Cruise passengers traveling to Mexico may soon face a new $42 tax per person, regardless of whether they disembark the ship. Last week, Mexico’s Congress approved a new immigration levy that will apply to all cruise passengers docking at the country’s ports. Previously, passengers on cruise ships were exempt from any tourist taxes because they were classified as “in transit” under Mexico’s Non-Migrant Rights policy. James Ferrara, a travel expert and president of InteleTravel, noted that many cruise passengers never leave the ship. The new tax is expected to take effect next month.
Mexico’s Caribbean coast is a top cruising destination for Americans, with 3,300 ship visits expected in 2025. Cozumel, one of the world’s busiest ports, welcomed 2.94 million cruise passengers in 2022. In regions like Quintana Roo, cruise tourism makes up 40% of the local economy.
Several industry leaders have strongly opposed the new tax, urging Mexico’s Senate to reject the measure. They argue that the tax will drive tourists to cheaper Caribbean destinations like Jamaica. In a letter to President Claudia Sheinbaum, the Florida-Caribbean Cruise Association warned that the fee would make cruise tourism in Mexico 213% more expensive than the average Caribbean port, potentially driving cruise business away from Mexican ports.
FCCA President Michelle Paige expressed surprise at the decision, stating that the industry was caught off guard by the move to remove the long-standing in-transit exemption and the fast-tracking of the policy change without any prior discussion with the sector.
Michelle Paige also expressed concern about the fast-approaching implementation of the tax, noting that there is little time for the industry to prepare. She pointed out that most cruises for 2025 have already been sold, which could create confusion and uncertainty for passengers.
The potential loss of cruise passengers could have a negative impact on Mexico’s tourism economy, with 20,000 jobs tied to the cruise sector, according to the Mexican Association of Shipping Agents. James Ferrara emphasized the significance of the cruise industry to Mexico, saying that losing this revenue and the jobs tied to it, including support services like car rentals and tours, would be detrimental. He argued that such a move doesn’t make sense given the importance of the cruise sector to the country’s economy.
The new $42 tax per person means that a family of four would have to pay an additional $168, with the fee likely being collected by the cruise lines. James Ferrara noted that in cases of discounted cruises, this could account for up to 10% of the total cost.
While several popular cruise destinations have introduced fees to address overtourism, two-thirds of the revenue from Mexico’s new tax will be directed to the Mexican army rather than improving port infrastructure.
James Ferrara expressed the importance of having a conversation between the government, cruise lines, and travel retailers to find ways to protect the beautiful destinations they promote. He stated, “I believe it’s reasonable for all of us to discuss how we can protect these wonderful places,” and added that he remains hopeful for a better solution.