From 1 August, the fee for cruise passengers visiting Mexican ports increased from $5 to $10 per person. The fee will jump again from 1 July 2027 to $15 per person, with the levy rising for a third time to $20 per person from 1 August 2028.

However, passengers on a cruise that feature several ports of call in other countries are not required to pay the tax twice if their ship re-enters Mexico as part of the same itinerary.

The fee, which is known as a "Non-Resident Duty" or "Tax Incentive", will be collected from passengers by cruise lines.

In 2024, the Florida-Caribbean Cruise Association (FCCA), which represents 23 major cruise operators such as Carnival Cruise Line, P&O Cruises and Royal Caribbean International, was heavily involved in negotiations with the Mexican government over the tax.

In 2024, the FCCA wrote to the country's government, outlining how the proposed $42 tax would be three times more expensive than the average Caribbean port.

The FCCA warned Mexico risked "pricing its ports out of the cruise market" with its proposed fee.

Chief Executive Michele Paige admitted the association had been “caught off guard” by the government’s “unilateral decision” to implement the new policy with only around a month’s notice.

The decision was subsequently delayed for six months. Officials reached a compromise on the tax. Rather than charging $42 per passenger, the new cruise tax rate of $10 per guest took effect on 1 August.

TTG has contacted the FCCA for comment.