Mexico has announced a new $42 immigration tax for cruise ship passengers docking at its ports, a decision sparking widespread criticism from the cruise industry. Approved by Mexico’s Congress, the tax will take effect next month and applies to all cruise visitors previously exempt under the "in transit" category.
The Florida-Caribbean Cruise Association (FCCA), representing the cruise industry, has voiced significant concerns over the new levy. "We were completely caught off guard with last week’s unilateral decision to eliminate the long-standing in-transit exemption and efforts to fast-track this policy change without any dialogue with the industry," said FCCA President Michelle Paige in a letter to Mexican President Claudia Sheinbaum.
The association warns that the tax will make cruising to Mexico 213% more expensive than the average Caribbean port, potentially steering travelers to more affordable destinations. Cruise lines also fear the move could reduce ship arrivals, impacting the tens of thousands of jobs tied to the sector.
Cruise tourism is a crucial part of Mexico’s economy, particularly in coastal regions such as Quintana Roo, where it contributes to approximately 40% of the GDP. James Ferrara, president of the travel agency InteleTravel, described the economic risks, stating, "The idea that they could risk that kind of revenue... and all that comes with it, all of the jobs, all of the development, the support services... It is transformational to the Mexican economy, so this does not make any sense."
Adding to the controversy, the allocation of revenue from the tax has raised eyebrows. Two-thirds of the funds are earmarked for the Mexican military, rather than for tourism-related improvements such as port infrastructure or measures to mitigate overtourism.
The FCCA and other industry leaders are calling for a reconsideration of the policy, urging Mexican authorities to engage in dialogue to balance economic sustainability with the country’s tourism goals. For now, the cruise industry is bracing for potential fallout as the implementation date approaches.
