Cruise holidays to Mexico will get dearer as one of many world’s busiest ports plans so as to add a passenger tax.
Each passenger coming into Mexico by cruise ship might quickly be charged a $42 tax (€39.90) – whether or not they disembark or not.
The legislation is the newest effort to curb overtourism within the nation. Traditionally, Mexico’s vacationer taxes have focused lodge guests, whereas cruise ship travellers who’re deemed ‘in transit’ have been exempt.
Introduced after a vote by Mexico’s congress, two-thirds of Mexico’s proposed cruise passenger tax could be used to fund the Mexican military.
The legislation, which might apply from 2026, nonetheless must be permitted by the higher home. Nonetheless, the tax, which is being referred to as an ‘immigration doc fee for overseas passengers,’ is anticipated to assist cowl the nation’s monumental finances deficit.
Who can be affected by the brand new cruise passenger tax in Mexico?
The Mexican ports of Cozumel, Costa Maya and Cabo San Lucas are widespread stops for Caribbean cruises, notably for ships departing from Florida, Texas, and Los Angeles.
The payment is prone to be added to passengers’ complete cruise ticket price quite than absorbed by cruise firms.
Over 10 million passengers go to Mexico by cruise ship yearly, with 3,300 cruise ship arrivals predicted for 2025, in keeping with the Florida and Caribbean Cruise Affiliation (FCCA).
The port of Cozumel receives greater than half of all Mexico’s seafaring passengers and is dubbed the ‘cruise capital of the world’: It welcomes round 4 million cruise passengers per yr, making it one of many world’s busiest ports.
Some Mexican states, such because the Quintana Roo ports, will already begin charging cruise passengers a $5 (€4.75) tax from 1 January 2025 to fund a Nationwide Catastrophe Prevention Fund. Due to this fact, underneath the brand new legislation, cruise passengers on this area would wish to pay a complete tax of $47 (€44.69).
Whereas most journey passenger taxes go on to enhancing infrastructure, comparable to port amenities or implementing extra sustainable fleets, it’s not clear why the brand new Mexico tax is being earmarked for the nation’s defence division – nevertheless, the Mexican military has beforehand constructed railways inside the nation.
The cruise ship business is in opposition to Mexico’s proposed immigration levy
Most of the main business gamers warn that these new prices will deter ships from docking in Mexico and as an alternative go for cheaper Caribbean cruise locations.
Jamaica is one doable different: regardless of already charging a $20 (€19.01) tax per passenger, it’s nonetheless competitively priced.
“If this measure is applied, it could make Mexican ports of name among the many most costly on the planet, severely affecting their competitiveness with different Caribbean locations,” the Mexican Affiliation of Transport Brokers stated in a press release.
Likewise, a public letter from the Florida and Caribbean Cruise Affiliation (FCCA), which represents 23 main cruise strains, stated that it could make Mexico 213 per cent dearer than the common Caribbean port.
The FCCA acknowledged that the tax is making them actively take into account “considerably altering itineraries”.
That is no idle menace – virtually twenty years in the past, the cruise business repositioned ships and rerouted itineraries to keep away from a hefty ‘head tax’ imposed at Alaskan ports.
The tax “might additionally jeopardize the cruise business’s investments within the nation, together with billions in deliberate developments and different tasks,” the FCCA cautions.
Cruise firm Royal Caribbean Worldwide, for instance, is planning to open a non-public seaside membership in Cozumel in 2026, adopted by a water park attraction referred to as Good Day Mexico in 2027 close to the Costa Maya cruise port.
Mexico is considered one of a number of international locations to introduce cruise initiatives amid overtourism considerations
The variety of international ocean cruise passengers is on the rise. The Caribbean, Bahamas, and Bermuda are the most well-liked cruise locations.
In 2023, there have been 31.8 million passengers worldwide – however that quantity is estimated to achieve 39.4 million by 2027, in keeping with Statista.
A number of widespread cruise locations in Europe have launched charges to sort out overtourism, together with Amsterdam, and the Greek Islands of Mykonos and Santorini through the summer time months.
An rising variety of Caribbean international locations, together with the Bahamas and Barbados, have already applied passenger departure taxes to fund environmental and sustainability objectives.