Cruise passengers heading to Mexico in early 2025 can breathe a sigh of relief – albeit a short one – as the nation’s government has announced its new Federal Law of Rights tax will be delayed by six months.
The “non-resident” fee, which has been in effect since 1999 but exempted cruise travel, was set to begin charging guests of cruise ships disembarking in Mexican ports $42 (860 Mexican pesos) per person in January 2025.
Following cruise industry uproar, Mexican authorities have now postponed the tax on cruise passengers until July 1, 2025.
The uproar comes largely from the Florida-Caribbean Cruise Association (FCCA), which fears the tax will cause a 15 percent drop in cruise calls. It says cruise lines will be forced to alter itineraries to avoid Mexican ports as they appeal to guests who don’t want to pay an additional $168 in fees as a family of four.
The Mexican Association of Cruises (AMANAC) expressed similar concerns, warning of a “progressive drop in arrivals” that would hurt employment and income for various sectors in Mexico, including suppliers, tour operators, and taxis.
“The impact of this tax on Mexican tourist destinations will be disastrous,” it believes.
Additionally, the FCCA says the reduction in cruise traffic will offset the intended tax revenues, significantly harming Mexico’s cruise tourism and the livelihoods of coastal communities.
“We thank the Mexican government for listening to our concerns and proposing a delay in the implementation of the tax that will fall mainly on American citizens,” said the FCCA’s CEO Michele Paige.
She added, “We look forward to the opportunity to continue meaningful dialogue around a balanced solution that protects Mexico’s communities, supports its vibrant tourism industry, and ensures the affordability of cruise travel for our guests.”
Cruise Industry Warns of Financial Fallout
The Federal Law of Rights, Ley Federal de Derechos, outlines various fees and charges for services provided by the federal government, including those related to tourism and immigration.
Historically, cruise ship passengers were exempt from certain immigration fees under this law as they are considered “in transit” travelers who typically remain on board or spend limited time ashore during port calls.
However, on December 3, 2024, the Mexican government dropped a bombshell by revealing it had passed new legislation that would impose the new tax for cruise travelers beginning January 1, 2025.
“The removal of the in-transit tax exemption – which was provided to our industry over a decade ago for valid reasons that still apply today – was done without our prior input and after the legislation was passed,” said Paige.
“It is ironic that until this law was abruptly announced the industry was looking to grow business in Mexico, and now the opposite will occur,” she continued.
Industry growth includes the construction of exclusive cruise destinations, such as Royal Caribbean’s new Royal Beach Club Cozumel, set to debut in 2026, and Perfect Day Mexico near Costa Maya, which is scheduled to open in 2027.
At $42 per person, the new tax would make Mexico one of the most expensive cruise destinations globally and 213 percent more expensive than the average Caribbean port.
With over 10 million cruise passengers expected in 2025, Mexico stands to make millions in taxes on cruise guests traveling to popular ports like Cancun and Puerto Vallarta.
However, communities already benefit from ship arrivals. Cruise passengers visiting Mexico in the first four months of 2024 alone were reported to have spent an average of $83.90 each.
Read Also: One of These Mexico Cruise Ports Could Be on Your Itinerary
AMANAC anticipates the loss of passengers and ship calls will equate to less income for communities, “fewer jobs and lower tax revenues for the government.”
The FCCA and AMANAC now have until July 1 to convince the Mexican government not to enforce the tax on guests. If they don’t, all eyes will remain on Mexico’s cruise ports as to whether they’ll be able to maintain their appeal.
