Mexico's $42 cruise passenger tax, due to take effect July 1, is not a done deal, said Carnival Corp. CEO Josh Weinstein during the company's Q4 earnings call on Friday.
Earlier this month, Mexico's government postponed the tax's implementation from Jan. 1 to July 1 after receiving backlash from the cruise industry. Weinstein said he is not satisfied with just a delay. He also said Carnival Corp. has been in discussions with the government about the tax, and he expects those talks to continue into the new year.
"We want to have a good dialogue with the government and explain all the benefits that we bring to Mexico, which are significant," Weinstein said.
Weinstein's comments during the call suggested he believes the cruise industry has leverage over the Mexican government.
"It doesn't take much to tweak itineraries [to avoid Mexican ports]," he said.
Weinstein said no one in the cruise industry was consulted about the tax increase. Both chambers of Mexico's legislative branches voted to charge a $42 head tax for every cruise passenger visiting the country, with two-thirds of the money raised to fund the Mexican army.
"I have a lot of respect for [President Claudia Sheinbaum Pardo] and what she's doing, but she was misinformed, not informed, and no one was thinking through the ramifications," Weinstein said.
While visitors flying to Mexico have long paid the tax, cruise ship passengers have been exempt because they overnight on cruise ships. The Mexican government contends charging cruise passengers the tax would treat visitors equally whether they visit by air or sea.
The cruise industry has railed against the fee, with the Florida-Caribbean Cruise Association contending the tax would make cruising in Mexico 213% more expensive than the average Caribbean port of call.
Less than 5% of Carnival Corp's 2025 itineraries after July 1 are scheduled to call in Mexico, Weinstein said.