In response to concerns from the cruise industry, Mexico's federal government has announced a six-month delay in implementing a proposed USD$42 fee for cruise passengers.
The fee, which was to take effect on 01JAN, will now be deferred until 01JUL 2025, following discussions with the Florida-Caribbean Cruise Association (FCCA), Seatrade Cruise News reports.
As previously reported, the FCCA cautioned that the tax could have consequences for Mexico's cruise tourism sector and economy. The association highlighted that the $42 per passenger fee is significantly higher than the average cost at Caribbean ports—213% more, in fact—raising questions about Mexico's competitiveness in the global cruise market.
FCCA President Michelle Paige noted that the fee would disproportionately impact families and short-term cruise visitors. For example, a family of four would face an additional USD$168 in fees for brief visits to Mexico, while tourists entering by land for stays under seven days remain exempt.
The FCCA warned that a 15% reduction in cruise calls could nullify the economic benefits of the tax, resulting in millions of dollars in lost revenue for local businesses, tours, and services. With more than 10 million cruise passengers expected in 2025, the association argued that decreased traffic could harm coastal communities reliant on tourism, undermining the tax’s intended purpose.
Paige expressed frustration with the removal of an in-transit tax exemption previously granted to the cruise industry over a decade ago, citing a lack of consultation prior to the legislation's passage.
She further criticized delayed communication from the federal government, stating it does not reflect a genuine commitment to work with an industry that has long contributed to Mexico's economy.
The FCCA says it will work with Mexican authorities to find a balanced solution that supports local communities, protects the tourism sector, and maintains affordable cruise travel.
