The cruise industry has tried to be a good partner with destinations in the Caribbean, Mexico and the Bahamas, which ships visit regularly.
That relationship has included not fighting reasonable port taxes when profits are invested in port areas and helping communities that support cruise ships.
Royal Caribbean and Carnival have partnered with local governments to ensure new private destinations on Paradise Island and Nassau's Freeport support local communities.
They have worked carefully to join the communities they are convening and make efforts to consult with local leaders before taking major action.
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But the cruise industry, through the Florida Caribbean Cruise Association, has decided to reject a new port tax that the Mexican government wants to implement.
The association includes 23 member cruise lines that operate nearly 200 vessels in Florida, the Caribbean and Latin American waters.
The Mexican government approved a tax of $42 per person that would apply to everyone visiting the country on a cruise ship, whether the individual has gotten off the ship or not. A previous $35 tourist tax did not apply to cruise passengers.
The $42 tax will help fund military spending, as Mexico's military manages ports that serve cruise lines.
The cruise association has rejected the tax and Mexico has delayed its implementation until July 1.
And now the trade group, which represents Royal Caribbean, Carnival, MSC Cruises, Norwegian Cruise Line and others in the industry, is pushing for more.
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The $42 port tax would harm Mexico, says FCCA
It should be noted that the FCCA does not oppose all port taxes. He simply sees this as punitive and makes clear that the $42 per passenger figure would cause cruise lines to call at Meixcan ports less frequently.
“This is a staggering 213% more than the average cost in Caribbean ports, raising serious doubts about the competitiveness of Mexican destinations in the global cruise market,” the association argued.
The biggest problem is the difference between a visit to a cruise port and people visiting for a longer stay.
“The concept, for example, that a family of four visiting a Mexican cruise port would have to pay an additional $168 in fees for just a few hours on land, while tourists who cross the border by land and visit for seven days or less are exempt from these taxes, it will have far-reaching impacts,” the group said.
“The FCCA warns that imposing such a burden on cruise tourists with minimal time actually spent in Mexico will deter visitors, disrupt cruise ship itineraries, and create economic knock-on effects in communities that rely heavily on cruise tourism. “.
Now, after successfully lobbying to delay implementation of the tax, the FCCA wants to bring the Mexican government to the negotiating table.
Cruise association wants Mexico to negotiate
“We do not accept the $42 fare,” said Michele Paige, executive director of the cruise association. SeaTrade Cruise News.
“It said Carnival Corp. & plc's Josh Weinstein, Royal Caribbean Group's Jason Liberty, Norwegian Cruise Line Holdings' Harry Sommer and MSC Group's Pierfrancesco Vago, whose companies account for most of Mexico's cruise traffic, have indicated they are ready at any time to fly to Mexico City if they can meet 'the right people,'” the website reported.
The FCCA wants to meet with the Mexican government to share its objections and make clear that the tax would not have the planned impact if the cruise industry reduced its visits to Mexico.
Even a 15% reduction in cruise calls to Mexican ports could negate the intended economic benefits of the tax, according to the FCCA.
And while cruise lines have already sold 2025 and even 2026 cruises that call at Meixcan ports, cruise lines reserve the right to change ports.
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The Mexican Cruise Association sides with the FCCA.
“The impact of this tax on Mexican tourist destinations will be disastrous,” said the Mexican trade group. “If implemented, we expect to see a progressive drop in arrivals, which will significantly affect the employment of taxi drivers, tour guides, artisans, waiters, restaurateurs, craft store owners, pharmacies and more.
“(Less) revenue means fewer jobs and lower tax revenue for the government. Mexico will lose competitiveness and become one of the most expensive cruise destinations in the world.”
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