It looks like a compromise has been reached with a proposed tourist tax on cruise ship passengers visiting Mexico.
In early December 2024, Mexico's Congress voted to implement a cruise tourist tax that would have applied to every person visiting the country on a ship.
The proposal was for a $42 per person fee to enter the country. That's per sailing, not per port.
Mexico is one of the top cruising destinations in the world, with an over 10 million passengers estimated to visit the country by cruise ship in 2025.
The potential impact of such a high tax would have created major problems and likely resulted in ships turning away, negatively impacting the country and the cruise lines.
Riviera Maya News is reporting the Mexican government has agreed to cut the tax from $42 USD per passenger to just $5 USD per passenger.
The new tax goes into effect July 1, 2025.
According to State Senator Eugenio Segura Vázquez, the Derecho de No Residente (DNR) fee will gradually increase.
Passengers visiting on a cruise ship in 2025 will pay $5, but that will go up to $10 in 2026 and $21 in 2027.
For its part, the cruise lines made concessions too.
They promised to increase the number of cruise passengers to Mexican ports, promote infrastructure projects such as the fourth pier in Cozumel and the acquisition of domestic supplies, especially artisanal products, for sale on cruise ships.
Controversial since proposed
The new tax was met almost immediately with concern.
Mexico's goal was to ensure cruise lines contribute more to the country’s economic development, but such a high tax rate was eye-opening to many.
The Florida-Caribbean Cruise Association (FCCA) warned such a hefty tax could deter visitors, alter cruise itineraries, and create economic ripple effects in communities that heavily rely on cruise tourism.
If just 15% of cruise ships dropped calls to Mexico, the result would be a negative economical impact that could undermine the intended purpose of the tax to begin with.
"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," the FCCA explained.
Plus, it seemed to be unfairly targeting cruisers. Tourists crossing the border by land who visit for seven days or less would have been exempt from the tax.
Almost as soon as the tax was passed, negotiations began between the cruise industry and Mexican officials.
The following day the cruise passenger tax was postponed until July 1, 2025.
Royal Caribbean has big plans in Mexico
The deal is good news for Royal Caribbean, which is on the verge of opening new projects in Mexico.
First up is the Royal Beach Club opening in Cozumel in 2026.
This is a private beach area exclusive to Royal Caribbean cruisers, and will include access to swim-up bars, pools cabanas to rent, snorkeling, kayaking, restaurants, and street markets.
It's an optional add-on cost for passengers to be able to enjoy a curated and beautiful day maintained by the cruise line.
Royal Caribbean has even grander plans beyond that when it opens Perfect Day Mexico.
The cruise line has purchased the port of Costa Maya, and it will transform the area into a giant playground for its passengers.
Similar to Perfect Day at CocoCay, the version in Mexico is double the size, roughly 200 acres in total.
You'll find beaches, slides, excursions, and many ways to enjoy a day in Mexico.
During an earning call with Wall Street investors last week, Royal Caribbean International President and CEO Michael Bayley said we can expect more details soon about both of these projects, "we have a big event that we're hosting in New York City in a couple of weeks, and we'll be talking about the destination portfolio and sharing some of the images and concepts that will be coming alive in the coming years. "
