The introduction of a controversial new cruise tax in Mexico has been delayed for six months after the sector claimed its impact would be “disastrous”.
Mexico’s federal government had planned to implement a $42 fee for each cruise passenger arriving into the country from 1 January – three times the average cost at Caribbean ports.
However, following a meeting with government officials last month, the Florida-Caribbean Cruise Association (FCCA) – which advocates for the industry in Mexico rather than Clia – said the government had pushed back its plans for the levy to 1 July.
For the past 10 years, cruise passengers visiting Mexican ports have been exempt from paying any immigration fees because they are considered “in transit”.
The FCCA warns Mexico risks "pricing its ports out of the cruise market" with its proposed fee. Chief executive Michele Paige admitted the association had been “caught off guard” by the government’s “unilateral decision” to implement the new policy with only around a month’s notice.
It said the postponement would provide “a temporary reprieve”, but stressed “comprehensive measures” were required to address the sector’s concerns.
The Mexican Association of Cruises said: “The impact of this tax on Mexican tourist destinations will be disastrous. If implemented, we expect to see a progressive drop in arrivals. Less income means fewer jobs and lower tax revenues for the government.
"Mexico will lose its competitiveness, becoming one of the most expensive cruise destinations in the world."
Paige added: “Cruise lines will inevitably reevaluate the viability of investments considering the potential loss of consumer demand for Mexico cruises driven by the unprecedented tax increase on cruise tourism.”
The FCCA said passenger fares generated $62.6 million in port fees in Mexico during the 2023/24 cruise year.
Find contacts for 260+ travel suppliers. Type name, company or destination.