Cruise goers heading to Mexico can now rejoice as the American country has caved and abandoned its controversial £31 ($41) -a-day tax per passenger. Fury erupted last year when Mexico passed a vote which could see anyone travelling on a cruise ship charged a fee to enter the country.

The proposal for the legislation said: “It is necessary to eliminate the exemption from immigration document payment for foreign passengers who enter Mexico aboard cruise ships.” The Mexican Association of Shipping Agents said the charge could make the cruises in the country "uncompetitively expensive". Cruise industry leaders felt they were blindsided by the plan and have been in constant communication with Mexican government officials to reach a middle ground that supports the tenth-most populous country's tourism industry while keeping it affordable for travelers.

Cruise industry leaders warned government officials that they could easily take business away from Mexico by adjusting schedules to swap Mexican ports of call with other destinations if the £31 tax was implemented as planned on July 1.

The Mexican government listened as even a slight job in cruise ship traffic could seriously harm Mexico’s tourism industry for local communities that rely heavily on holidaymakers.

The Mexican government has not completely dropped the planned cruise tax, but has significantly decreased it to a more manageable £3.75 ($5) per passenger, according to Riviera Maya News.

This fee will be implemented on July 1. However, before cruise goers get too excited the cruise tax is expected to double in 2026 and again in 2027 meaning it will increase to £7.50 ($10) for 2026 and £15 ($21) for 2027.

The new tax amounts are hoped to increase cruise tourism’s contribution to Mexico’s economic development. The Federation of Cruise Services and Related Activities (FSCA) and the Mexican government agreed on the new fees.

Cruise ship passengers in Mexico had previously been excluded from the immigration fee, as the visitors typically sleep aboard the vessels and may not disembark the ship.