Mexico imposes new tourist tax on cruise passengers, fee to rise fourfold by 2027
Mexico has begun charging a new tourist tax on cruise ship passengers, beginning this week. The new regulation imposes a $5 fee per passenger each time a cruise ship docks at a Mexican port. The charge will be gradually increased to $21 by 2027, according to a report by the New York Post , quoted by ET Bureau.
The tourist tax is being automatically added to cruise ticket prices, in the same way airlines include Mexico’s tourist taxes in airfares. The move has drawn criticism from major cruise operators and concern from local business owners in port towns like Cozumel, which depend heavily on cruise tourism.
According to New York Post report, cruise lines already pay existing port fees averaging $28.85 per passenger in ports such as Cozumel. The Florida-Caribbean Cruise Association estimates that about 3,300 cruise ships are expected to dock in Mexico in 2025, bringing around 10 million tourists.
Rubén Olmos Rodríguez, who was involved in the tax discussions and runs the advisory firm Global Nexus, explained the government’s rationale to the Wall Street Journal: “The Mexican government’s perspective is: ‘OK, fine, you bring prosperity. But you need to pay accordingly, like other tourists pay when they come via an airplane.’”
Initially, the proposed fee was $42 per passenger, but it was reduced following talks with cruise industry representatives. Despite the reduction, cruise companies including Royal Caribbean have expressed concerns that the rising tax could discourage bookings on routes that include Mexican ports.
Local business leaders have also voiced their opposition. Carmen Joaquín, president of Cozumel’s business coordinating council and owner of a duty-free store, told the New York Post: “We, as business owners, were very concerned, because Cozumel lives on cruise tourism.”
Cruise operators have been in discussions with Mexican authorities over various issues, including taxation, hiring practices, and sourcing of local goods. The government has encouraged cruise lines to employ more Mexican workers and integrate more domestic products into their supply chains.
As per ET Bureau, Mexican President Claudia Sheinbaum defended the decision, saying the tax is intended to help reduce the country’s budget deficit while preserving spending on social programmes, New York Post reported.
The tourist tax is being automatically added to cruise ticket prices, in the same way airlines include Mexico’s tourist taxes in airfares. The move has drawn criticism from major cruise operators and concern from local business owners in port towns like Cozumel, which depend heavily on cruise tourism.
According to New York Post report, cruise lines already pay existing port fees averaging $28.85 per passenger in ports such as Cozumel. The Florida-Caribbean Cruise Association estimates that about 3,300 cruise ships are expected to dock in Mexico in 2025, bringing around 10 million tourists.
Rubén Olmos Rodríguez, who was involved in the tax discussions and runs the advisory firm Global Nexus, explained the government’s rationale to the Wall Street Journal: “The Mexican government’s perspective is: ‘OK, fine, you bring prosperity. But you need to pay accordingly, like other tourists pay when they come via an airplane.’”
Initially, the proposed fee was $42 per passenger, but it was reduced following talks with cruise industry representatives. Despite the reduction, cruise companies including Royal Caribbean have expressed concerns that the rising tax could discourage bookings on routes that include Mexican ports.
Local business leaders have also voiced their opposition. Carmen Joaquín, president of Cozumel’s business coordinating council and owner of a duty-free store, told the New York Post: “We, as business owners, were very concerned, because Cozumel lives on cruise tourism.”
Cruise operators have been in discussions with Mexican authorities over various issues, including taxation, hiring practices, and sourcing of local goods. The government has encouraged cruise lines to employ more Mexican workers and integrate more domestic products into their supply chains.
As per ET Bureau, Mexican President Claudia Sheinbaum defended the decision, saying the tax is intended to help reduce the country’s budget deficit while preserving spending on social programmes, New York Post reported.
Next Story