Mexico slashes controversial cruise tax after backlash

Independent

09-05-2025

The Mexican government has U-turned on a hefty cruise tax that would have charged $42 per passenger for docking at its ports.
Mexico's federal government has reportedly agreed to a lower amount and a phased roll-out of the cruise tax after pressure from the cruise industry and local governments where cruises contribute to the economy, industry magazine The Maritime Executive reported, citing Mexican newspapers.
Negotiations, which started in December, delayed the rollout for six months. Initially, the federal government announced in late 2024 that it would end an exemption for cruise passengers from the tourist tax charge known as a 'Non-Resident Duty'.
The tax was to be set at $42 per passenger as of 1 January 2025, in addition to potential higher costs depending on local port taxes.
The government then allowed for this to be delayed until 1 July, giving the cruise industry time to adjust to the new taxes as well as starting negotiations to find a compromise.
The Florida-Caribbean Cruise Association (FCCA), which represents 23 cruise lines such as Carnival, P&O and Royal Caribbean, was heavily involved in striking a compromise with the government.
In December, the association sent a letter to Mexico's president, Claudia Sheinbaum, claiming that the tax would make cruise tourism in Mexico 213 per cent more expensive than the average Caribbean port, stating that the country would be priced out of the market.
"This proposed tax could also jeopardise cruise industry investments in the country – including billions in planned development and other projects – meant to help rebuild Acapulco, cultivate new Mexican tourist destinations, employ more Mexican seafarers, and provide social programs to help underserved communities in Mexico', the FCCA's CEO Michele Paige wrote.
After months of talks, Mexican media is reporting that a deal is now in place, with the tax on passengers significantly reduced from its initial $42 starting point.
The tax will still begin in July, but at $5 per person, which will stay in place for the next 13 months. From August 2026 to July 2027, it will then increase to $10 per person and then $15 in 2027-2028. By November 2028, it will increase to $21 per passenger. The fee will be collected once per itinerary.
The FCCA celebrated the tax reduction, saying in a statement: 'We thank the Federal Government of Mexico for working with us to reach an 'in transit fee' agreement that safeguards cruise tourism to the country and aims to enhance the benefits for local communities whose livelihoods depend on it.
"The cruise industry is a success story for Mexico, contributing roughly $1 billion USD in direct spending to the economy in the past year alone.
"This agreement demonstrates what we can accomplish together to foster opportunities for shared growth and success through ongoing, open dialogue and partnership with Mexico officials."
Cruise lines have also agreed to support port infrastructure projects, such as a proposed fourth pier in Cozumel, as well as promote Mexican goods aboard their ships, The Maritime Executive said.