Mexico’s cruise industry is facing an increase in fees as one of the busiest ports in the country plans to impose a passenger tax. The new law would require every cruise ship passenger entering Mexico to pay a $42 tax, regardless of whether they disembark or not. The tax, which is expected to take effect in 2026, will see two-thirds of the revenue allocated to fund the Mexican army. Popular cruise stops such as Cozumel, Costa Maya, and Cabo San Lucas are expected to be affected by this new tax.
With over 10 million passengers visiting Mexico by cruise ship annually, the new tax is expected to have a significant impact on the industry. The port of Cozumel alone receives more than half of all Mexico’s seafaring passengers and is considered the ‘cruise capital of the world’. Some regions, such as Quintana Roo, have already started imposing a $5 tax on cruise passengers to fund a National Disaster Prevention Fund. This new tax will add to the overall cost for passengers visiting these areas, potentially making Mexican ports among the most expensive in the world.
The cruise industry has expressed concerns over the new tax, with major players warning that it could deter ships from docking in Mexico in favor of cheaper Caribbean destinations. The Mexican Association of Shipping Agents has stated that the tax would make Mexican ports 213% more expensive than the average Caribbean port, potentially impacting the competitiveness of the country as a cruise destination. The Florida and Caribbean Cruise Association has also warned that the tax could lead to alterations in cruise itineraries and jeopardize investments in the country by cruise companies.
Mexico’s decision to introduce a cruise passenger tax is part of a wider trend of countries taking measures to address overtourism concerns in popular cruise destinations. With the number of global cruise passengers on the rise, countries like the Bahamas, Barbados, and several European destinations have implemented departure taxes to fund environmental and sustainability goals. The cruise industry has faced similar challenges in the past, with ships rerouting itineraries to avoid hefty taxes imposed at ports. Mexico’s new tax could potentially influence cruise companies’ investment decisions in the country, including planned developments and future projects.
It remains unclear why the revenue from the new tax in Mexico is being allocated to the country’s defence department, rather than towards infrastructure improvements or sustainability initiatives in the cruise industry. Despite the opposition from the cruise industry, the implementation of the tax is expected to help cover Mexico’s budget deficit. As the debate continues, it remains to be seen how the new tax will impact the cruise industry in Mexico and whether it will lead to changes in cruise itineraries and passenger preferences. The decision to introduce the tax reflects Mexico’s commitment to addressing overtourism and finding sustainable solutions for managing the influx of cruise ship passengers in the country.
