Sheinbaum’s Govt Grants 6-Month $42 Cruise Fee Waiver

President Claudia Sheinbaum's government has responded to complaints about the $42 fee per cruise passenger, as outlined in this year's Federal Law of Rights. A decree has been issued to apply a 100% exemption to this tax.

The initial intention was to align the tax treatment of foreigners entering the country via air travel, who do pay the respective fees for immigration services. The cost of providing these services remains the same, regardless of how foreigners enter the country, according to the decree published in the Official Journal of the Federation.

However, the decree acknowledges that cruise ships transport a large number of foreign tourists entering the country for leisure. Given that cruise itineraries are often planned and sold in advance by international maritime passenger transport companies, it was deemed necessary to offer a tax benefit to these foreign visitors.

The implementation of the cruise tourist charge by Congress necessitated the development of mechanisms to manage the right and avoid operational difficulties due to the removal of the exemption for foreign tourists. As a supportive measure for the tourism sector, it was deemed beneficial to offer a tax incentive to foreign passengers entering the country by sea on cruises.

The incentive is equivalent to 100% of the fee related to the receipt, study of the application, and, if applicable, the issuance of the immigration document that certifies the visitor's stay status without permission to carry out paid activities.

This decree will only apply during the months of January to June, for the fiscal year 2025. The implementation of the $42 fee per passenger had sparked criticism within the sector, not just for its impact on tourism, but also because a portion of the tax revenue would be allocated to the Army rather than improving port facilities.

The Mexican Association of Shipping Agents expressed concerns last November that this measure would make Mexican tourist ports among the most expensive globally, severely affecting the country's competitiveness compared to Caribbean destinations.

Octavio de la Torre, president of Concanaco Servytur, emphasized that the tax posed a threat to the local economies of Mexican port communities such as Cozumel, Mahahual, Puerto Vallarta, Acapulco, Ensenada, Puerto Chiapas, Puerto Progreso, and Cabo San Lucas. In these areas, cruise tourism accounts for up to 90% of visitors.

Local communities, especially those whose livelihoods depend on the income generated by cruise passengers, such as merchants, tourist guides, restaurant owners, and artisans, expressed significant concerns. They would be most affected by the elimination of the Non-Immigrant Right (DNI) exemption, according to De la Torre.