Mexico Delays New Cruise Passenger Tax After Industry Backlash

Created: JANUARY 25, 2025

The Mexican government has postponed a new tax on cruise passengers for six months following strong opposition from the cruise industry. Originally slated for January 1, 2025, the $42 per passenger tax will now take effect on July 1, 2025. This delay comes after the Florida-Caribbean Cruise Association (FCCA) met with Mexican officials and expressed concerns about the tax's potential impact on the cruise industry and Mexican tourism.

boarding cruise ship

The FCCA argued that the tax would make Mexico a significantly more expensive cruise destination, potentially leading passengers to choose alternative ports. They warned of a possible decrease in cruise ship visits to Mexico, resulting in substantial economic losses for local communities reliant on cruise tourism. The FCCA emphasized that the tax disproportionately affects cruise passengers, who often spend only a few hours in port, compared to other visitors who may stay for several days.

group of friends taking self portrait using smart phone on cruise

The FCCA's CEO, Michele Paige, expressed disappointment with the lack of prior consultation before the tax was announced and stressed the potential for negative economic consequences. She highlighted the irony of the situation, noting that the cruise industry had been looking to expand its presence in Mexico before the tax was proposed.

mexico travel cruises ships

While the delay provides a temporary reprieve, the FCCA maintains that a more comprehensive solution is needed to address the long-term concerns about the tax. They are advocating for a balanced approach that protects both the Mexican economy and the affordability of cruise travel. The Mexican Association of Cruises echoed these concerns, labeling the tax "disastrous" and predicting a decline in cruise ship arrivals and a negative impact on local businesses.

The new $42 fee per passenger will make Mexico one of the most expensive cruise destinations in the world.

mexico cruise tax delay

Paige thanked officials from other Central American and Caribbean nations for their outreach to FCCA members and their offers to host relocated cruise itineraries. The FCCA remains hopeful for continued dialogue with the Mexican government to find a mutually beneficial solution.

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