‘Cruise tax plans could devastate Mexico tourism’, industry warns
The cruise industry has voiced its concern over the government of Mexico’s plans to impose a new tax on cruise passengers
In a letter addressed to Mexico’s president Claudia Sheinbaum, Florida-Caribbean Cruise Association (FCCA) CEO Michele Paige said plans to introduce a £33 per-person levy – a move that would make cruise tourism in Mexico 213 per cent more expensive than the average Caribbean port – will effectively price Mexican ports out of the cruise market.
“The government’s plan to eliminate the ‘in-transit’ exemption status that has been in place for cruise passengers for over a decade impacts the livelihoods of tens of thousands of Mexican citizens, countless small businesses, and communities along Mexico’s coastlines that depend on cruise tourism,” Paige cautioned.
Paige expressed further disappointment and concern over the lack of consultation with cruise lines, given the long-standing relationship between Mexico and the cruise industry.
She warned that cruise lines are already anticipating significant reduced consumer demand for more expensive Mexico itineraries, which would result in itinerary changes that would reduce the 10 million-plus passengers and 3,300 cruise ship calls expected to visit Mexico in 2025.
Fewer cruise tourists would shrink the contributions cruise tourism makes to Mexico’s economy, including approximately US$1 billion in direct spending, more than 20,000 jobs, and more than US$200 million in wages annually.
“This proposed tax could also jeopardise cruise industry investments in the country – including billions in planned development and other projects – meant to help rebuild Acapulco, cultivate new Mexican tourist destinations, employ more Mexican seafarers, and provide social programmes to help  communities in Mexico,” Paige added.
“Cruise lines will inevitably reevaluate the viability of these investments considering the potential loss of consumer demand for Mexico cruises driven by the unprecedented tax increase on cruise tourism.”
She said the FCCA was “caught off guard” with last week’s unilateral decision to eliminate the in-transit exemption and efforts to fast-track this policy change “without any dialogue” with the industry.
“We are also concerned with the last-minute notification and implementation of this new policy expected to take effect in approximately one month,” she said.
“This gives us and our partners virtually no time to prepare and creates confusion and uncertainty for our guests because the majority of our cruises have already been sold for 2025.”
