Cruise Ship Lines Unhappy with New Tax

Cabo San Lucas, Mexico - November 7, 2022 - Carnival Cruise ship on the bay Cabo San Lucas, Mexico - November 7, 2022 - Carnival Cruise ship on the bay
Cabo San Lucas, Mexico - November 7, 2022 - Carnival Cruise ship on the bay

It was approved January 2nd

As we previously reported, the Mexican government approved a new tax of $42 per cruise ship passenger arriving at Mexican ports, starting July 1, 2025, with the goal of strengthening immigration control and increasing revenue. Claudia Sheinbaum has argued that it is not a new tax, but rather an update to an existing charge.

Carnival and Norwegian are expressing their discontent with Claudia Sheinbaum’s administration over the $42 maritime duty tax (DM) per cruise passenger, which is expected to be implemented starting in July, as they would be forced to cancel cruise frequencies and even abandon trips to Mexican destinations.

Josh Weinstein, CEO of Carnival, stated in a letter to Federal Tourism Secretary Josefina Rodríguez that this tax raises costs for passengers who already pay to visit Mexico; consequently, Mexican ports could become uncompetitive. He also mentioned that this new tax is not included in the rate because the Revenue Law was passed in December, and they had already sold over 80% of reservations for 2025, with bookings for 2026 beginning.

For his part, Harry Sommer, CEO of Norwegian Cruise, indicated in his letter to Rodríguez that they will change their itineraries and abandon their planned expansion to Mexico if the tax is implemented. Recently, Princess announced it would eliminate eighteen sailings to Mexico between 2026 and 2027 due to the new tax. The Majestic ship will reduce thirty-three arrivals in Cozumel and Mahahual.

Michele Paige, executive director of the Florida-Caribbean Cruise Association (FCCA), recently stated that they trust the Sheinbaum administration to abandon the $42 cruise tax starting July 1.

The Mexican government has indicated that it will seek dialogue with shipping companies to address their concerns.

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