A huge increase in port taxes and fees that was scheduled to go into effect next month for all cruises to Mexico has been delayed for six months.
Last week, Mexico announced that port taxes and fees that cruise ship passengers have to pay for visiting ports in the country was going to triple from $20 to $62 per person.
This would make ports in Mexico 213% more expensive than the average port in the Caribbean. The overwhelming majority of cruises to the Western Caribbean visit at least one port in Mexico.
The Florida-Caribbean Cruise Association (FCCA) lead the fight against this huge tax increase with a meeting with Mexican government officials this past Friday.
Mexico has decided to delay their new Federal Law of Rights tax on cruise passengers from January 1 until July 1, 2025.
The Mexican Association of Cruises gave the following statement:
“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. Less income means fewer jobs and lower tax revenues for the government.
Mexico will lose its competitiveness, becoming one of the most expensive cruise destinations in the world.”
Michele Paige, CEO of FCCA, emphasized the importance of addressing long-term concerns despite the temporary delay. She said:
“We thank the Mexican government for listening to our concerns and proposing a delay in the implementation of the tax that will fall mainly on American citizens.
“However, the removal of the in-transit tax exemption – which was provided to our industry over a decade ago for valid reasons that still apply today – was done without our prior input and after the legislation was passed. It is ironic that until this law was abruptly announced the industry was looking to grow business in Mexico, and now the opposite will occur.”
