The cruise industry has tried to be a good partner with destinations in the Caribbean, Mexico and the Bahamas, which ships visit regularly.
That relationship has included not fighting reasonable port taxes where the proceeds are invested in port areas, and helping the communities that support cruises.
Royal Caribbean and Carnival have partnered with local governments to ensure that new private destinations in Nassau's Paradise Island and Freeport support the local communities.
They have worked carefully to add to the communities they are calling on and they make efforts to co+nsult with local leaders before making big moves.
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But the cruise industry, through the Florida Caribbean Cruise Association, has decided to push back on a new port tax the Mexican government wants to implement.
The association includes 23 member cruise lines operating nearly 200 vessels in Floridian, Caribbean and Latin American waters.
Mexico's government has approved a $42-a-person tax that would apply to everyone visiting the country on a cruise ship, whether an individual got off the ship or not. A previous tourist tax of $35 did not apply to cruise-ship passengers.
The $42 tax will help fund military expenses since Mexico's military manages the ports that service cruise lines.
The cruise association has pushed back on the tax, and Mexico has delayed implementing it until July 1.
And now the trade group, which represents Royal Caribbean, Carnival, MSC Cruises, Norwegian Cruise Line and others in the industry, is pushing for more.
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The $42 port tax would hurt Mexico, FCCA says
The FCCA, it should be noted, doesn't oppose all port taxes. It just sees this one as punitive and makes clear that the $42-per-passenger number would cause cruise lines to call on Meixcan ports less often.
"This is a staggering 213% more than the average cost at Caribbean ports, raising serious questions about the competitiveness of Mexican destinations in the global cruise market," the association argued.
The biggest issue is the difference between a cruise-port visit and people visiting for a longer stay.
"The concept, for example, of a family of four visiting a Mexican cruise port having to pay an additional $168 in fees for just a few hours ashore, while tourists crossing the border by land who visit for seven days or less remain exempt from this tax, will have far-reaching impacts," the group said.
"FCCA warns that placing such a burden on cruise tourists with minimal time actually spent in Mexico will deter visitors, alter cruise itineraries, and create economic ripple effects in communities that heavily rely on cruise tourism."
Now, after successfully pressing to delay implementation of the tax, the FCCA wants to bring the Mexican government to the negotiating table.
Cruise association wants Mexico to negotiate
"We do not accept the $42 fee,' Michele Paige, the cruise association's chief executive told SeaTrade Cruise News.
"She said Carnival Corp. & plc's Josh Weinstein, Royal Caribbean Group's Jason Liberty, Norwegian Cruise Line Holdings' Harry Sommer and MSC Group's Pierfrancesco Vago — whose companies represent the bulk of Mexico's cruise traffic — have indicated they're ready at a moment's notice to fly to Mexico City if they can meet with 'the right people,'" the website reported.
The FCCA wants to meet with the Mexican government to share its objections and make clear that the tax would not have the planned impact if the cruise industry reduced its visits to Mexico.
Even a 15% reduction in cruise-ship calls to Mexican ports could negate the intended economic benefits of the tax, according to the FCCA.
And while cruise lines have already sold 2025 and even 2026 cruises that call on Meixcan ports, cruise lines reserve the right to change ports.
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The Mexican Association of Cruises sides with the FCCA.
“The impact of this tax on Mexican tourist destinations will be disastrous," the Mexican trade group asserted. "If implemented, we expect to see a progressive drop in arrivals, which will significantly affect employment for taxi drivers, tour guides, artisans, waiters, restaurateurs, craft store owners, pharmacies, and more.
"[Less] income means fewer jobs and lower tax revenues for the government. Mexico will lose its competitiveness, becoming one of the most expensive cruise destinations in the world.”
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