, the tourism industry faces a tricky situation. On the one hand, there’s investment in making travel better, but on the other, there are higher fees and less marketing, which could put off international visitors. With the ESTA fee almost doubling, and Brand USA’s budget slashed, the U.S. needs to tread carefully to stay a leading global destination. Travelers planning a trip to the U.S. in 2025 should keep an eye on the new fee structure and be ready for changes in how U.S. tourism is being promoted.