Mexico’s $42 cruise passenger tax delayed. Here’s when it will take effect
A new tax on cruise ship passengers visiting Mexico has been delayed following pushback from the industry.
The Florida-Caribbean Cruise Association said the $42-per-guest charge is now expected to take effect on July 1, 2025 rather than Jan. 1 following a meeting with Mexican government officials. “While the proposed postponement provides a temporary reprieve, FCCA stresses that more comprehensive measures are required to address broader concerns about the tax’s devastating impact on cruise tourism, Mexico’s economy, and the livelihoods of its coastal communities,” the trade organization said in a news release on Sunday.
Mexico’s Senate approved the measure last week after it passed in the lower house, the Associated Press reported. Two-thirds of funds collected will be earmarked for the country’s army.
What are tourist taxes?:Why travelers are expected to pay up
Cruise passengers were previously exempt from tourist taxes under the Non-Migrant Rights policy because they were considered in transit, according to the Mexican Association of Shipping Agents (AMANAC).
Mexico, home to marquee ports like Cozumel, is a massively popular cruise destination. More than 10 million passengers are expected to visit in 2025, according to the FCCA, and industry players have warned of the tax’s potentially dire ripple effects.
The group said the resulting loss in income would mean a decrease in available jobs and tax revenue. The statement continued, “Mexico will lose its competitiveness, becoming one of the most expensive cruise destinations in the world.”