Mexican Congress Debates $42 Head Tax on Cruise Passengers

 

Mexico’s Chamber of Deputies last week approved a bill that would remove an exemption for cruise passengers and begin to impose a hefty head tax. The cruise industry and trade associations are calling on the Mexican senate and president to stop the tax which they contend would have a detrimental impact on the country’s economy and investment in the development of the tourism industry.

Under the bill approved by the lower house and sent to the Senate for debate, the Mexican central government would impose a head tax equal to $42 per passenger on all cruise ships calling at Mexican ports. Historically the tax has only been applied to hotel visitors staying for a week and waved for cruises that stop for just a few hours.

Mexico’s ports have been under the authority of the army since 2020 as part of an effort by former President Andres Manuel Lopez Obrador and an attempt to crack down on corruption and the illegal trade from the ports. The bill approved by the lower chamber of the government plans to devote up to two-thirds of the revenue from the head tax to the army. In addition, some Mexican states are already charging a $5 tax for passengers raising the potential of a total tax of $47 per passenger.

The cruise industry has a history of discriminating against ports that it believes are imposing excessive fees. They have offered to work with destinations that feel they are being overwhelmed by the growth in the number of passengers but also regularly reposition ships and change ports to avoid high taxes. Alaska almost two decades ago attempted a heft tax and the cruise ships shifted away from the ports. After Alaska rescinded the tax, the cruise industry has worked with the destinations, such as the new voluntary agreement to limit the number of daily visitors to Alaska’s capital Juneau.

Mexico has emerged as one of the two core destinations for much of the cruise industry operating from Florida and along the Gulf Coast, which offers either cruises to the Eastern Caribbean or west to Mexico. The Florida and Caribbean Cruise Association (FCCA) highlights that in 2025, over 3,300 cruise ship calls are scheduled for Mexican ports with a likely 10 million passengers. Cozumel alone received 4.2 million cruise passengers last year and the Costa Maya port developed on the Yucatán Peninsula had over 2.2 million passengers.

The FCCA emphasized that the tax could jeopardize investments being made by the cruise lines and efforts to support the development of Mexican ports and the tourism industry. Royal Caribbean International, for example, announced in October plans for a new water park attraction called Perfect Day Mexico, which would open in 2027 on the Caribbean coast in Mahahual near the Costa Maya cruise port. In addition, the line is also developing a private beach club in Cozumel, Mexico, due to open in 2026.

Mexico would be following the lead of other destinations including the Greek islands which introduced plans for new destination taxes to deal with overtourism. Greece announced fees to especially address the crowding of Mykonos and Santorini during peak season.

The FCCA issued a public statement calling on Mexico to eliminate the new tax which is currently proposed to become effective in 2026. They said cruise lines might otherwise be forced to change itineraries. 

The Mexican Association of Shipping Agents also called for the president to stop the tax. They warned it would make Mexico among the most expensive destinations in the world and severely impact the country’s competitiveness. 

The Senate is expected to take up the bill as early as this week. The president of Mexico, Claudia Sheinbaum, could still veto the bill.

 

Top photo Wikimedia Commons - Whiskey5jda - CC BY-SA 4.0