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New $250 “visa integrity fee” for non-visa waiver nations like India to deepen US travel slump

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A new $250 “visa integrity fee” imposed on travellers to the United States risks piling more pressure on the struggling travel industry, as overseas arrivals continue to fall due to President Donald Trump’s crackdown on immigration and hostility to many foreign countries.

Overseas travel to the U.S. fell 3.1 per cent year-on-year in July to 19.2 million visitors, according to U.S. government data.

It was the fifth month of decline this year, defying expectations that 2025 would see annual inbound visitors finally surpass the pre-pandemic level of 79.4 million.

The new visa fee, set to go into effect on October 1, adds an additional hurdle for travellers from non-visa waiver countries like Mexico, Argentina, India, Brazil and China. The extra charge raises the total visa cost to $442, one of the highest visitor fees in the world, according to the U.S. Travel Association, a membership organization.

“Any friction we add to the traveler experience is going to cut travel volumes by some amount,” said Gabe Rizzi, President of Altour, a global travel management company.

“As the summer ends this will become a more pressing issue, and we’ll have to factor the fees into travel budgets and documentation.”

International visitor spending in the U.S. is projected to fall below $169 billion this year, down from $181 billion in 2024, according to the World Travel & Tourism Council.

The visa fee reinforces a bleak perception of the U.S. under Trump, whose immigration policies, cuts to foreign aid and sweeping tariffs have eroded America’s appeal as a destination – even with major events like the 2026 FIFA World Cup and Los Angeles 2028 Olympics on the horizon.

The Trump administration on Wednesday proposed government regulation that aims to tighten the duration of visas for students, cultural exchange visitors and members of the media.

In early August, the administration said the U.S. could require bonds of up to $15,000 for some tourist and business visas under a pilot program effective August 20 that will last for approximately a year, in an effort to crack down on visitors overstaying their visas.

Tourism Economics, an Oxford Economics consultancy, forecast in December 2024 that overseas travel to the U.S. in 2025 would increase more than 10 per cent year-over-year. Instead, it is on track to fall 3 per cent, said Aran Ryan, director of industry studies at Tourism Economics.

“We see it as a sustained setback, and we anticipate much of it is in place throughout the administration,” Ryan said.

Hardest Hit

The newest visa fee is likely to hit hardest in Central and South American countries that have been a rare bright spot for U.S. travel this year.

As of May, travel from Mexico to the U.S. was up nearly 14 per cent in 2025, according to the National Travel and Tourism Office.

Arrivals from Argentina rose 20 per cent and from Brazil 4.6 per cent year-to-date. Overall, travel from Central America grew 3 per cent and from South America 0.7 per cent, compared with a decline of 2.3 per cent from Western Europe.

In China, arrivals have remained muted since the pandemic, with July numbers still 53 per cent below 2019 levels. The visa fee also threatens travel from India, where visits are down 2.4 per cent so far this year, driven by a near 18 per cent drop in students.

For some, the rise in fees will be absorbed as just another cost in an already expensive trip to the U.S.

“The U.S. has always been selective about its visitors. If your financial standing isn’t up to par, getting a visa is tough anyway,” said Su Shu, founder of Chinese firm Moment Travel in Chengdu.

As foreign visitors face higher entry fees, U.S. travelers worry about stricter requirements being imposed abroad, said James Kitchen, travel agent and owner of Seas 2 Day & Travel.

“Travelers have expressed concern around reciprocal fees that may be imposed in the coming months,” Kitchen said.

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Published on August 30, 2025



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Travel Smart: Save More By Exploring India’s Lesser-Known Destinations | Business News

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The Trend shows Indian travellers opting for underrated destinations and avoiding the traditional hotspots of the world for their perfect getaways.

Why Indian travellers are choosing offbeat destinations. (representative image)

Amidst rising inflation and expenses, Indian travellers are getting smarter and opting for lesser-known destinations for their family getaways. According to a report by Policybazaar, there has been a 45 per cent rise in travel insurance purchases made by Indian tourists for such not-so-popular locations within the last three years.

Travel experts have encouraged tourists to visit these offbeat destinations as they offer budget-friendly accommodation options, cheap meals and various experiences. In stark contrast with the traditional hotspots of the world, where heavy tourist turnout fuels prices to incredible heights.

Save Money By Travelling Low-Key

According to Pavan Kavad, Managing Director of Prithvi Exchange (India) Limited, Indians can save up to 20-40 per cent of their touring expenses just by opting for what are often called the underrated gems of the world. At these emerging destinations, local transport, hotel stays and food are significantly more affordable than the usual tourist hubs.

“Mid-range hotels in Vietnam are often 30-40% cheaper than comparable stays in Goa, while a city break in Eastern Europe can cost nearly half of what a weekend in Edinburgh would,” Kavad says.

The strength of the Indian rupee also plays a big role here. According to estimates, a budget of Rs 1 lakh would barely cover four nights in Paris, whereas in places like Poland, it should cover a week-long trip. When the Indian rupee weakens against a foreign currency, outbound costs for Indian travellers usually rise by 8-15 per cent, at times even 18, noted Kavad.

Smart Planning Further Raises Affordability

SD Nandakumar, President & Country Head – Holidays & Corporate Tours, SOTC Travel, believes Indian travellers can further ease their budget constraints and enjoy greater buying capacity overseas through smarter travel planning. Travelling during the off-seasons, making bookings in advance and wisely choosing the accommodation and food locations could prove to be a game-changer for Indian middle-class tourists.

“Booking holidays during a destination’s off-peak season is an effective way to save. Self-drive tours in countries like South Africa, Scotland, and Spain-Portugal allow travellers to explore at their own pace while discovering lesser-known locations,” said Nandakumar.

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Madhya Pradesh Bags ‘Best State Tourism Board’ Award at India Travel Awards 2025 – Indian PSU

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Madhya Pradesh Tourism Board (MPTB) has been awarded the ‘Best State Tourism Board’ Award at the prestigious India Travel Awards 2025, held at Le Meridien, New Delhi. The award was presented by Union Minister for Tourism and Culture, Gajendra Singh Shekhawat, in recognition of Madhya Pradesh’s excellence in innovation, sustainable growth, and leadership in the tourism sector.

Minister of State (Independent Charge) for Tourism, Culture, and Religious Trusts and Endowments, Dharmendra Singh Lodhi, said the honour is a matter of great pride for the people of Madhya Pradesh. “Under the leadership of Chief Minister Dr. Mohan Yadav, the state government has resolved to make tourism a driver of development. This award motivates us to bring global recognition to the state’s heritage, natural wealth, and folk traditions while also creating opportunities for employment and self-reliance,” he remarked.

Sheo Shekhar Shukla, Additional Chief Secretary, Tourism, Culture, Home, Religious Trusts and Endowments, and Managing Director of MPTB, credited the award to the team’s collective vision. “Our goal is to create new destinations, strengthen local economies, empower women, preserve traditions, and promote sustainable tourism. This recognition inspires us to position Madhya Pradesh – the ‘Heart of Incredible India’ – as a unique tourism hub where tradition, nature, and modernity blend seamlessly,” he said.

The recognition reflects MPTB’s forward-looking initiatives, including:

  • Development of eco-tourism circuits
  • Promotion of community-based homestays
  • Expansion of adventure and experiential tourism
  • Strengthening of hospitality and visitor infrastructure

With this award, Madhya Pradesh reaffirms its commitment to offering tourists a world-class travel experience, highlighting its rich cultural legacy, natural landscapes, and diverse traditions.



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Pilgrimage Travel emerges as one of India’s fastest-growing Tourism segment: MakeMyTrip

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MakeMyTrip’s latest data reveals pilgrimage travel is emerging as one of the fastest-growing segments in India’s tourism industry, with accommodation bookings across 56 pilgrimage destinations growing 19% in FY24-25.The company’s Pilgrimage Travel Trends 2024-25 shows broad-based momentum, with 34 destinations recording double-digit growth and 15 destinations growing by over 25%. Traditional centers like Prayagraj, Varanasi, Ayodhya, Puri, Amritsar and Tirupati continue expanding, while emerging destinations such as Khatushyam Ji, Omkareshwar and Thiruchendur are also registering strong growth.“Pilgrimage Travel has always been part of our culture, but what we see now is its scale and consistency across the country. We are seeing steady growth, fuelled by stronger connectivity and Indians across all age groups and income segments planning pilgrimage-led trips. This growing demand is broadening traveller expectations and prompting the industry to innovate in ways that better serve the unique needs of the pilgrim traveller,” said Rajesh Magow, Co-Founder and Group CEO, MakeMyTrip.The data reveals distinct traveller patterns in pilgrimage tourism. Nearly two-thirds of bookings are made within six days of departure, while 53% of travelers opt for single-night stays compared to 45% in leisure travel. Group bookings account for 47% of pilgrimage trips versus 38.9% for leisure destinations, highlighting the collective nature of spiritual journeys.Premiumisation is gaining traction, with bookings for rooms above ₹7,000 growing over 20%. While 71% of bookings remain below ₹4,500 per night, rooms in the ₹7,000-10,000 range grew 24% and those above ₹10,000 increased 23%.The company also launched “Loved by Devotees,” a curated collection of accommodations near spiritual destinations, alongside 600+ holiday packages catering to pilgrim travelers.





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