The US House of Representatives approving a sweeping tax and spending bill that slashes Brand USA funding and increases visitor fees.
Worldwide government coffers look for methods to extract more from tourists before they arrive. The digital world has made it easier and more economical for government departments to administer collection of such fees.
Think back to when airline tickets became electronic and the sudden increase in airport taxes:) Easier to collect from airlines via the tickets payment systems.
Some words from Travel weekly.
The bill, dubbed the “big beautiful bill”, cuts funding to Brand USA from US$100 million (approx. AU$152m) to just US$20 million (AU$30m) for the fiscal year – a major blow to the country’s international marketing efforts, especially with the 2026 FIFA World Cup and 2028 LA Olympics on the horizon.
US Travel Association president and CEO Geoff Freeman said the timing couldn’t be worse. “Failing to fully fund Brand USA is a missed opportunity – especially as the administration seeks to maximise a historic slate of global events,” he said.
The ESTA fee for Visa Waiver Program travellers – which includes Australians – will increase from US$21 to US$40 (over AU$60), while a new US$250 (AU$380) Visa Integrity Fee will be introduced for visitor visas.
The World Travel & Tourism Council (WTTC) estimates the US could lose up to US$12.5 billion (AU$19.4 billion) in international visitor spending this year – a figure that could have ripple effects for Aussie agents with strong US product offerings.
Still, there are positives. The bill includes:
- US$12.5b (AU$19b) for air traffic control upgrades
- US$6.1b (AU$9.3b) to hire 5,000 new customs officers
- US$673m (AU$1b) to expand biometric screening
- US$1.6b (AU$2.4b) for security ahead of major global events
Freeman summed it up: “Smart infrastructure investments – but cuts to Brand USA and fee hikes send the wrong message to international visitors.”
