Cruise industry raises alarm over Mexico’s proposed $42 passenger fee

   November 30, 2024 ,   Cruise Industry

Mexico’s proposed immigration levy on cruise passengers has stirred concerns within the maritime and cruise industry following a recent vote by the country’s lower house of Congress. The budget measure introduces a US$42 fee for each passenger aboard cruise ships docking in Mexico, a departure from the longstanding exemption for cruise travelers.

Under the legislation, two-thirds of the revenue generated would be allocated to the Mexican army, with no direct provisions for reinvestment in port facilities or cruise-related infrastructure. This allocation has drawn criticism from stakeholders who argue it undermines the maritime sector’s competitiveness and fails to address the needs of Mexico’s ports.

The Mexican Association of Shipping Agents has expressed strong opposition, warning that the new charges could make Mexico an unattractive destination for cruise lines, potentially driving business to other regions. Historically, cruise passengers have been exempt from such fees, as they remain aboard their vessels for overnight stays and do not utilize local immigration services extensively. According to the proposed law, the fee would apply universally, even to those who do not disembark during port calls.

Cozumel, a critical hub for the global cruise industry and one of the world’s busiest ports of call, hosts approximately four million cruise passengers annually. Industry representatives fear the new fee could disrupt its standing as a premier cruise destination.

The proposed legislation cites the need to remove the exemption to ensure equitable payment of immigration fees for all foreign visitors. However, critics suggest the move is primarily a revenue-raising measure, as the ruling Morena party seeks to fund significant infrastructure projects, including railways and refineries, many of which are managed by the army.

This development occurs against a backdrop of growing global scrutiny of cruise tourism due to concerns about over-tourism and environmental impacts. While such movements have prompted regulation in other destinations, Mexico’s reliance on cruise tourism - particularly in the Caribbean - complicates the situation. The new fee, if enacted, could reshape Mexico’s cruise tourism landscape and its economic relationship with the industry.