Royal Caribbean is poised to build a vast and highly profitable vacation network — driven not solely by its cruise vessels but by its land-based portfolio.
05.12.2024 - 03:09 / euronews.com / Jennifer Marsden
Every passenger entering Mexico by cruise ship may soon be charged a $42 tax (€39.90) - whether they disembark or not.
The law is the latest effort to curb overtourism in the country. Historically, Mexico’s tourist taxes have targeted hotel visitors, while cruise ship travellers who are deemed ‘in transit’ have been exempt.
Announced after a vote by Mexico’s congress, two-thirds of Mexico’s proposed cruise passenger tax would be used to fund the Mexican army.
The law, which would apply from 2026, still needs to be approved by the upper house. However, the tax, which is being called an ‘immigration document payment for foreign passengers,’ is expected to help cover the country’s enormous budget deficit.
The Mexican ports of Cozumel, Costa Maya and Cabo San Lucas are popular stops for Caribbean cruises, particularly for ships departing from Florida, Texas, and Los Angeles.
The fee is likely to be added to passengers’ total cruise ticket cost rather than absorbed by cruise companies.
Over 10 million passengers visit Mexico by cruise ship every year, with 3,300 cruise ship arrivals predicted for 2025, according to the Florida and Caribbean Cruise Association (FCCA).
The port of Cozumel receives more than half of all Mexico’s seafaring passengers and is dubbed the ‘cruise capital of the world’: It welcomes around four million cruise passengers per year, making it one of the world's busiest ports.
Some Mexican states, such as the Quintana Roo ports, will already start charging cruise passengers a $5 (€4.75) tax from 1 January 2025 to fund a National Disaster Prevention Fund. Therefore, under the new law, cruise passengers in this region would need to pay a total tax of $47 (€44.69).
While most travel passenger taxes go directly to improving infrastructure, such as port facilities or implementing more sustainable fleets, it is not clear why the new Mexico tax is being earmarked for the country’s defence department - however, the Mexican army has previously built railways within the country.
Many of the major industry players warn that these new charges will deter ships from docking in Mexico and instead opt for cheaper Caribbean cruise destinations.
Jamaica is one possible alternative: despite already charging a $20 (€19.01) tax per passenger, it’s still competitively priced.
“If this measure is implemented, it would make Mexican ports of call among the most expensive in the world, severely affecting their competitiveness with other Caribbean destinations,” the Mexican Association of Shipping Agents said in a statement.
Likewise, a public letter from the Florida and Caribbean Cruise Association (FCCA), which represents 23 major cruise lines, said that it would make Mexico 213 per cent more expensive than the average
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In a move that’s left the cruise industry reeling, Mexico’s Congress has voted for a new tax of $42 per cruise passenger on a ship docking at a Mexican port. This new levy could take effect as early as next month. And if you’re thinking, “That’s fine, I’ll stay on board,” there will be no avoiding this extra charge. Whether you disembark or not, all passengers will need to pay $42. Previously, cruise passengers were exempt from tourist taxes under the “in-transit” provision of the Non-Migrant Rights policy.
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Cruise passengers in Mexico may have to pay more in 2025.