The Voice of the Cruise Industry
Features
MENU menu

CTN Investigates: how will cruise tax hikes impact the industry?

CTN Investigates

Ongoing global conflicts and protests against overtourism have forced cruise lines to search for safer and more welcoming waters. Will Payne asks what opportunities this might create for lesser-known ports that are ready to add their names to travellers’ wishlists

“Another one?”, I mutter as the Mexican government announces a new tax on cruise passengers. In December the sunny South American destination – one of the world’s most popular ports of call and the soon-to-be-home of Royal Caribbean’s second private island destination – joined the likes of Venice, Amsterdam, Barcelona, Norway and Bordeaux in introducing restrictions on cruise passengers.

Mexican officials voted to introduce a £33 levy on each cruise passenger to dock in its international ports. In response, Florida-Caribbean Cruise Association (FCCA) CEO Michele Paige said the plans, which would make cruise tourism in Mexico 213 per cent more expensive than the average Caribbean port, would “effectively price Mexican ports out of the cruise market”.

The FCCA also warned that the proposal would shrink the contributions cruise tourism makes to Mexico’s economy, including approximately £800 million (US$1 billion) in direct spending, more than 20,000 jobs, and more than £160 million (US$200 million) in wages annually.

“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,” Paige added.

However, there’s always a silver lining. As cruise lines consider diverting their ships away from these financial sanctions, it creates an opportunity for lesser-known destinations to benefit from tourism that might not have normally come their way.

Countries such as Belize, Cuba, Nicaragua and Honduras – all of which are ripe for cruise travellers thanks to their mix of culture, cuisine and spectacular coastline. Something for everyone. However, South America isn’t the only place where cruise is facing an upstream battle.

The conflict in the Red Sea and Russia’s invasion of Ukraine have forced numerous operators to reposition vessels to different locations. One of these cruise lines is Noble Caledonia, which recently partnered with Tourism is Life (TIL) to bring travellers to Sierra Leone after it diverted sailings away from the Red Sea to West Africa.

Alieya Kargbo, travel director for TIL, will be part of the team overseeing the shore excursions for the line in 2025. “Many cruise companies have enquired, and it’s great that Noble Caledonia has confirmed dates for Guinea, Sierra Leone and Liberia in October 2025,” he says.

Kargbo confirms that conversations with Scenic USA and Holland American Line for shore excursion partnerships are ongoing, saying that he isn’t surprised the destination is attracting swathes of cruise operators.

“Sierra Leone offers warm hospitality, a range of historic sites and miles of white sandy beaches, not to mention the iconic black sand beach. There are also local cooking classes, adventure activities, wildlife parks, community support projects and rich culture. And don’t forget the beautiful weather. There really is something for everyone.”

In 2025 Kargbo expects the country to facilitate inbound tourism by lifting its visa restrictions on UK visitors, which currently requires Brits travelling to Sierra Leone to pay £64 ($80 USD) for a 90-day single entry pass.

“We will also see more site development, like the Innovation Centre at Tacugama which can even host events for cruise lines and their passengers,” he adds. Cruise being blamed for issues such as overtourism and damage to local environments – whether rightly or wrongly – is nothing new, and this is unlikely going to change any time soon.

While the sector continues to make steps in the right direction, major ports altering their policies does give rise to new destinations that are ready to welcome cruise tourists with open arms, thanks to the industry’s positive impact in creating jobs and boosting local economies.

Here, we highlight five emerging destinations which could benefit from popular ports reducing their cruise visitation numbers.

Namibia

Located just north of South Africa, Namibia is distinguished by the Namib Desert, which hugs the coast of the Atlantic Ocean. Here, guests will find a range of diverse wildlife, like cheetah, black rhino, oribi and zebra, making the country the ideal option for guests looking to add a safari onto their cruise holiday.

The country’s flagship port of call is Walvis Bay, which features as a stop on Cunard, MSC Cruises and Norwegian Cruise Line itineraries. The port town is home to a tidal lagoon where guests can spot sea life, such as dolphins and whales.

Further inland, guests will find a host of high-octane activities at Dune 7 – the highest sand dune on earth and the starting point of the Namib Desert – including sandboarding and quad biking.

With more lines opting to reposition vessels south away from the Red Sea, it’s likely we’ll see more ships calling into this beguiling southern African gem.

Rotterdam

Heads turned when the Amsterdam City Council announced plans in June 2024 to relocate its cruise terminal away from the city centre in a bid to combat “nuisance” and over-tourism.

But after the dust settled, alternatives began to appear. One of those was Rotterdam, just south of the Dutch capital and accessible by the Nieuwe Waterway. Nick Hoogeweij, executive manager of Cruise Port Rotterdam, says the city receives around 135 ships a year from 20 different lines.

“Rotterdam is popular due to its architecture, where visitors can discover buildings dating back to 1100, as well as the strikingly contemporary Markthal,” he says. Rotterdam is also in close vicinity to Kinderdijk, which has 19 UNESCO-protected windmills; and The Hague, renowned for its Gothic-style architecture and being home to the UN’s International Court of Justice.

All of these selling points, coupled with its prime location, make Rotterdam a one-to-watch cruise destination.

Nicaragua

Due to its popularity, it’s highly unlikely Mexico will be eliminated from cruise lines’ destination rosters, even if plans to hike a tax on cruise tourists go ahead next summer.

However, the act of introducing such a bill could deter Brits from visiting somewhere which views them in a negative light. Therefore, surrounding countries like Nicaragua, set between the Pacific Ocean and the Caribbean Sea, could see an influx of visitors.

The South America destination is known for its diverse terrain of lakes, volcanoes and beaches, as well as its coffee plantations. Travellers can head to farms in Matagalpa to take guided tours and sample local brews before a bag of beans home with them as souvenirs.

Lake Managua and its iconic stratovolcano Momotombo in the north of the country offers a day trip visitors will be hard pressed to forget, thanks to its imposing 1,394 metre cliff face and lush surroundings.

Thrill seekers can take a day trip to the Cerro Negro part of the volcano, where guides lead them to the top of the ashen slope before visitors board down on sleds.

Pauillac

When Bordeaux mayor Pierre Hurmic called for a complete ban on “eyesore” cruise ships, alarm bells rang. “More and more people in Bordeaux are being disturbed by the arrival of cruise ships in the city centre, and it’s becoming increasingly unpleasant,” he claimed.

Again, when one door closes, another opens. Ships en route to Bordeaux sail past Pauillac, a popular port of call for the likes of Cunard, Ponant and Viking. Sitting on the Gironde, the town is famous for its showstopping wines, with fruity cabernet sauvignons and spiced merlots among some of its most prized varieties.

Visitors can book tastings in historic countryside chateaux or soak up the town’s café culture, where local specialties like Arcachon oysters and lamb are served up on a daily basis.

Tallinn

St Petersburg was once one of Northern Europe’s most popular ports of call, thanks to its opera house and rich imperial history. However, since Russia’s invasion of Ukraine, cruise lines have repositioned vessels away from the port to nearby destinations, such as Tallinn in Estonia.

Sitting on the Gulf of Finland in the north, the Estonian capital is unsurprisingly the country’s cultural hub, with its beautifully kept cobblestone old town housing a selection of quaint cafés and shops, which orbit Kiek in de Kök, a 15th-century defensive tower that resides above a network of once-secret tunnels.

Its Gothic Town Hall and St Nicholas Church, meanwhile, were both constructed in the 13th century, with the latter exhibiting stunning collections of religious art.

Sign In

Lost your password?