There are worries about higher travel expenses and possible visitor declines as a result of a new $42 charge on cruise passengers landing in Mexican ports.
The tax, which is intended to support the Mexican army, may reduce the appeal of the nation’s cruise destinations.
Mexico’s Congress has authorized a new $42 per person tax for all cruise ship arrivals, which could soon result in higher costs for cruise guests traveling there.
Although the fee, which is imposed whether or not passengers depart, is intended to help Mexico financially, the cruise industry is worried about how it would affect travel.
The tax is set to take effect next month and is expected to cover a wide range of passengers, from those disembarking for excursions to those staying on board.
Previously, cruise travelers were exempt from such tourist taxes under the country’s “in transit” policy, which allowed cruise guests to avoid paying taxes as they were considered temporary visitors. However, this long standing exemption has now been removed.
A protest from the Florida-Caribbean Cruise Association, stating this new tax could make it markedly expensive to visit Mexican ports by comparison with other Caribbean islands, and therefore deter tourist cruises.
Cozumel is one of Mexico’s busiest ports-it received nearly 3 million visitors in 2022 -and is a significant component in states like Quintana Roo in areas relating to cruise tourism, which contribute an estimated 40% toward that state’s GDP.
The FCCA also expressed concerns about the speedy implementation of the new policy, which might disturb the plans of already booked cruises for 2025. Despite the above objections, the Mexican government has decided to put two-thirds of the tax revenue towards funding the country’s army rather than port infrastructure.
Experts and those in the travel industry maintain that the levy would carry unforeseen repercussions, such as the loss of thousands of jobs linked to the cruise industry and a huge blow to Mexico’s tourism economy.
