Monday, 9 December 2024

Mexico hits cruise ships with new taxes


Add Mexico to the list of countries that is fighting back against the intrusive and costly wave of cruise ship visits.

The Florida-Caribbean Cruise Association (FCCA) has been spooked after the Mexican government passed a new tax on cruise passengers.

Cruise passengers will face an additional US $42 per person in taxes on top of the current average of US $20 in other taxes and fees the FCCA says is required to visit Mexican ports, news portal Travel Mole reports.

The association says this effectively prices Mexican ports out of the cruise market - which may well be the idea given the increasing cost of catering for cruise ships and the damage they cause the environment.

The law was passed without consultation or any input from the cruise industry, the FCCA says, adding the new tax could disrupt the travel plans of over 10 million passengers expected to visit Mexico in 2025.

“We appreciate President [Claudia] Sheinbaum’s assurance that the change will happen slowly and that she’s instructed federal officials to work with our industry, but we haven’t heard from anyone yet,” FCCA CEO Michele Paige said.

The FCCA says member lines are "eager to collaborate with the government to gain clarity on the details of this implementation and work together to chart a constructive path forward".

“Mexico has long been a cornerstone of the cruise market, that has delivered significant economic benefits to both the industry and local communities,” said Paige.

“However, the unilateral decision to eliminate the in-transit tax exemption without engaging industry stakeholders undermines our partnership.”

The association says cruise ship calls generate over $1 billion in direct spending annually and support more than 20,000 jobs across various sectors.

The FCCA wants Mexican officials to engage in immediate dialogue to address industry concerns.

“Joint efforts between the government and the cruise industry are essential to creating sustainable growth that benefits all parties,” Paige added.

“We are hopeful we can work together to find solutions that preserve Mexico’s vital role in the cruise market.”

Image: Lauren Hudon, Scop.io 

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