Mexico Revisits Tax on Cruise Ship Passengers Amid Industry Backlash

The cruise industry recently faced turbulence as Mexico implemented a tourism tax impacting thousands of passengers. This tax, deemed controversial, imposed a charge on every traveler arriving via cruise ships.

In December, Mexico’s congress approved a $42 immigration levy for each passenger docking at its ports. The decision stirred strong feelings within the tourism sector and among potential visitors, leading to widespread criticism and concern.

Originally, this levy was expected to take effect on January 1, 2023. However, following pushback from the cruise industry and travelers alike, Mexican authorities postponed the tax, aiming to reassess its implications.

Tax Revision and Industry Collaboration

Subsequent discussions between officials and industry stakeholders resulted in a significant reduction of the tax. It now stands at a much lower fee of $5, scheduled to be enforced starting July 1, 2023. The Florida-Caribbean Cruise Association (FCCA) confirmed this adjustment, highlighting the collaborative efforts between the cruise lines and the Mexican government.

The FCCA, representing a major portion of cruise industry capacity in the Caribbean and Latin America, expressed gratitude for the resolution. In a statement, they cited, “On behalf of the FCCA and our member cruise lines – representing over 95% of cruise capacity in the Caribbean and Latin America – we thank the Federal Government of Mexico for working with us to reach an ‘in transit fee’ agreement.” This acknowledgment underscores the importance of cooperation between governments and commercial interests in addressing economic concerns.

Safeguarding Local Economies

The FCCA also noted that the reduced fee structure aims to protect Mexico’s cruise tourism while enhancing economic benefits for the communities reliant on this influx of visitors. The organization emphasized that local economies thrive significantly due to cruise tourism, and measures that endanger this revenue could have severe repercussions.

The implemented fee will see incremental increases over the next few years. It will rise to $10 on August 1, 2026, and then reach $15 by July 1, 2027. Following this, the fee will further increase to $21 starting August 1, 2028. This phased approach reflects the Mexican government’s willingness to generate revenue while considering the industry’s feedback.