Mexico Proposes $42 Cruise Passenger Tax, Drawing Industry Backlash

The tax, set to take effect in 2025, aims to generate revenue but faces criticism for potentially jeopardizing Mexico's position as a leading cruise destination.

• Mexico's Congress has approved a $42 per passenger immigration tax for cruise ships docking at its ports, with implementation expected in 2025.
• The tax eliminates a longstanding exemption for cruise passengers considered 'in transit,' potentially increasing costs by 213% compared to other Caribbean destinations.
• Two-thirds of the tax revenue will be allocated to Mexico's military, sparking concerns about its limited reinvestment in tourism infrastructure.
• The cruise industry warns the tax could lead to significant reductions in ship arrivals, passenger numbers, and local economic benefits, risking $1 billion in annual spending and over 20,000 jobs.
• Critics argue the measure could make Mexican ports some of the most expensive globally, prompting cruise lines to reroute itineraries to more affordable destinations.

3 Articles

USA TODAY Forbes The Independent