Mexico Raises Fees for Cruise Ship Passengers, Sparking Fears of Tourism Decline
Mexico is bracing for a potential showdown between the government and the tourism industry after the Senate approved a controversial reform that would impose a $42 fee on each cruise ship passenger arriving at Mexican ports.
The measure, included in a broader overhaul of federal immigration laws, has ignited concerns that Mexico will lose its competitive edge in the Caribbean cruise market, driving tourists to cheaper destinations.
Business leaders have been vocal in their opposition, warning that the additional cost will deter visitors and severely impact small and medium-sized enterprises that rely heavily on tourism revenue.
“Significant Reduction” in Tourist Numbers Anticipated
Octavio de la Torre, president of the National Federation of Chambers of Commerce, Services and Tourism, expressed grave concerns about the potential consequences.
“Charging cruise ship visitors a $42 fee will lead to a significant reduction in tourist numbers, which will ultimately lead to serious consequences,” he stated. “This will severely affect small and medium-sized enterprises in the states of Quintana Roo, Baja California, Guerrero, Jalisco and Chiapas that rely on tourism activities.”
Experts estimate that the new fee will make Mexican ports 213% more expensive compared to other popular Caribbean cruise destinations.
The Mexican Shipping Agents Association echoed de la Torre’s concerns, emphasizing that the reform, which would allocate two-thirds of immigration tax revenue to the Ministry of Defense, could significantly impact the country’s competitiveness as a tourism destination.
Exemption Removed for Cruise Ship Passengers
Previously, cruise ship passengers were exempt from paying the immigration service fee, known as the “non-immigration fee,” because they slept onboard and some did not disembark during port calls. The new legislation eliminates this exemption, directly affecting the cost of cruises that include stops in Mexican ports.
The reform, which still needs final approval from the president, also includes other measures aimed at boosting government revenue, such as increasing the mining concession tax rate from 7.5% to 8.5% and raising fees for visits to nature reserves and airport immigration services.
While proponents of the reform argue that it’s necessary to strengthen government coffers and support essential services, the tourism industry fears the consequences will far outweigh any perceived benefits. As the debate intensifies, all eyes are on the government’s next move and the potential impact on Mexico’s vital tourism sector.
What are the anticipated economic consequences for businesses, particularly SMEs, in Mexican port cities reliant on tourism revenue from cruise ship passengers?
## Mexico’s Cruise Tax: Will it Sink Tourism?
**Interviewer:** Joining us today to discuss Mexico’s new $42 cruise passenger fee is Octavio de la Torre, president of the National Federation of Chambers of Commerce, Services and Tourism. Octavio, thank you for being here.
**Octavio de la Torre:** Thank you for having me.
**Interviewer:** This new fee has raised concerns about a potential decline in tourism. Can you elaborate on those concerns?
**Octavio de la Torre:** Absolutely. This significant increase in cost for cruise ship passengers is extremely worrisome. Mexico has built a strong reputation as a competitive destination in the Caribbean cruise market. This new fee threatens that position by making Mexico a less attractive option compared to other destinations with lower costs. [[1](https://www.travelweekly.com/Cruise-Travel/Mexico-Congress-votes-cruise-passenger-tax)]
**Interviewer:** What impact do you foresee this having on businesses, particularly small and medium-sized enterprises that rely heavily on tourism revenue?
**Octavio de la Torre:** The impact will be substantial. We anticipate a significant reduction in tourist numbers, which will directly affect businesses that cater to cruise ship passengers. Restaurants, shops, tour operators – all will feel the pinch. This could lead to job losses and a slowdown in economic activity in port cities reliant on tourism.
**Interviewer:** What steps is the National Federation of Chambers of Commerce, Services and Tourism taking to address this issue?
**Octavio de la Torre:** We are actively engaging with the government to voice our concerns and explore alternative solutions. We believe a more collaborative approach is needed to ensure the sustainability of the tourism industry while also addressing the government’s immigration goals.
**Interviewer:** Thank you for sharing your insights with us, Octavio.
**Octavio de la Torre:** Thank you for having me.
