In early December, Mexico passed a massive tax that would impact cruisers, but not people who visit the country for longer stays via air or land.
That was a move widely opposed by the Florida Caribbean Cruise Association, a trade organization that represents much of the industry. The FCCA saw the tax as punitive to cruise line passengers.
Now, the Mexican government has suspended implementation of the tax for six months. The tax will now take affect on July 1.
Once implemented, the new tax will be $42 for every passenger who visits a Mexican port. The tax will be whether or not the passenger actually gets off the ship in that port.
The FCCA called the $42 tax a “staggering more than 213% increase over the average cost of a Caribbean port. It also shared serious doubts that the Mexican ports could remain competitive with an added tax that high..
Cruise lines may rethink stopping in certain Mexican ports if the tax gets implemented..
Image source: Shutterstock
Mexico adds time to negotiate port tax
“The concept, for example, of a family of four visiting a Mexican cruise port and to spend an extra $168 in fees for a few hours ashore, while tourists crossing the border by land and stay for seven days or less remain exempt from the tax will have far-ranging impacts,” the trade association shared.
The FCAA also shared that even a 15% reduction in tourism with offset the benefit of the tax.
“ the impact of this tax on Mexican tourist destinations will be disastrous,” shared the Mexican Association of Cruises. “ if implemented, we expect to see a progressive drop in arrivals, which will significantly impact employment for taxi drivers, tour guides, artisans, waiters, craft store owners, pharmacies, and more.”
FCAA CEO Michele Page believes it’s very important to address the long-term issues during the reprieve before the tax gets implemented.
“We thank the Mexican government for listening to our concerns and proposing a delay of 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’s 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 in Mexico, and now, the opposite will occur.”
