CEO Update: Visa fees add barriers to California’s global reach

Dear Industry Partners,

Last month, a federal spending package was signed into law that imposes new fees on international travelers. These added costs come at a time when affordability is already a pressing concern and only make it harder for California to attract travelers from around the world.
 
Once the new law is implemented, visa recipients will face a new $250 Visa Integrity Fee on top of existing visa fees. Millions of travelers from key markets such as Mexico, China, India and much of the Middle East will now spend hundreds of additional dollars to visit the United States before they ever step foot in the country. (Under the same law, ESTA fees for travelers from Visa Waiver countries will nearly double from $21 to $40. Most Canadian visitors to the U.S. are exempt from either of these fees.)
 
These increases make the United States less accessible at a time when travelers are seeking destinations that feel welcoming and affordable. Visit California’s latest Travel Indicators Summary projects international visitation to decline 9.2% this year. Visit California’s research confirms what many of us already know: price is the greatest barrier to long-haul travel. Across all 13 of California’s priority international markets, 42% of travelers cite cost as the top reason for staying home. Just 13% say they plan to visit the United States, down from 18% last year.
 
These challenges are real, but Visit California is advancing with clarity, strategy and a deep commitment to our industry’s future.
 
Domestic travel remains the backbone of California’s tourism economy, making up 94% of all visits in 2024. The state’s 40 million residents, together with millions of visitors from across the country, continue to sustain businesses in every region. To reinforce this critical segment, Visit California is making strategic investments to drive demand and shore up business across the state. As part of the board-approved FY 25/26 budget, we’ve increased our domestic marketing to 87% of our annual program funding, up from 79% in FY 24/25.
 
This reallocation of funds from international to domestic is not a retreat but a recalibration. We will continue to operate all 13 international offices and maintain visibility in priority markets including Canada, Mexico, the U.K. and Australia, aligning campaigns with key marketing moments. Through high-impact media, celebrity talent and co-branded partnerships with Expedia, TripAdvisor, Google and Michelin, Visit California continues to elevate the state as a global travel and entertainment hub.
 
These efforts deliver measurable impact. In the past year alone, Visit California campaigns drove $31.5 billion in incremental visitor spending — fueling local economies, supporting jobs and attracting new visitors statewide. Thank you for your leadership and continued partnership in ensuring California’s tourism economy remains resilient and competitive.

Sincerely,
Caroline Beteta
President & CEO
Visit California