New Cruise Taxes: Greece and Mexico Set Sail for Change!
The waves of change are crashing into two of the hottest cruise ship destinations as they gear up for significant tax hikes on passengers, set to roll out in 2025. Cruise industry insiders are sounding the alarm, expressing their concerns over a lack of collaboration and dialogue from the governments involved. They’re urging a united front to tackle these issues while safeguarding the tourism sector that so many communities depend on.
Greece is leading the charge with its Prime Minister unveiling new taxes specifically targeting cruise passengers hitting the iconic islands of Mykonos and Santorini. These idyllic spots are among the crown jewels of the Greek Islands, but they’re feeling the strain as they grapple with a staggering influx of cruise visitors during peak season. In 2023 alone, Santorini welcomed approximately 1.3 million cruise travelers, while Mykonos wasn’t far behind with nearly 1.2 million. Just imagine—during one bustling summer day, Santorini recorded a jaw-dropping 17,000 tourists, with over 11,000 arriving by cruise ship alone!
Tension was palpable in the Greek Parliament as lawmakers debated these sweeping tax proposals, but ultimately, the bills were passed. Starting in peak season, travelers will face a €20 fee per passenger on the bustling islands of Mykonos and Santorini, while smaller islands will see a €5 charge. To further boost its coffers, Greece is also hiking taxes on short-term rentals and hotel stays, aiming to garner an impressive €400 million in new revenue. The government has committed to using a portion of this tax windfall to improve port facilities and support local initiatives addressing tourism and climate change challenges.
Meanwhile, Mexico is not sitting idly by. On December 4, its Senate swiftly approved a new tax that had already sailed through the lower house of Congress. Set to launch on January 1, this new fee will cost cruise passengers $42 on top of an existing $5 tax already applied in certain states. Critics warn this could position Mexico as one of the priciest destinations in the Caribbean. Until now, cruise passengers had been exempt from the tourist taxes that typically applied to longer hotel stays, but this is set to change alongside an increase in hotel taxes.
Mexican President Claudia Sheinbaum defended the tax, framing it as a necessary adjustment to keep pace with inflation and rising operational costs.
Michele Paige, CEO of the Florida-Caribbean Cruise Association, chimed in, emphasizing that “joint efforts between the government and the cruise industry are essential to creating sustainable growth that benefits all parties.” However, she expressed frustration over the lack of notice, pointing out that many travelers have already booked their winter 2025 getaways. She highlighted that over 10 million cruise passengers are expected to visit Mexico this season alone.
“We are hopeful we can work together to find solutions that preserve Mexico’s vital role in the cruise market while ensuring economic stability for the communities that depend on it,” Paige added.
In a bid to address the rising tide of cruise visitors and the resulting complaints of overtourism, Sheinbaum announced that her government would begin consultations with affected agencies. She reassured citizens that changes would be implemented gradually.
These tax hikes come as destinations from Maine to Florida and Alaska grapple with surging cruise passenger numbers. Many ports have already started imposing daily limits on incoming passengers and vessel sizes. Cities like Amsterdam and Barcelona are exploring options to relocate cruise ships away from their bustling centers, while Venice has taken drastic measures to shift cruise operations to nearby locations—much to the relief of environmental advocates and preservationists.
