Mexico’s Chamber of Deputies has approved a bill to impose a $42 per passenger head tax on cruise visitors, removing an exemption that previously applied to short-term cruise stops. If the Senate and President Claudia Sheinbaum approve the bill, the tax would take effect in 2026. Up to two-thirds of the revenue would be allocated to the army, which has overseen ports since 2020 to combat corruption and illegal trade. Some Mexican states already charge a $5 tax, potentially raising the total to $47 per passenger.

The cruise industry, represented by groups like the Florida and Caribbean Cruise Association (FCCA), warns that the tax could harm Mexico’s economy by deterring cruise lines and jeopardizing planned investments, such as Royal Caribbean’s new attractions in Costa Maya and Cozumel. Cruise lines have a history of avoiding ports with high fees, as seen in Alaska’s past tax efforts, which were later rescinded after a decline in cruise traffic.

Mexico is a crucial destination for the cruise industry, with over 10 million passengers expected in 2025 and key ports like Cozumel and Costa Maya handling millions annually. Opponents argue the tax risks making Mexico one of the most expensive destinations globally, potentially reducing its competitiveness. The Senate will debate the bill soon, and President Sheinbaum retains the option to veto it.