Mexico delays implementing $42 cruise fee for six monthsMexico delays implementing $42 cruise fee for six months

Following a meeting with Mexican government officials on Friday, the Florida-Caribbean Cruise Association acknowledged the federal government’s decision to delay the implementation of a $42 immigration fee for cruisers.

Instead of taking effect Jan. 1, this means a temporary reprieve to July 1.

The FCCA said more comprehensive measures are required to address broader concerns about what it called the tax’s 'devastating impact on cruise tourism, Mexico’s economy and the livelihoods of its coastal communities.'

'Serious questions about Mexico's competitiveness'

According to the association, the $42 per passenger fee is 213% more than the average cost at Caribbean ports, 'raising serious questions about the competitiveness of Mexican destinations in the global cruise market.'

Making its case, the FCCA said a family of four would have to pay an additional $168 in fees for calls stretching just hours, while tourists crossing the border by land who visit for seven days or less remain exempt from this tax.

The association warned that 'placing such a burden on cruise tourists with minimal time actually spent in Mexico will deter visitors, alter cruise itineraries and create economic ripple effects in communities that heavily rely on cruise tourism.'

Related:Cruise lines hope for resolution after Mexico OKs law with $42 fee

Reduced calls would offset projected revenue

The FCCA said even a modest 15% reduction in cruise calls to Mexican ports could negate the intended economic benefits of the tax. With over 10m passengers expected in 2025, even a minimal decrease in cruise traffic would result in millions of dollars in lost revenue for local businesses, tours and services, 'offsetting or even surpassing the total tax revenue projected from the measure.' This 'could inflict significant harm on Mexico’s tourism-dependent communities, undermining the tax’s purpose.'

FCCA CEO Michele Paige emphasized the importance of addressing long-term concerns despite the temporary delay.

'We thank the Mexican government for listening to our concerns and proposing a delay in the implementation of the tax that will fall mainly on American citizens,' Paige said. 'However, the removal of the in-transit tax exemption — which was provided to our industry over a decade ago for valid reasons that still apply today — was done without our prior input and after the legislation was passed. It is ironic that until this law was abruptly announced the industry was looking to grow business in Mexico, and now the opposite will occur.'

Seeking meaningful dialogue

Paige said the delayed communication from Mexico's federal government 'does not demonstrate an authentic commitment' to collaborate with an industry that has a long-standing history of economic impact in the country.

'We look forward to the opportunity to continue meaningful dialogue around a balanced solution that protects Mexico’s communities, supports its vibrant tourism industry and ensures the affordability of cruise travel for our guests,' she added. 

Further, Paige thanked the 'many other destination partners we have across Central America and the Caribbean who have already reached out to our member lines and invited them to relocate itineraries to their jurisdictions with open arms.'