FCCA warns against Mexico’s plan to tax cruise ship passengers

This article was updated following a meeting between the FCAA and Mexican government officials on Monday, December 9.

In a move, Mexican lawmakers recently approved a measure to impose a $42 per person fee on every cruise ship passenger docking in the country. Florida-Caribbean Cruise Line Association (FCCA) would confuse travelers and could discourage investment in cruise ports and discourage port calls.

Mexico’s Senate has voted to eliminate a long-standing exemption from the country’s immigration tax for cruise ship passengers. The exemption is in place because such tourists typically do not disembark, and if they do, they only stay in Mexico for a short period of time.

This exemption is similar to that applicable to travelers transiting through Mexican airports to other international destinations.

FCCA strongly rejects new tax proposals

In a letter to newly elected Mexican President Dr. Claudia Sheinbaum, FCCA CEO Michele Paige said the new tax could impact “tens of thousands of ”

The impact is particularly severe in the state of Quintana Roo, where Cozumel is the most visited cruise ship port in the world, Page wrote.

“The proposed tax could also jeopardize the country’s cruise industry investments, including billions of dollars in planned developments and other projects that are designed to help rebuild Acapulco, foster new Mexican tourism destinations, and employ more Mexican sailors and provide social programs to help underserved communities in Mexico,” Page added. “Considering that unprecedented tax increases in the cruise industry may result in reduced consumer demand for Mexican cruises, cruise lines will inevitably re-evaluate the viability of these investments.”

Mexico’s National Federation of Chambers of Commerce, Services and Tourism and the Mexican Association of Shipping Agents also condemned the tax, saying it would make other cruise ports more competitive with Mexico.

The legislation has been approved by Mexico’s House of Representatives and will take effect in January if it remains unchanged. Page said the law was passed quickly without consultation with the cruise industry, leaving cruise lines with little time to notify passengers, some of whom had already booked flights to Mexican ports.

FCCA calls for urgent dialogue with the Mexican government to withdraw or modify the tax plan.

After a meeting with Mexican government officials on Friday, the FCCA acknowledged the federal government’s decision to delay the implementation of the new Federal Rights Act for cruise ship passengers from January 1 to July 1, 2025. While the proposed delay provides temporary reprieve, the FCCA highlights the need for more comprehensive measures to address broader concerns about the tax’s devastating impact on the cruise tourism industry, Mexico’s economy and the livelihoods of its coastal communities.

This article first appeared on Prevue’s sister site Recommend.com.