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Time of India
30-06-2025
- Business
- Time of India
Mexico slaps cruise passengers with new tourist tax, fee set to quadruple by 2027
Starting this week, cruise passengers arriving in Mexico will be hit with a new tourist tax, a move that has stirred tensions between the cruise industry and the Mexican government, and left some local business owners fearing for their livelihoods, as per a report. New $5 Cruise Passenger Fee Begins This Week in Mexico The $5-per-passenger fee, which applies every time a cruise ship docks at a Mexican port, is set to gradually rise to $21 by 2027, as reported by New York Post. The charge will be folded into the price of the cruise, similar to how airlines include Mexico's tourist tax in airfare, according to the report. Rubén Olmos Rodríguez, who has participated in the tax talks and runs advisory firm Global Nexus, told the Wall Street Journal, 'The Mexican government's perspective is: 'OK, fine, you bring prosperity. But you need to pay accordingly, like other tourists pay when they come via an airplane,'' as quoted by New York Post. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Florida-Caribbean Cruise Association analysed that the new tax will be in addition to the port fees that cruise lines have already paid for years, which is an average of $28.85 per passenger in Cozumel, as per the report. The Florida-Caribbean Cruise Association estimated that approximately 3,300 cruise ships are projected to stop in Mexican ports this year, bringing about 10 million passengers with them, as reported by the New York Post. ALSO READ: Oracle stock soars after revealing massive $30 billion annual cloud deal in filing Live Events Cruise Lines Push Back on the New Tax While the tax has been reduced from the original $42 proposed by officials, major cruise operators Royal Caribbean and other cruise operators are pushing back by arguing that it drops off passengers who patronise Mexican businesses, as reported by New York Post. Local Business Owners Worry About Impact Meanwhile, the local business owners have voiced their concerns that the tax could discourage tourists from booking cruises that stop in Mexico, according to the report. Carmen Joaquín, who owns a duty-free shop and serves as president of Cozumel's business coordinating council told the New York Post, 'We, as business owners, were very concerned, because Cozumel lives on cruise tourism,' as quoted in the report. ALSO READ: Iran bans Elon Musk's Starlink, users now face prison, fines, even flogging According to the report, the cruise operator for months had worked together with local officials over taxation, hiring and local investment requirements, as government officials pressured the company to employ more Mexican workers and use more Mexican products across its supply chain. Tourist Tax To Help Avoid Social Program Cuts However, Mexican President Claudia Sheinbaum has highlighted that, the new tourist tax is a way to lower the nation's budget deficit without having to cut social programmes, as reported by the New York Post. ALSO READ: Peter Thiel faces backlash for backing Palantir — key facts Americans should be aware of FAQs How much is the new tourist tax in Mexico? It starts at $5 per passenger this week and will rise to $21 by 2027. Why is Mexico charging cruise passengers a new tax? The government wants cruise tourists to pay the same kind of tax that aeroplane passengers already do, as part of broader efforts to boost public revenue, as per the New York Post report.
New York Post
30-06-2025
- Business
- New York Post
Mexico to slap cruise passengers with tourist tax starting this week
Cruise passengers docking in Mexico will be forced to cough up a tourist tax starting this week as government officials blast major cruise lines for not paying their fair share into local communities. Industry giant Royal Caribbean, along with other cruise operators, has fought hard against the plan, arguing it drops off passengers who patronize Mexican businesses. Starting Tuesday, cruise passengers will face a $5 fee – which will jump to $21 over the next three years – when their ship stops at a Mexican port. It will be added to the cost of the cruise. 3 Starting Tuesday, cruise passengers will face a $5 fee when their ship stops at a Mexican port. Edgar Photosapiens – That's been negotiated down from a $42 tariff initially proposed by the Mexican government. The new tax stacks on top of port fees that cruise lines have already paid for years, averaging $28.85 per passenger in Cozumel, according to an analysis from the Florida-Caribbean Cruise Association. About 3,300 cruise shops are expected to stop in Mexican ports this year, bringing about 10 million passengers with them, according to the FCCA. Many airlines already fold a Mexican tourist tax into the cost of plane tickets. 'The Mexican government's perspective is: 'OK, fine, you bring prosperity. But you need to pay accordingly, like other tourists pay when they come via an airplane,'' Rubén Olmos Rodríguez, who has participated in the tax talks and runs advisory firm Global Nexus, told the Wall Street Journal. Local business owners, however, have raised concerns that the tax could discourage tourists from booking cruises that stop in Mexico. 'We, as business owners, were very concerned, because Cozumel lives on cruise tourism,' said Carmen Joaquín, who owns a duty-free shop and serves as president of Cozumel's business coordinating council. The new tax has heated up tensions between the Mexican government and Royal Caribbean, which is planning to build a massive private resort in Mahahual, a Mexican seaside village. Royal Caribbean did not immediately respond to The Post's request for comment. 3 A Carnival cruise ship in a Mexican port. Mariakray – For months, the cruise operator has tangled with local officials over taxation, hiring and local investment requirements, as government officials pressure the company to employ more Mexican workers and use more Mexican products across its supply chain. Royal Caribbean is expected to make millions from its Perfect Day Mexico resort, which will feature the world's longest lazy river, as well as a huge swim-up bar, party cabana and sombrero-themed slide. The 200-acre resort, expected to open in 2027, will be able to accommodate about 15,000 people a day, according to analysts from Stifel. Local Mahahual business owners are fearful that the Disneyland-like resort will prevent cruise passengers from spending money at local businesses. 'It sounds like they want to keep all the cake for themselves,' Amelie Gautier, a restaurant owner in the area, told the Journal. 3 Royal Caribbean is expected to make millions from its Perfect Day Mexico resort. Wollwerth Imagery – Royal Caribbean estimates it will cost around $292 million to buy the land needed for Perfect Day Mexico, and boasted that the project will create more than 1,000 construction jobs and employ more than 2,000 people, according to a company representative. The new tax on cruise passengers is expected to weigh on Royal Caribbean's earnings, though the resort could still add more than $125 million annually to earnings before interest, taxes and other items, according to Stifel analysts. Mexican President Claudia Sheinbaum saw the tourist tax as a way to lower the nation's budget deficit without having to slash social programs. But it has worsened relations between cruise operators and local Mexican officials, who at one point disinvited Royal Caribbean executives from a meeting, according to the Journal. Michele Page, chief executive of the FCCA, said the industry and the Mexican government are trying to 'get our relationship back on track.' The trade group is seeking a meeting between the chief executives of major cruise lines and Sheinbaum.
Yahoo
12-05-2025
- Business
- Yahoo
Cruise ship passengers must pay fee upon arriving in Mexico starting July 1
SAN DIEGO (Border Report) — Starting July 1, cruise-ship passengers arriving in any Mexican port will have to pay a $5 visitor fee. The Mexican government and the Florida-Caribbean Cruise Association arrived at a compromise this week to implement the tariff on visitors. The FCCA represents 95% of cruise ships that make ports of call in Mexico. Mexico postpones cruise ship passenger fee for six months Six months ago, the Mexican government wanted to institute a $42 tariff on each passenger. After complaints from cruise ship operators and the FCCA, the fee was negotiated down. Over the next three years, however, the fee will increase to $21 per passenger. It will be added to the cost of a cruise, visitors won't pay the fee directly to the Mexican government. 'We are grateful to Mexico's federal government for collaborating with us to reach an agreement on the transit fee that protects cruise ship tourism increasing benefits to local communities whose livelihood depends on it,' read an FCCA statement. Visit the homepage for the latest exclusive stories and breaking news about issues along the U.S.-Mexico border According to the FCCA, about 3,300 cruise ships are expected to stop in Mexican ports this year bringing 10 million passengers with them. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hindustan Times
10-05-2025
- Business
- Hindustan Times
Mexico just hit cruise passengers with a new 'visitor fee'— And it's not optional
In a recent development, passengers who arrive by cruise ships to any port in Mexico will have to pay up a $5 visitor fee. This rule will be applicable from July 1, as announced by the Mexican government and the Florida-Caribbean Cruise Association. Both entities arrived at this compromise to derive a tariff from visitors to these ports. Just six months ago, the Mexican government demanded that this tariff per passenger should be $42, but after long talks with the Florida-Caribbean Cruise Association (FCCA), the amount of $5 was fixed for now. This was mainly after complaints from cruise operators and the FCCA themselves. The fee was then negotiated on the basis of these complaints, citing the protection of cruise ship tourism. ALSO READ | After Ras Baraka's arrest, 2 other Democrats spotted breaching Delaney Hall ICE center However, according to Border Report, this amount will increase up to $21 in the next three years. Moreover, this fee will be directly added to the cruise package, and no separate payments have to be made by passengers to the Mexican government. The tour operators will be taking care of the same from their end. The Florida-Caribbean Cruise Association thanked Mexico's federal government in a statement, saying, "We are grateful to Mexico's federal government for collaborating with us to reach an agreement on the transit fee that protects cruise ship tourism, increasing benefits to local communities whose livelihood depends on it." As per FCCA data, more than 3,000 cruise ships will land up at Mexican ports over the year and will be bringing in nearly 10 million passengers. This would mean that Mexico's federal government will be earning more than $50 million in transit fee from cruise ship passengers within the year. Once this tariff increases, so will the government's earnings from it.
Yahoo
09-05-2025
- Business
- Yahoo
Mexico slashes controversial cruise tax after backlash
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. The Independent has contacted the FCCA and Mexico's National Confederation of Chambers of Commerce, Services and Tourism for comment.
