Cruise passengers docking in Mexico will be required to pay a tourist tax starting this week, as government officials criticize major cruise lines for not contributing enough to local communities.
Industry giant Royal Caribbean, along with other cruise operators, has strongly opposed the plan, arguing that passengers support Mexican businesses during their visits.
Beginning Tuesday, cruise passengers will be charged a $5 fee, which will gradually increase to $21 over the next three years, whenever their ship stops at a Mexican port. This fee will be added to the overall cost of the cruise.
The $5 fee is a negotiated reduction from the $42 tariff originally proposed by the Mexican government.
This new tax is in addition to existing port fees that cruise lines have paid for years, which average $28.85 per passenger in Cozumel, according to an analysis by the Florida-Caribbean Cruise Association.
About 3,300 cruise ships are expected to dock at Mexican ports this year, bringing roughly 10 million passengers, according to the Florida-Caribbean Cruise Association (FCCA).
Many airlines already include a Mexican tourist tax in the price of plane tickets.
“The Mexican government’s perspective is: ‘OK, fine, you bring prosperity. But you need to pay accordingly, like other tourists who arrive by airplane,’” said Rubén Olmos Rodríguez, who participated in the tax negotiations and runs the advisory firm Global Nexus, in an interview with the Wall Street Journal.
However, local business owners have expressed concerns that the new tax could discourage tourists from booking cruises that stop in Mexico.
“We, as business owners, are very worried because Cozumel’s economy relies heavily on cruise tourism,” said Carmen Joaquín, a duty-free shop owner and president of Cozumel’s business coordinating council.
The introduction of the tax has intensified tensions between the Mexican government and Royal Caribbean, which plans to build a massive private resort in Mahahual, a seaside village in Mexico.
A Carnival cruise ship docked at a Mexican port. Photo by Mariakra.
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“Our investment in the communities is about lifting up small business owners, nonprofits, residents, and more through community funding, environmental infrastructure, housing, and much more,” Jay Schneider, Royal Caribbean’s senior vice president and chief product innovation officer, told The Post in a statement.
“In partnership with Federal and State governments, these investments will help spark a generational transformation for Mahahual and the region for decades to come.”
Royal Caribbean’s upcoming Perfect Day Mexico resort is expected to generate millions in revenue. The 200-acre resort, set to open in 2027, will feature the world’s longest lazy river, a large swim-up bar, party cabanas, and a sombrero-themed slide. It will have the capacity to accommodate about 15,000 visitors daily, according to analysts at Stifel.
However, local business owners in Mahahual worry that this Disneyland-like resort will keep cruise passengers from spending money at their shops and restaurants.
Royal Caribbean is projected to earn millions from its Perfect Day Mexico resort.
