The Mexican government announced that changes to its Federal Law of Rights tax aimed at cruise passengers has been put off until June 2025.
While this fee charged on non-residents has been in effect since 1999, those travelling to Mexico aboard cruise ships were exempted from paying it.
However, the Mexican government decided to begin charging guests of cruise ships disembarking in Mexican ports US$42 each from January 2025 onwards.
An uproar from the cruise sector has led to the postponement of the implementation for at least another six months.
Potential repercussions
Most of the protests against the tax were raised by the Florida-Caribbean Cruise Association (FCCA).
FCCA officials pointed out that the tax could cause a 15 percent drop in cruise calls to Mexico, as cruise lines may opt to avoid Mexican ports.
They reminded authorities that most guests do not wish to pay up to US$168 in taxes for groups of at least four members.
This sentiment was echoed by the Mexican Association of Cruises (AMANAC) which warned of a progressive drop in arrivals that would hurt employment and income for various sectors in Mexico, particularly those in related fields like accommodations, retail, and transportation.
An unnecessary expense?
At $42 per person, the new tax would make Mexico one of the most expensive cruise destinations anywhere in the world.
As it stands, the proposed tax is already 213 percent higher than any charged in any part of the Caribbean.
It should be pointed out, however, that the Mexican government stood to earn substantial income from the imposition of the tax, particularly in light of projections that up to 10 million cruise passengers will be making their way to Mexico in the coming year.
