A new tax on cruise ship passengers visiting Mexico has been postponed after industry opposition.
The Florida-Caribbean Cruise Association said the $42 per guest charge is now expected to go into effect on July 1, 2025, instead of January 1, after a meeting with Mexican government officials. “While the proposed deferment provides a temporary reprieve, FCCA emphasizes that more comprehensive measures are needed to address broader concerns about the tax’s devastating impact on cruise tourism, the Mexican economy and the livelihoods of coastal communities,” the trade body said in a news report. edition on Sunday.
Mexico’s National Confederation of Chambers of Commerce, Services and Tourism did not immediately respond to a request for comment on the delay.
Mexico’s Senate approved the measure last week after it passed in the lower house, the Associated Press reported. Two-thirds of the money raised will go to the country’s military.
View of the Discovery Princess and Carnival Panorama cruise ships in Los Cabos, Mexico on February 21, 2024.
What are tourist taxes?: Why travelers are expected to pay
According to the Mexican Association of Shipping Agents (AMANAC), cruise passengers were previously exempt from tourist taxes under the non-migrant rights policy because they were considered in transit.
Home to major ports such as Cozumel, Mexico is an extremely popular cruise destination. More than 10 million passengers are expected to visit by 2025, according to the FCCA, and industry players have warned of the potentially dire consequences of the tax.
“The impact of this tax on Mexican tourist destinations will be disastrous,” the Mexican Association of Cruises said in the same press release on Sunday. “If this is implemented, we expect a gradual decline in arrivals, which will have a significant impact on employment for taxi drivers, tour guides, artisans, waiters, restaurateurs, handicraft shop owners, pharmacies and more. This also impacts artisan suppliers from regions such as Chiapas, Guerrero, Oaxaca, Sinaloa and others who support the ports where cruise ships dock.”
The group said the resulting loss of income would mean a decrease in available jobs and tax revenue. The statement continued: “Mexico will lose its competitiveness and become one of the most expensive cruise destinations in the world.”
Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.
This article originally appeared on USA TODAY: Mexico cruise passenger taxes postponed by 6 months
