US, Aug. 13 -- The United States has made its controversial visa bond program permanent for 50 countries. Washington says it virtually eliminated overstays. The U.S. travel industry sees another number: an 83% collapse in visas issued-and fears the next list could be much bigger.

What happens when an immigration policy works almost too well?

The United States has turned its experimental visa bond system into permanent policy, requiring otherwise qualified tourist and business visa applicants from 50 designated countries to potentially place $10,000, $15,000 or $20,000 in cash with the U.S. government before receiving their visas.

Now the head of the U.S. Travel Association is sounding an alarm over what could happen if Washington expan...