Latest news with #Non-ResidentDuty
Fox News
14-05-2025
- Business
- Fox News
Mexico rolls back its controversial new tax on cruise ship visitors
A tourism tax was rocking the boats in the cruise industry, imposing a charge on passengers. A $42 immigration levy for every passenger on cruise ships that dock in Mexico was voted in by the country's congress back in December, The Associated Press reported at the time. The Non-Resident Duty was to begin collection on Jan. 1 of this year. Then, due to strong criticism, the tax was pushed back to July. Now the tax has been dropped to $5 and will be implemented on July 1, the Florida-Caribbean Cruise Association (FCCA) confirmed to Fox News Digital. "On behalf of the FCCA and our member cruise lines – representing over 95% of cruise capacity in the Caribbean and Latin America – we thank the Federal Government of Mexico for working with us to reach an 'in transit fee' agreement," the FCCA told Fox News digital. The association added that the move "safeguards cruise tourism to the country and aims to enhance the benefits for local communities whose livelihoods depend on it." The fee will gradually increase to $10 on Aug. 1, 2026, then will jump to $15 on July 1, 2027, through July 2028. Starting August 1, 2028, the fee will rise to $21. Before the tax delay was announced, Fox News Digital spoke with Stewart Chiron, a Miami-based cruise industry expert known as "The Cruise Guy." He anticipated that some sort of "amicable solution" would be made between cruise industry executives following the initial tax announcement. He also said that cruise passengers may opt "to skip" visiting Mexico if they had to pay an additional fee. About 16.9 million passengers from the United States cruised in 2023, according to the Cruise Lines International Association.
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.
