Cruise holidays to Mexico will get costlier as one of many world’s busiest ports plans so as to add a passenger tax.
Each passenger getting into Mexico by cruise ship might quickly be charged a $42 tax (€39.90) – whether or not they disembark or not.
The legislation is the newest effort to curb overtourism within the nation. Traditionally, Mexico’s vacationer taxes have focused resort guests, whereas cruise ship travellers who’re deemed ‘in transit’ have been exempt.
Introduced after a vote by Mexico’s congress, two-thirds of Mexico’s proposed cruise passenger tax could be used to fund the Mexican military.
The legislation, which might apply from 2026, nonetheless must be authorised by the higher home. Nevertheless, the tax, which is being known as an ‘immigration doc fee for overseas passengers,’ is anticipated to assist cowl the nation’s huge funds deficit.
Who will likely be affected by the brand new cruise passenger tax in Mexico?
The Mexican ports of Cozumel, Costa Maya and Cabo San Lucas are standard stops for Caribbean cruises, notably for ships departing from Florida, Texas, and Los Angeles.
The price is prone to be added to passengers’ complete cruise ticket value reasonably than absorbed by cruise firms.
Over 10 million passengers go to Mexico by cruise ship yearly, with 3,300 cruise ship arrivals predicted for 2025, in accordance with the Florida and Caribbean Cruise Affiliation (FCCA).
The port of Cozumel receives greater than half of all Mexico’s seafaring passengers and is dubbed the ‘cruise capital of the world’: It welcomes round 4 million cruise passengers per 12 months, making it one of many world’s busiest ports.
Some Mexican states, such because the Quintana Roo ports, will already begin charging cruise passengers a $5 (€4.75) tax from 1 January 2025 to fund a Nationwide Catastrophe Prevention Fund. Subsequently, below the brand new legislation, cruise passengers on this area would want to pay a complete tax of $47 (€44.69).
Whereas most journey passenger taxes go on to bettering infrastructure, corresponding to port services or implementing extra sustainable fleets, it’s not clear why the brand new Mexico tax is being earmarked for the nation’s defence division – nevertheless, the Mexican military has beforehand constructed railways throughout the nation.
The cruise ship business is in opposition to Mexico’s proposed immigration levy
Most of the main business gamers warn that these new prices will deter ships from docking in Mexico and as an alternative go for cheaper Caribbean cruise locations.
Jamaica is one potential various: regardless of already charging a $20 (€19.01) tax per passenger, it’s nonetheless competitively priced.
“If this measure is applied, it could make Mexican ports of name among the many most costly on the earth, severely affecting their competitiveness with different Caribbean locations,” the Mexican Affiliation of Transport Brokers stated in an announcement.
Likewise, a public letter from the Florida and Caribbean Cruise Affiliation (FCCA), which represents 23 main cruise strains, stated that it could make Mexico 213 per cent costlier than the typical Caribbean port.
The FCCA acknowledged that the tax is making them actively think about “considerably altering itineraries”.
That is no idle menace – virtually twenty years in the past, the cruise business repositioned ships and rerouted itineraries to keep away from a hefty ‘head tax’ imposed at Alaskan ports.
The tax “may additionally jeopardize the cruise business’s investments within the nation, together with billions in deliberate developments and different initiatives,” the FCCA cautions.
Cruise firm Royal Caribbean Worldwide, for instance, is planning to open a non-public seashore membership in Cozumel in 2026, adopted by a water park attraction known as Good Day Mexico in 2027 close to the Costa Maya cruise port.
Mexico is considered one of a number of nations to introduce cruise initiatives amid overtourism issues
The variety of international ocean cruise passengers is on the rise. The Caribbean, Bahamas, and Bermuda are the preferred cruise locations.
In 2023, there have been 31.8 million passengers worldwide – however that quantity is estimated to succeed in 39.4 million by 2027, in accordance with Statista.
A number of standard cruise locations in Europe have launched charges to deal with overtourism, together with Amsterdam, and the Greek Islands of Mykonos and Santorini throughout the summer season months.
An rising variety of Caribbean nations, together with the Bahamas and Barbados, have already applied passenger departure taxes to fund environmental and sustainability targets.
