The cruise industry has tried to be a good partner with destinations in the Caribbean, Mexico, and the Bahamas, which ships visit regularly. That has included not fighting reasonable port taxes where the proceeds are invested into port areas and helping the community that supports cruises.
Royal Caribbean and Carnival have also partnered with local governments to make sure that new private destinations in Nassau’s Paradise Island and Freeport support the local community. They have worked carefully to be additive to the communities they are calling on and making efforts to consult with local leaders before making big moves.
Related: Carnival Cruise Line shares why crew members don’t get a day off
The cruise industry, however, through the Florida Caribbean Cruise Association (FCCA), a not-for-profit trade organization composed of 23 member cruise lines operating nearly 200 vessels in Floridian, Caribbean and Latin American waters, has decided to push back on a new port tax the Mexican government wants to implement.
Mexico’s government has approved a $42 per person tax that would apply to every person visiting the country on a cruise ship whether they got off or not. A previous tourist tax of $35 did not apply to cruise ship passengers.
The $42 tax will help fund military expenses, as Mexico’s military manages the ports that service cruise lines.
The FCCA has pushed back on the tax, and Mexico has delayed its implementation until July 1.
Now, the trade association, which represents Royal Caribbean, Carnival Corp., MSC Cruises, Norwegian Cruise Line, and others in the industry, is pushing for more.
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Stores selling local crafts would suffer if fewer ships stop in Mexico.
Image source: Dan Kline/Come Cruise With Me
The $42 port tax would hurt Mexico
The FCCA, it should be noted, isn’t against port taxes. It just sees this one as punitive and makes it clear that the $42 per passenger number would cause cruise lines to call on Meixcan ports less often.
“This is a staggering 213% more than the average cost at Caribbean ports, raising serious questions about the competitiveness of Mexican destinations in the global cruise market,” the association shared.
The biggest issue is the difference between a cruise port visit and people visiting for a longer stay.
“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 warns that placing such a burden on cruise tourists with minimal time actually spent in Mexico will deter visitors, alter cruise itineraries, and create economic ripple effects in communities that heavily rely on cruise tourism,” it shared.
Now, after successfully getting the implementation of the tax delayed, the FCCA wants to bring the Mexican government to the negotiating table.
Cruise association wants Mexico to negotiate
The FCCA has been very clear in its opposition to the $42 tax.
“We do not accept the $42 fee,’ FCCA CEO Michele Paige told SeaTrade Cruise News.
“She said Carnival Corp. & plc’s Josh Weinstein, Royal Caribbean Group’s Jason Liberty, Norwegian Cruise Line Holdings’ Harry Sommer and MSC Group’s Pierfrancesco Vago — whose companies represent the bulk of Mexico’s cruise traffic — have indicated they’re ready at a moment’s notice to fly to Mexico City if they can meet with ‘the right people,'” the website reported.
The FCCA wants to meet with the Mexican government to share its objections and point out that the tax will not have the planned impact if the cruise industry decided to visit Mexico less often.
Even a modest 15% reduction in cruise ship calls to Mexican ports could negate the intended economic benefits of the tax,” according to the FCCA.
And while cruise lines have already sold 2025 and even 2026 cruises that call on Meixcan ports, cruise lines reserve the right to change ports.
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The Mexican Association of Cruises sides with the FCCA.
“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,” the trade group shared. “…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.”
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