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The Street
The Street
Daniel Kline

Forget Mexico: More key cruise ports add new taxes

It's hard for any country's politicians to raise taxes on their citizens. 

Most people don't want to pay higher taxes and won't be thrilled with any elected official who decides to raise them.

But most people also have no issues with taxes being levied on tourists. That tactic often is justified as necessary to handle the wear and tear on a popular tourist destination's infrastructure. 

Related: Royal Caribbean passengers angry over big casino change

Las Vegas, for example, used a tourist tax partly to help pay for improvements to roads and other infrastructure in order to build Allegiant Stadium. 

Adding the National Football League to an already crowded city did require road and other enhancements, but these taxes often don't go away once a specific project has been completed.

Some cruise destinations are using higher port fees as a way to limit tourism. Others see cruise passengers as suckers whom they can bleed dry because where else are the ships going to go anyway?

That's what's happening in Mexico, which has proposed a tax of $42 per person for each visit to a Mexican port (whether people get off or not). That money isn't going to improve the port or any facilities tourists use. Most of the funds are going to the military.

Now, Greece is proposing a tax cruise-line passengers to pay for repairs from theoretical future storms.

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Athens is a popular cruise destination.

Image source: Shutterstock

Greece looks to tax cruisers more heavily

Royal Caribbean, Celebrity Cruises, Norwegian Cruise Line, Virgin Voyages, various Carnival-owned brands and many other cruise lines make port calls in Greece. The Greek government appears set to make those visits more expensive.

On Dec. 4 Greece's parliament voted to approve a bill that would increase daily taxes for hotel guests, people staying in short-term rentals, and cruise passengers.

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The tax would be used to offset the impact of natural disasters on the country.

"Due to climate change, Greece is facing an increased number of extreme weather events, such as floods, droughts, and forest fires, which strain its public finances," Reuters reported. "Tourism is the main driver of its economy, which emerged from a debt crisis in 2018." 

The proposed increase for hotels and short-term rentals, which would kick in next year, would raise the current tax more than 500%, to 8 euros ($8.41) from 1.5 euros ($1.58). The tax would be in place during Greece's April-October tourism season.

ALSO READ: Top travel agents share how to get the best price on your cruise

During the offseason, the tax would quaduple to 2 euros from 0.5 euro.

Cruisers would pay a new 20-euro tax when visiting the popular islands of Santorini and Mykonos and a 5-euro levy when porting in other destinations.

Are you taking a cruise or thinking about taking one? Visit our Come Cruise With Me website to have all your questions answered.

 

  

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