Business leaders in Baja California Sur say a federal cruise passenger tax introduced in 2025 has limited growth in the state’s cruise sector, even as overall visitor arrivals rose during the period. Industry representatives argue the fiscal burden on cruise lines discouraged stronger gains at ports in Cabo San Lucas and La Paz.
According to data from SEMAR (the Mexican Secretary of the Navy), cruise traffic to BCS ports did increase in early 2025. But the gains fell short of projections, and local business associations blame the new per-passenger tax for dampening momentum. The federal government originally proposed a $42 USD per-docking fee for cruise ships. After fierce pushback from the cruise industry, that figure was slashed to $5 USD per docking.
Multiple Taxes Stacking Up for Visitors
The federal cruise tax is separate from Baja California Sur’s own “Embrace It” tourism levy, which the state government introduced in mid-2025 and raised in January 2026. That fee applies to all international visitors aged 12 and older who stay more than 24 hours. It currently stands at 488 Mexican pesos (roughly $24 USD) per person and must be paid online before arrival. The state says it applies to travelers arriving by air, cruise ship, or car.
The Embrace It funds are earmarked for environmental conservation, tourism infrastructure, and cultural preservation across destinations including Los Cabos, La Paz, Loreto, and Todos Santos. Cruise passengers visiting BCS ports could face both the federal docking tax and the state visitor fee, creating a layered cost structure that business leaders say makes the region less competitive.
Industry Pushback Could Shape Policy
The cruise industry’s successful lobbying to reduce the original $42 federal tax to $5 shows the sector’s political leverage. Business leaders in BCS are now pressing for further revisions, arguing that the combined tax burden risks pushing cruise itineraries toward ports in the Caribbean or Central America. A federal review of the cruise tax rate is expected later in 2026, when the fee is set to double to $10 USD per docking starting in August.
For residents of port cities like Cabo San Lucas, cruise arrivals are a key driver of day-trip spending at restaurants, shops, and tour operators along the marina. Any reduction in ship calls or passenger counts has a direct effect on those businesses.
Despite the tax disputes, BCS tourism overall has continued to grow, fueled by expanded air routes and new hotel development. The debate centers not on whether the sector is shrinking, but on how much faster it could have expanded without the added costs.
This story was first reported by Zeta Tijuana.