Mexico has scrapped its contentious $5-to-$21 cruise passenger tax after facing significant industry pushback. The original plan, introduced in December, aimed to impose a $42 immigration levy on every passenger, to start on January 1 of this year. However, amid strong criticism, the tax was postponed to July, and now, the government has effectively canceled the measure entirely.
The Florida-Caribbean Cruise Association (FCCA), representing over 95% of cruise capacity in the Caribbean and Latin America, issued a statement expressing gratitude for the government’s collaboration to reach an ‘in transit fee’ agreement. The FCCA emphasized that the compromise ‘safeguards cruise tourism to the country and aims to enhance the benefits for local communities whose livelihoods depend on it.’
The tax, if enacted, was planned to gradually increase to $10 on August 1, 2026, then to $15 by July 1, 2027, and $21 by July 2028. However, this progressive plan has been halted, with the FCCA and cruise industry stakeholders successfully lobbying for its removal. Industry experts like Stewart Chiron, a Miami-based cruise expert, anticipated an ‘amicable solution’ following the initial tax announcement, warning that some passengers might opt to skip visiting Mexico if an additional fee was imposed. With about 16.9 million U.S. passengers cruising in 2023, the decision is seen as a key victory for the cruise industry in protecting its tourism revenue and maintaining its competitive edge.