Cruise lines and the ports they visit are often partners on a broad level. Typically, the two entities work together to balance the impact of bringing thousands of people to a destination versus the economic benefit it generates.
When a cruise line docks at a port, there are multiple costs. First, the cruise line pays a docking fee which is usually hourly. Secondly, most ports charge a passenger tax which is paid for each person on board the ship, even if they do not disembark.
Related: What the US government's Bahamas travel warning means for cruise ships
In addition to paying a tax that normally goes toward port development and maintenance, cruise passengers spend money. That could mean buying local products, eating at restaurants, and much more.
Most cruise destinations in the Caribbean need tourists to keep their economies afloat. The Covid pandemic was devastating for many of these destinations because tourism simply stopped.
However, the cruise industry has fully recovered and is now larger than it was in 2019. That has been fantastic for countries where ships are asking to add tens or even hundreds of millions to their economies.
In most cases, cruise lines and their destinations work together to decide what is fair when it comes to taxes and other port fees. Now, four major cruise lines have opposed a proposed tax that would make calls at Meixcan ports much more expensive.
Image Source: Dan Kline/Come Cruise With Me
Cruise lines reject immigration tax on Mexico
“The Florida and Caribbean Cruise Association (FCCA), representing Carnival, MSC, Royal Caribbean and Norwegian Cruises, has sent a letter to the President of Mexico, Claudia Sheinbaum, asking her to eliminate the new $42 tax as “Immigration duty to cruise passengers”, Reportur.com reported.
(All Reportur.com comments are translated from Spanish using Google Translate).
In the letter, the trade association warned that the new tax could affect cruise ship itineraries and put millions of dollars in investments in Mexico at risk.
“This proposed tax could also jeopardize cruise industry investments in the country, including billions in planned developments and other projects intended to help rebuild Acapulco and cultivate new Mexican tourist destinations,” the FCCA shared.
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The cruise industry expects to attract 10 million passengers on 3,300 cruise arrivals in 2025.
In the letter, the FCCA, a nonprofit trade organization comprised of 23 member cruise lines that operate nearly 200 vessels in Florida, the Caribbean and Latin American waters, shared that Mexico “would become the most expensive destination in comparison with other countries in the world. the region.”
The new immigration tax, if approved, is not expected to be collected until 2026.
Related: Royal Caribbean shares the secret of a cruise
An earlier version of this story included a quote from a cruise line executive, which Reportur.com excerpted from that person talking about a previous $5 tax.
The tax is expected to be voted on in Mexico's Congress on December 2.
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