After Complaints from the Cruise Ship Industry, Mexico Postpones Tax for Cruise Line Passengers

The Mexican government has postponed the implementation of a $42 fee for cruise passengers, initially planned to take effect in January 2025.

The decision to delay follows objections from the cruise industry, including the Florida-Caribbean Cruise Association (FCCA) and the Mexican Association of Shipping Agents. The FCCA expressed concerns that the tax could significantly impact cruise tourism, among other industries, as reported by Border Report:

"While the proposed postponement provides a temporary reprieve, FCCA stresses that more comprehensive measures are required to address broader concerns about the tax's devastating impact on cruise tourism, Mexico's economy, and the livelihoods of its coastal communities"

The organization, however, emphasized that the postponement offers only temporary relief and called for further measures to address the tax's broader implications.

The $42 tax is meant to help fund military expenses, as the military manages the ports which service cruise lines. It was initially passed by the Mexican Senate last week. Cruise passengers, regardless of whether they disembark, will be subject to the fee, which marks a departure from Mexico's previous $35 tourist tax, which exempted cruise passengers.

For some, like Zach Lazzari, who owns an insurance agency catering to foreign vehicles driving in Mexico, the fee in itself is not a bad idea if "spent on environmental remediation and community infrastructure to support cruise ships docking" as cruise ships "are largely bad for the local bays and ports". However, as Lazzari explained to The Latin Times, funds deriving from these taxes would be destined elsewhere:

"Most of that money was earmarked for the military and, ultimately, Mexico pulled back as the higher fees risked losing passengers to other destinations without the fees"

According to the FCCA, over 10 million cruise passengers are expected to visit Mexico in 2025, making it one of the most popular destinations for cruise tourism, as Travel and Leisure reports. Major ports like Cabo San Lucas, Costa Maya, Ensenada, and Puerto Vallarta attract numerous visitors annually.

The levy aligns with global trends of increasing taxes on cruise tourism. For example, Venice, Italy, plans to double its "day trip" fee to €10 ($10.58) in 2025. However, the Mexican government's tax will make its ports among the most expensive worldwide.