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Mexico cuts proposed cruise tax ahead of summer season

Cruise Ships in Puerto Vallarta, Mexico
photo_camera Puerto Vallarta, Mexico

Mexico has slashed a proposed tax on cruise passengers set to come into effect this summer following pressure from the industry to review the levy

The country’s federal government initially planned to introduce a $42pp (£31) charge on cruise arrivals, but has since dropped the rate to $5pp (£3.75) when the tax is introduced on 1 July.

From August 2026 through to July 2027, it will increase to $10pp (£7.50) and then $15pp (£11.25) in 2027/2028.

According to industry journal The Maritime Executive, the levy will rise to $21pp (£15.75) – half the initial proposal – from November 2028.

The Non-Resident Duty was due to have been introduced on 1 January, with the original fee around three times the average imposed by Caribbean ports.

But the tax was delayed after concerns were raised by the Florida-Caribbean Cruise Association (FCCA) last year.

Cruise passengers visiting Mexican ports have been exempt from paying immigration fees for the past ten years as they were considered “in-transit”.

A spokesperson for the FCCA said: “On behalf of the Florida-Caribbean Cruise Association (FCCA) and our member cruise lines – representing over 95% of cruise capacity in the Caribbean and Latin America – we thank the Federal Government of Mexico for working with us to reach an “in transit fee” agreement that safeguards cruise tourism to the country and aims to enhance the benefits for local communities whose livelihoods depend on it.

“The cruise industry is a success story for Mexico, contributing roughly $1 billion USD in direct spending to the economy in the past year alone. This agreement demonstrates what we can accomplish together to foster opportunities for shared growth and success through ongoing, open dialogue and partnership with Mexico officials.”

When the levy was floated, FCCA CEO Michele Paige said the new tax will “effectively price Mexican ports out of the cruise market”.

“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,” she added.

 

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