USA travel tax not so much of a burden

Travellers heading to the USA will have to pay a fee for their travel authorisations from September 8 but the $14 price tag, or £9 at current exchange rates, is lower than was widely anticipated.

The authorisations, known as an Electronic System for Travel Authorisation (ESTA), have been compulsory for UK tourists and other European visitors since January 2009, but until now have been free.

The fee, part of a package of measures included in the Travel Promotion Act, which was signed by President Obama in March, has been met with cautious relief by UK-based travel associations and operators.

The Visit USA Association, which does not support a tax on travel to the USA, said it was “pleasantly surprised” at the $14 tariff.

“We were anticipating a fee of around $20, so the fact that it comes in at under £10 at current exchange rates is obviously good news for travellers and anyone selling US holidays,” said Visit USA chair Kate Burgess-Craddy.

“While nobody likes taxes I don’t think this fee will prove a barrier for travel to the USA. It is much lighter than the travel taxes imposed by many other countries and, importantly, visitors do not pay it every time they travel to the USA because each ESTA application is valid for two years regardless of the number of visits that are made.” 

Burgess-Craddy says the authorisation fee presents an opportunity for agents to be proactive in assisting clients with their ESTAs.

“This is an area where agents can provide an added-value service for their clients. There are several bogus websites out there asking consumers to pay a much higher price for their ESTAs than they need to. Agents can step in and offer their clients the correct advice and refer them to our website (www.visitusa.org.uk) to avoid them getting ripped off.”