The Mexican government has significantly reduced its proposed cruise passenger tax, initially set at $42 per person, which was due to go into effect on July 1, 2025. Instead, a revised tax will commence at $5 per passenger starting July 1, 2025, and will incrementally increase in a phased rollout between this July and August 2028, when it will increase to $21.
The original cruise tax was vigorously opposed by the cruise industry and local governments where cruises are an important source of revenue. Negotiations were led by the Florida-Caribbean Cruise Association (FCCA), who argued that such a fee could deter cruise lines from including Mexican ports in their itineraries, adversely affecting local economies dependent on cruise tourism.
Last November, the FCCA issued a letter addressed to Mexico’s President, Dr. Claudia Sheinbaum, and signed by leading cruise ship executives. In it, FCCA CEO Michele Paige cited that plans to introduce a US$42 per-person tax would make cruise tourism in Mexico 213% more expensive than the average Caribbean port – and effectively price Mexican ports out of the cruise market.
“The Government’s plan to eliminate the ‘in-transit’ exemption status that has been in place for cruise passengers for over a decade impacts the livelihoods of tens of thousands of Mexican citizens, countless small businesses, and communities along Mexico’s coastlines that depend on cruise tourism,” Paige cautioned.
“The change will be particularly damaging to states like Quintana Roo where cruise tourism represents 40% of GDP,” said Paige in the letter.
In response, the Mexican government postponed the tax’s implementation from January to July 2025 and revised the fee structure to its current, more gradual increase.
On May 7, the FCCA issued the following statement:
On behalf of the Florida-Caribbean Cruise Association (FCCA) and our member cruise lines – representing over 95% of cruise capacity in the Caribbean and Latin America – we thank the Federal Government of Mexico for working with us to reach an “in transit fee” agreement that safeguards cruise tourism to the country and aims to enhance the benefits for local communities whose livelihoods depend on it.
“The cruise industry is a success story for Mexico, contributing roughly $1 billion USD in direct spending to the economy in the past year alone. This agreement demonstrates what we can accomplish together to foster opportunities for shared growth and success through ongoing, open dialogue and partnership with Mexico officials.
“As of July 1, cruise ship passengers docking in Mexico will be charged $5 USD, a fee that will be collected by the cruise companies. The fee will gradually increase to $10 USD on August 1, 2026, through June 2027. Then it will go up to $15 USD on July 1, 2027, through July 2028. Starting August 1, 2028, the fee will rise to $21 USD.”
This tax applies once per voyage, regardless of the number of Mexican ports visited or whether passengers disembark.
While the revised tax is lower than initially proposed, local media reports indicate that industry representatives continue to express concerns about its potential impact on cruise tourism and local economies. Ongoing discussions between the Mexican government and cruise industry stakeholders will continue to address these concerns.
