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March 15, 2018


The Visa Waiver Program: Balancing Tourism

and National Security


The U.S. Visa Waiver Program (VWP) is intended to
encourage travel to the United States by allowing citizens
of more than three dozen countries to visit without
obtaining visas from a U.S. consulate. The program was
originally established in 1986. In recent years, some
Members of Congress and the Trump Administration have
expressed concern that potential terrorists holding passports
from a VWP country might be able to enter the United
States. Discussions over reform of the VWP are occurring
at the same time as a recent dip in the number of visitors to
the United States from VWP countries.


The Visa Waiver Permanent Program Act (P.L. 106-396)
allows citizens holding a passport from 38 developed
nations in Europe, Asia, Oceania, and South America (see
Figure 1) to visit the United States on trips of 90 days or
less for business or tourism without first obtaining a visa.
The VWP sets standards for travel documents, requires
information sharing between member countries and the
United States, mandates reporting of lost or stolen travel
documents, and requires travelers to use e-passports, which
include a digital chip containing biometric information and
are relatively difficult to tamper with.
Figure I. 38 Visa Waiver Program Countries


Source: Graphic created by CRS using data from the U.S.
Department of State-Bureau of Consular Affairs.
Prior to boarding a plane or ship for the United States, all
prospective VWP travelers must obtain pre-travel
authorization through the Electronic System for Travel
Authorization (ESTA). This is a web-based application run
by the Department of Homeland Security (DHS), which
determines the eligibility of the foreign national to enter
under the VWP. An ESTA authorization is generally valid
for multiple entries over a period of two years.
Each VWP traveler who uses ESTA is charged a $14 fee.
Of this, $10 is used to fund Brand USA a public-private


entity to promote U.S. tourism and $4 goes to defray
DHS's costs of screening VWP applicants.
The VWP was established as a pilot program in 1986 and
became permanent in 2000. It is the largest source of
overseas visitors to the United States, other than visitors
from neighboring Canada and Mexico (which accounted for
half of total arrivals in the United States in 2016). Canadian
nationals can travel visa-free to the United States, but
Mexicans must obtain visas. Border crossing cards, often
referred to as laser visas, are issued to Mexican citizens
for short-term entry to the United States border zone for
business or tourism.
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In 2015, the latest year for which data are available, the
nation's tourism industries accounted for 2.7% of U.S.
gross domestic product. Of the 7.6 million American jobs
directly and indirectly supported by the domestic travel and
tourism industry in 2016, 1.2 million were supported by
international visitors, according to the Department of
Commerce. The Bureau of Economic Analysis estimates
foreign travelers accounted for 25% of tourist spending on
lodging, 27% of tourists' food and beverage demand, and
24% of total passenger air transportation demand in 2015.
In addition, international travelers spent about $244 billion
in 2017 on passenger fares on U.S. air carriers and travel-
related goods and services, which makes tourism the United
States' single-largest services sector export. The U.S. travel
and tourism sector has maintained an annual trade
surplus $70.1 billion in 2017  with the world every year
since 1989.
Arrivals of foreign visitors increased over many years, with
growth interrupted by the terrorist attacks of September 11,
2001, and by poor economic conditions in Europe and
Japan in 2009. Between 2015 and 2017, however, the
number of foreign residents arriving in the United States is
estimated to have fallen from 77.5 million to 75 million, a
drop of 3%, despite relatively strong economic growth
around the world. This decline has occurred at a time when
cross-border tourism is increasing globally.
Figures from the World Bank show the United States' share
of the 1.2 billion global tourism arrivals shrank to 6.1% in
2016 from 6.4% in 2015.
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In FY2016, about 23 million people entered the United
States under the VWP, accounting for roughly a third of all
temporary visitors to the United States. Arrivals from many
of the VWP countries responsible for the highest volumes
of tourist visits declined significantly (see Figure 2).


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