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Its pretty common for international travel....?

USA, Canada, Australia all have a small fee to process a visa. Some even have tourist/hotel taxes if you really want to get a huff on.

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A visa is entirely different. EU citizens of course don't need a visa to visit the UK (or the US, or Canada). The UK always had some special border shenanigans (not in the Schengen, etc etc), even for travelers with EU passports, but demanding an advance application with an associated fee is a new level of ridiculousness.

You've described exactly what the EU are implementing this year

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