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The Mexican government has significantly cut its proposed cruise passenger tax which is due to take effect this summer.
The fee will be collected once per voyage by cruise lines and was originally set at $42 per passenger, but will now start at $5 from July.
The amount will gradually increase over the next few years, going up to $10 from August 2026 to June 2027, $15 from July 2027 to July 2028 and $21 in August 2028.
The proposed tax was initially expected to be implemented in January this year before being delayed for six months.
Popular ports in Mexico include Puerto Vallarta, Costa Maya, Mazatlan and Cozumel, with several cruise lines sailing the region, such as Royal Caribbean, Princess Cruises, Norwegian Cruise Line and Celebrity Cruises.
The Florida-Caribbean Cruise Association (FCCA) said in a statement: "On behalf of our member cruise lines – representing over 95% of cruise capacity in the Caribbean and Latin America – we thank the Federal Government of Mexico for working with us to reach an “in transit fee” agreement that safeguards cruise tourism to the country and aims to enhance the benefits for local communities whose livelihoods depend on it.
"The cruise industry is a success story for Mexico, contributing roughly $1 billion in direct spending to the economy in the past year alone.
"This agreement demonstrates what we can accomplish together to foster opportunities for shared growth and success through ongoing, open dialogue and partnership with Mexico officials."