The cruise industry and Mexico have reached an agreement to postpone the implementation of the new passenger tax.

 Andrea Santillan

According to the Florida-Caribbean Cruise Association (FCCA), the $42 tax for cruise passengers visiting Mexico has been deferred by six months and will now take effect on July 1, 2025, instead of the originally planned date of January 1, 2025.

FCCA negotiated its postponement during a meeting last Friday with the Mexican government. In an announcement shared with the press, the cruise industry association pointed out that the new tax is 213% higher than the average cost demanded by Caribbean ports and could have a “devastating impact on cruise tourism, Mexico’s economy, and the livelihoods of its coastal communities.”

 

Much Higher Costs to Cruise

To illustrate its point, the FCCA said a family of four would have to budget an additional $168 just to spend a few hours onshore.

It warned that cruise passengers who spend a fraction of their time in the country could be discouraged from visiting, forcing cruise lines to change their itineraries while negatively affecting Mexico’s tourism-driven economy. 

With over 10 million passengers projected for 2025, the FCCA mentioned that even if vessels reduced visits by 15%, the North American country risks losing millions of dollars in revenue, defeating the primary purpose of the immigration fee.

The organization added that fewer passengers mean fewer employment opportunities for tour guides, taxi drivers, waiters, craft store owners, restaurateurs, artisans, pharmacies, and others who benefit from passenger arrivals.

FCCA Wants a More Collaborative Agreement

FCCA CEO, Michele Paige, stated that such changes would have been better received if the input of industry groups had been sought. Though the legislation has been finalized, Paige remarked that the FCCA still welcomes the chance to engage with the Mexican government. 

“We look forward to the opportunity to continue meaningful dialogue around a balanced solution that protects Mexico’s communities, supports its vibrant tourism industry, and ensures the affordability of cruise travel for our guests,” she shared.

Adding pressure on Mexican authorities, the executive also mentioned that the FCCA has received invitations from Central America and Caribbean cruise destinations should its member companies wish to alter its Mexico-bound itineraries.

$5 Local Infrastructure Fee Will Push Through

Aside from the immigration fee, Mexico is introducing a $5 local infrastructure fee for Quintana Roo, which will affect Western Caribbean cruises to Cozumel and Costa Maya. The new levy is another expense passengers must plan for starting in early 2025.