Latest news with #cruiseTax
Yahoo
17-05-2025
- Business
- Yahoo
Mexico cruise tax compromise is good news for cruisers, port towns
The cruise industry's efforts to stop a $42 per-passenger cruise tax proposed by the Mexican government seems to have been successful. Cruise industry leaders were blindsided by the plan last fall and have since been meeting with Mexican government officials to find a balanced solution that supports Mexico's tourism industry and keeps Mexico cruises affordable for they were focused on collaboration with Mexico, cruise industry leaders warned that it wouldn't be difficult for cruise lines to adjust itineraries to swap Mexican ports of call with other destinations if the $42 tax was implemented as planned on July 1. Even a small drop in cruise ship traffic could mean millions of dollars in lost revenue for local businesses in communities that depend on tourism, cancelling out the tax's intended economic benefits. It appears that the Mexican government listened to both cruise industry leaders and concerned port town residents, and came up with a better Mexican government has not completely dropped the planned cruise tax, but has significantly decreased it. Instead of charging $42 for each passenger beginning July 1, Mexico will introduce the cruise tax at a rate of $5 per passenger to start, according to Riviera Maya News. The cruise tax is expected to double in 2026 and increase again in 2027 and 2028, however. It will increase to $10 for 2026 and rise gradually, eventually reaching $ new tax amounts, which are intended to increase cruise tourism's contribution to Mexico's economic development, have been agreed upon by the Federation of Cruise Services and Related Activities (FSCA) and the Mexican government, according to Mexican Senator Eugenio Segura Vázquez. Riviera Maya News reports that the agreement includes 'commitments from the cruise ship companies to increase the number of cruise passengers to Mexican ports, promote infrastructure projects such as the fourth pier in Cozumel and the acquisition of domestic supplies, especially artisanal products, for sale on cruise ships.'Although the cruise industry has yet to comment on the Mexico cruise tax compromise, Carnival Corp. CEO Josh Weinstein previously expressed an optimistic outlook about the ongoing tax talks during a state of the industry panel at the Seatrade Cruise Global conference on April 8. 'We had an amazing meeting with the governor of Quintana Roo and others, and everything is moving in the right direction for hopefully something that's incredibly collaborative in its approach,' Weinstein said, as reported by Cruise Industry Royal Caribbean, and other cruise lines have recently been focused on expanding cruise options visiting Mexican ports. Reaching a compromise with Mexico is especially good news for Royal Caribbean, since the cruise line is currently making major investments, developing new cruise destination experiences in Mexico to better serve passengers who want to explore the western Caribbean. Royal Beach Club Cozumel is set to debut in 2026, and Perfect Day Mexico is expected to open in Costa Maya in 2027. Like its popular private island in The Bahamas, Perfect Day at CocoCay, Perfect Day Mexico will feature a waterpark, pools, beaches, restaurants, bars, and other experiences, all developed with locally inspired designs and flavors. (The Arena Group will earn a commission if you book a cruise.) , or email Amy Post at or call or text her at 386-383-2472.
Travel Weekly
16-05-2025
- Business
- Travel Weekly
Cruise lines are signaling a fight against Hawaii's tourism tax
A battle may be brewing over a new 11% tax on cruise lines in Hawaii after the cruise industry warned state officials that it considers the legislation a violation of the U.S. Constitution. The state legislature signed off on a bill May 2 that would for the first time tax cruise lines, based on the number of days their ships are docked in Hawaii, with the proceeds then funneled toward environmental causes. The legislation also increases the existing Transient Accommodations Tax applied to short-term rentals and hotels from 10.25% to 11%. The fee will be burdensome to both cruise lines and their passengers, Norwegian Cruise Line Holdings said, with Hawaii's per-passenger port fees and taxes expected to increase from $200 to $350. And several travel advisors and policy experts said they anticipate the tax could be a tourism deterrent. Before the law was voted on, CLIA hinted in written testimony to Hawaiian lawmakers that if the bill passed, the state would face legal action from the cruise industry. But the legislature was steadfast, and Gov. Josh Green celebrated what he called the "green fee," which his office called a "priority piece of legislation for his administration." "The impact of travel to Hawaii will cover our needs as we deal with climate change and superstorms and all of the things that we've known to be true after the wildfires," Green said in a video he shared on social media. "We're grateful. This is a true legacy moment so that we can deal with our environmental needs." The legislation earmarks the funds for natural resource protection, climate-resilient infrastructure, management of park and beach destinations and the mitigation of tourism's environmental impact. CLIA's April 2 letter to the Hawaii House Finance Committee argued that the law would violate the U.S. Constitution's Tonnage Clause, which says states can't tax ship tonnage without congressional approval. It also cited federal law that restricts non-federal parties from imposing taxes and fees on vessels sailing in U.S. waters. "We strongly urge the committee to ensure that taxes and fees proposed under the measure are allowable under federal law and do not expose the state to potential liability or risk of legal challenge," said the letter. "For these reasons, we respectfully request that the committee amend this measure to avoid conflicts with federal law." Peter Walsh, a Florida-based attorney who specializes in maritime law, said that in a potential legal battle, the cruise industry may also argue that the green fee violates the commerce clause of the U.S. Constitution. "Individual states are prohibited from enacting legislation that places an undue burden on interstate or foreign commerce," Walsh said. "We also have to remember that maritime law … historically limited the ability of states to regulate ships engaged in foreign or interstate travel, reserving much of that authority to the federal government." Gauging the impact of the tax CLIA did not provide comment on the passage of the legislation, but an NCLH spokesperson said the tax would negatively impact cruisers, cruise lines and communities in Hawaii. "The added financial burden not only affects our guests but also presents challenges for us as cruise operators -- impacting local businesses and communities that depend on a thriving cruise industry," the spokesperson said. Norwegian Cruise Line is the only cruise line that offers weekly sailings in the Hawaiian Islands, on its Pride of America ship. Jay Johnson, president of Coastline Travel Group, said he doesn't expect the tax to deter people from cruising in Hawaii, but he does think it could keep cruise lines from the destination if their operating expenses grow. "Tourism has become low-hanging fruit for governments to tax because it does not affect local citizens, thus making it easier to pass if a local vote is required," Johnson said. "Raising the tax for local citizens is never popular. But by claiming it won't affect local citizens, only tourists, then it becomes much more palatable for voters to agree to the tax." However, Jonathan Helton, a policy researcher with the Grassroot Institute of Hawaii, a think tank supporting small government, said that cruise passengers are likely to be hit with higher prices due to the tax, which may have an impact. "Obviously, people will still come to Hawaii," he said. "It's beautiful. But at the margins, higher prices are going to encourage people to look elsewhere for a vacation." He sees a better model in charging out-of-state visitors fees to visit certain Hawaiian destinations, such as parks. Walsh said that Hawaii's decision to tax cruise lines could affect locations far beyond the state's borders. "Hawaii's move could set a precedent for other coastal destinations, and it's crucial that both travelers and cruise companies understand the implications," he said. The state's passage of the tax comes shortly after the cruise industry successfully negotiated a decrease to a similar cruise tax proposed in Mexico late last year. Originally planned to be $42 per passenger, the country will now charge $5 per cruiser in its first year, according to the Florida-Caribbean Cruise Association, maxing out at $28 a head in 2028.
The Independent
09-05-2025
- Business
- The Independent
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.
Travel Weekly
07-05-2025
- Business
- Travel Weekly
Trade group negotiates lower Mexico cruise tax
Mexico's cruise tax will be $5 per passenger when it is introduced on July 1, a significant reduction from the previously announced $42, according to the Florida-Caribbean Cruise Association (FCCA). The rate will increase to $10 on Aug. 1, 2026; $15 on July 1, 2027; and $21 on Aug. 1, 2028. The FCCA said it negotiated the agreement with the Mexican government. The deal "safeguards cruise tourism in Mexico," the FCCA said. "This milestone reflects the FCCA's core mission: fostering open dialogue and building partnerships to promote sustainable growth and shared value throughout our destinations," the FCCA said. Mexico's Congress initially approved a $42 head tax in November, scheduling implementation for Jan. 1. By December, it was delaying implementation to July after receiving cruise industry backlash. In a letter to Mexico President Claudia Sheinbaum, the FCCA had claimed that cruising to Mexico would become 213% more expensive than the average Caribbean port of call if the $42 tax were implemented. Mexico has a tourism tax, but only for overnight visitors. Those entering the country by cruise ship have been exempt because passengers come and go the same day.
