Monday, December 16, 2024

Cruise Industry Gets Reprieve As Mexico Delays New Cruise Tax

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Mexico’s new $42-per-guest cruise tax has been delayed following pushback from the industry.

Following a meeting with Mexican government officials, the Florida-Caribbean Cruise Association said the charge is now expected to go into effect on July 1, 2025 rather than January 1.

“While the proposed postponement provides a temporary reprieve, FCCA stresses that more comprehensive measures are required to address broader concerns about the tax’s devastating impact on cruise tourism, Mexico’s economy, and the livelihoods of its coastal communities,” the trade organization said in news release 

Mexico’s Senate approved the measure last week. Cruise passengers were previously exempt from tourist taxes in Mexico because they were considered in transit. 

Cruise ship docked in Puerta Maya, Cozumel, Mexico.

Cruise ship docked in Puerta Maya, Cozumel, Mexico. (Photo Credit: Adobe Stock/Solarisys)

The popular destination is expected to welcome 10 million cruise passengers in 2025, and industry players have warned that the tax could have massive impact as it would make stopping at Mexican ports much more expensive than other competitors in the region.

“The impact of this tax on Mexican tourist destinations will be disastrous,” the Mexican Association of Cruises said. “If implemented, we expect to see a progressive drop in arrivals, which will significantly affect employment for taxi drivers, tour guides, artisans, waiters, restaurateurs, craft store owners, pharmacies, and more. This also impacts artisanal suppliers from regions like Chiapas, Guerrero, Oaxaca, Sinaloa and others who support the ports where cruise ships dock.”

The group concluded: “Mexico will lose its competitiveness, becoming one of the most expensive cruise destinations in the world.”


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