Mexico delays controversial cruise line tax for 6 months

In early December, Mexico passed a giant tax that will per chance impact cruisers, but now now not individuals who seek advice from the u . s . a . for longer stays via air or land.

That was a move widely opposed by the Florida Caribbean Cruise Association, a trade organization that represents tons of the industry. The FCCA saw the tax as punitive to cruise line passengers.

Now, the Mexican government has suspended implementation of the tax for six months. The tax will now take affect on July 1.

Once implemented, the new tax can be $forty two for every passenger who visits a Mexican port. The tax can be whether or now now not the passenger in actuality gets off the ship in that port.

The FCCA which is most often often often called the $forty two tax a “staggering more than 213% increase over the common cost of a Caribbean port. It also shared serious doubts that the Mexican ports may per chance remain competitive with an added tax that top..

Mexico adds time to negotiate port tax

“The concept that, as an instance, of a family of four visiting a Mexican cruise port and to spend an additional $168 in fees for some hours ashore, while tourists crossing the border by land and stay for seven days or less remain exempt from the tax might have a ways-ranging impacts,” the trade association shared.

The FCAA also shared that even a 15% reduction in tourism with offset the benefit of the tax.

“ the impact of this tax on Mexican tourist destinations can be disastrous,” shared the Mexican Association of Cruises. “ if implemented, we think to look a progressive drop in arrivals, on the way to seriously impact employment for taxi drivers, tour guides, artisans, waiters, craft store owners, pharmacies, and more.”

FCAA CEO Michele Page believes it’s important to handle the long-term issues at some point of the reprieve prior to the tax gets implemented.

“We thank the Mexican government for listening to our concerns and proposing a delay of the implementation of the tax fall mainly on Americans. Alternatively, the removal of the in transit tax exemption, which was provided to our industry over a decade ago for valid reasons that’s still apply as of late, was done without our prior input and after the legislation was passed. It be ironic that until this law was announced the industry was seeking to grow in Mexico, and now, the choice will occur.”