Mexico state has started a new tourist tax for cruise passengers, starting at $5 and rising to $21 by 2027. This move has initiated conflict with cruise lines. Those who argue that they already contribute significantly through port fees and passenger spending.
Starting this week, cruise passengers arriving in Mexico will be subject to a new tourist tax. This move has stirred tension between the cruise industry and the Mexican government, leaving some local business owners concerned about their livelihoods, according to a report.
The $5 per passenger fee, which applies every time a cruise ship docks at a Mexican port, is set to increase to $21 by 2027, as reported by The New York Post. The charge will be folded into the price of the cruise, similar to how airlines include Mexico’s tourist tax in airfare, as per the report. Ruben Olmos Rodriguez, who has participated in the tax talks and runs advisory firm, Global Nexus, told 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,” as quotes by New York post.
The Florida Caribbean Cruise Association analysed that the new tax will be in addition to the port fees that cruise lines have already paid for years, which is an average of $28.55 per passenger in Cozumel, as per the report. The Florida Caribbean Cruise Association estimated that approximately 3,300 cruise ships are projected to stop in Mexican ports this year, bringing about 10 million passengers, as reported by The New York Post.
While the tax has been reduced from the original $42 proposed by officials, major cruise operators, such as Royal Caribbean, are pushing back by arguing that it discourages passengers from patronising Mexican businesses, as reported by the New York Post. Meanwhile, the local business owners have voiced their concerns that the tax could discourage tourists from booking cruises that stop in Mexico, according to the report.
Carmen Joaquin, who owns a duty-free shop and serves as president of Cozumel’s business coordinating council, told the New York Post, “We as business owners were very concerned because Cozumel lives on cruise tourism,” as quoted in the report. According to the report, the cruise operator had collaborated with local officials for months on taxation, hiring, and regional investment requirements. Government officials had pressured the company to employ more Mexican workers and use more Mexican products across its supply chain. However, Mexican President Claudia Sheinbaum jas highlighted that the new tourist tax is a way to lower the nation’s budget deficit without having to cut social programmes, as reported by the New York Post.
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