| Mexico delays fee

MEXICO has delayed the implementation of its US$42 cruise fee for six months, until 01 Jul (CW 03 Dec).

The Florida-Caribbean Cruise Association (FCCA), leading the sector in its rally against the fee, said more comprehensive measures are required to address broader concerns about what it called the tax’s “devastating impact on cruise tourism, Mexico’s economy and the livelihoods of its coastal communities”.

The fee is 213% more than the average cost at Caribbean ports, the FCCA told the media, which raises “serious questions about the competitiveness of Mexican destinations in the global cruise market”.

The FCCA said even a modest 15% reduction in cruise calls to Mexican ports could negate the intended economic benefits of the tax.

“The removal of the in-transit tax exemption – which was provided to our industry over a decade ago for valid reasons that still apply today – was done without our prior input and after the legislation was passed,” Chief Executive Officer Michele Paige said.

“It is ironic that until this law was abruptly announced the industry was looking to grow business in Mexico, and now the opposite will occur.”