In a move that’s left the cruise industry reeling, Mexico’s Congress has voted for a new tax of $42 per cruise passenger on a ship docking at a Mexican port. This new levy could take effect as early as next month. And if you’re thinking, “That’s fine, I’ll stay on board,” there will be no avoiding this extra charge. Whether you disembark or not, all passengers will need to pay $42. Previously, cruise passengers were exempt from tourist taxes under the “in-transit” provision of the Non-Migrant Rights policy.
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Mexico’s New Tax on Cruise Ship Passengers Could Add a Big Cost to Your Next Trip
The cruise industry has expressed significant concern over this new tax, fearing it could negatively impact the popularity of Mexican destinations. The Florida-Caribbean Cruise Association (FCCA) has criticized the decision, stating that it will make Mexican ports significantly more expensive than other Caribbean destinations.
Mexico is home to some of the most popular cruise ports in the world. According to the Florida and Caribbean Cruise Association (FCCA), over 10 million passengers visit the country by cruise each year, which means a potential extra $42 million in revenue for the Mexican government.
In a statement, Michele Paige, CEO of the FCCA, expressed surprise at the sudden and unilateral decision to eliminate the in-transit exemption. She highlighted the short notice provided to the industry, which could lead to confusion and inconvenience for travelers, especially those who have already booked their cruises for 2025.
While many popular tourist destinations have implemented fees to address overtourism, the allocation of funds in Mexico’s case raises questions. Two-thirds of the revenue from the new tax will go to fund the Mexican army rather than being used to improve port infrastructure or enhance the visitor experience.
Another concern is that Mexico’s cruise tourism industry significantly contributes to the country’s economy. According to the Mexican Association of Shipping Agents (AMANAC), the cruise industry has created 20,000 jobs in the country. It’s a valid concern that imposing this new tax could deter cruise lines from choosing Mexican ports, leading to a potential decline in visitor numbers and an economic impact.
The $42 per person fee for travelers represents a substantial additional cost, especially for families. If you’re traveling with a family of four, that will cost you an extra $168. Cruise operators will likely collect the new levy.
Industry experts are urging a more collaborative approach between the government, cruise lines, and travel agencies to find sustainable solutions that protect both the environment and the economic interests of the destination.
“I think it’s reasonable for us all — the government, the cruise lines, and travel retailers like myself — to have a discussion of what can we do to protect these beautiful places that we sell,” Ferrara says. “I’m hopeful there will be a better solution.” 