Earlier this month, we wrote about a standoff that Florida Caribbean Cruise Association (FCCA) (they represent 23 cruise lines operating nearly 200 vessels in Floridian, Caribbean and Latin American waters) was having against Mexico regarding fees the country had voted to put into place in early 2025. You can read about the situation in this post.
Welp, it’s been about a week into this game of chicken, and it looks like one of them just blinked.
Mexico’s Cruise Tax: What’s Happening?
Multiple news outlets are reporting that Mexico’s new tax on cruise ship passengers who are visiting the country will be delayed, following pushback from the industry.
FCCA says that, following a meeting with Mexican officials, the fee will be delayed by six months, and won’t begin until July 1, 2025.
The amount of the fee – $42 per person – will remain unchanged.
Industry Pushback: FCCA’s Concerns
Although apparently happy with the delay, FCCA doesn’t sound too pleased that the fees will eventually come to life.
“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 trade organization said in a news release.
“The concept, for example, of a family of four visiting a Mexican cruise port having to pay an additional $168 in fees for just a few hours ashore, while tourists crossing the border by land who visit for seven days or less remain exempt from this tax, will have far reaching impacts,” FCCA continued.
Impact on Local Economies: Mexican Tourism’s Perspective
The FCCA isn’t the only organization that’s unhappy with the tax. Even tourism organizations in Mexico are suggesting it’s not a good idea. From the same news release:
“The impact of this tax on Mexican tourist destinations will be disastrous. If implemented, we expect to see a progressive drop in arrivals, which will significantly affect employment for taxi drivers, tour guides, artisans, waiters, restaurateurs, craft store owners, pharmacies, and more. This also impacts artisanal suppliers from regions like Chiapas, Guerrero, Oaxaca, Sinaloa and others who support the ports where cruise ships dock.”
The Mexican group also suggested that the resulting loss in income would mean a decrease in available jobs and tax revenue. The statement continued, “Mexico will lose its competitiveness, becoming one of the most expensive cruise destinations in the world.”
A 6-month reprieve is nice, but who knows what will happen as July 1st approaches. The ball is in the Mexican government’s court.
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