In a shocking move that stunned the cruise industry last fall, the Mexican government introduced a plan to impose a $42 per-person tax on cruise passengers beginning in 2025 that industry leaders say would make cruising in Mexico 213% more expensive than the average Caribbean port. Cruise passengers were previously exempt from Mexico’s tourist fee.
The tax is expected to take effect July 1, but cruise industry leaders have been meeting with Mexican government officials in a concerted effort to stop it.
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The Florida-Caribbean Cruise Association (FCCA), which has been leading the talks with Mexico, said that the cruise industry wasn’t consulted about the new tax prior to the policy’s announcement and that the impact on cruise tourism wasn’t fully considered.
If implemented, the new cruise tax would likely result in a reduction in cruise ship calls to Mexican ports that could cancel out the tax’s intended economic benefits. More than 10 million passengers are expected to cruise to Mexico in 2025, and even a slight decrease in cruise traffic would result in millions of dollars in lost revenue for local businesses, tours, and services in communities that depend on tourism, according to FCCA.
The cruise industry wants to work together with Mexico to find a balanced solution that supports Mexico’s tourism industry and keeps cruising there affordable for cruise passengers.
Carnival Corp. CEO Josh Weinstein has been involved in the discussions with Mexico. He shared an update on the effort to find a path forward that benefits all parties during a state of the industry panel at the Seatrade Cruise Global conference on April 8.
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Carnival Cruise Line sails to multiple ports in Mexico including Cabo San Lucas.
Image source: Carnival Cruise Line
Carnival CEO stresses collaboration with Mexican government
Although Weinstein has previously pointed out that it wouldn’t be difficult for cruise lines to adjust their itineraries to avoid Mexican ports of call, he emphasized during the recent panel discussion that the industry is focused on collaboration with Mexico.
He’s optimistic that they’re making progress toward a solution that supports the future of cruise tourism in the popular destination.
“The FCCA has been amazing, working incredibly hard, along with the members, along with countless folks in Mexico. I think at this point in time, I’d say there’s a lot of positivity that’s building,” Weinstein said, as reported by Cruise Industry News.
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Weinstein is hopeful that good news is on the way.
“Unfortunately, as of this moment, there’s nothing official to report, but I would say, I think that we had an amazing meeting with the governor of Quintana Roo and others, and everything is moving in the right direction for hopefully something that’s incredibly collaborative in its approach.”
Mexico cruise tax situation offers a lesson
Weinstein also stressed the importance of proactive collaboration in the future.
“Getting educated mutually and understanding what your needs are, what our needs are — we wouldn’t be here if the process had been done differently,” he pointed out. “Learning from the experience is really important, that we use it and get some benefit out of it.”
Keeping communication lines open with cruise destinations is key.
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“If there are jurisdictions that have needs, we need to sit down with you before you take action so that we can try to help figure out a path forward that is truly collaborative and can work for everybody. And we’re getting there now, which is great,” Weinstein said.
He wants to make sure these kinds of discussions happen before any legislation that impacts the cruise industry is introduced in the future.
“It would be great if in the future, when these types of things pop up, we can go about it more collaboratively up front.”
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