Mexico’s Congress has thrown a potentially serious monkey wrench into the cruise industry with a plan to charge every cruise visitor to Mexico a $42 tax even if they don’t leave the ship.
Previously, cruise passengers had been exempt from any immigration fee because they were considered transit passengers, similar to people changing planes at an airport. Unlike many countries where such taxes are earmarked for port and tourism construction and maintenance, tw0-thirds of this levy are to go to Mexico’s military.
Mexico’s ports are a big draw, especially on shorter cruises. Mexico’s Caribbean coast has over three thousand port calls scheduled for 2025, and Cozumel is one of the world’s busiest cruise ports. In the Yucatan state of Quintana Roo, tourism accounts for 40% of revenue, including cruises.
The tax is scheduled to take effect next month, drawing anguished protests from cruise companies, whose cruises for the next year are largely already booked without the tax in mind. For passengers on budget 4-day cruises, it could amount to over 10% of total cost.
Michele Paige, CEO of industry group Florida Caribbean Cruise Council said: “We were completely caught off guard with last week’s unilateral decision to eliminate the long-standing in-transit exemption and efforts to fast-track this policy change without any dialogue with the industry.” She warned that the move might cause cruises to choose lower-cost destinations such as Jamaica instead.
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UPDATE
Mexico has delayed the start of the new tax from January 1 to July 1, providing some relief for already-booked cruises, but still leaving the industry concerned about long term effects. The Florida Caribbean Cruise Council, an industry lobby, called the move a “temporary reprieve,” and said long-term solutions are needed.