In 2025, Cabo San Lucas sets new marks for cruise ship visits
Cabo San Lucas, Mexico, is gearing up for a bountiful year of cruise ship visits, with an estimated 24 individual ships scheduled to dock in the picturesque port town. This influx of maritime giants is set to bring over 70,000 passengers to the region, contributing significantly to the local economy.
The cruise ship phenomenon in Cabo San Lucas dates back to the 1960s, with a steady growth in passenger numbers observed in recent years. In 2023, the average number of passengers per cruise ship visiting the destination was a staggering 3,117.
The economic impact of these visits is substantial, with an estimated one billion dollars annually generated by cruise ship visits helping to sustain local economies in port destinations in Mexico like Cabo San Lucas.
The US $42 cruise tax, passed by the national Senate, was initially met with resistance from the cruise industry. The high tax rate threatened to make visits to Mexico's ports 213% more expensive than those in the Caribbean. However, through negotiations between Mexican officials and the cruise industry, the tax was negotiated down to a manageable US $5 per person. This reduced rate applies for at least the short term, until the first half of 2026, after which it will incrementally increase over the next three years, reaching $21 in August 2028.
The reduced tax rate was primarily due to a combination of factors. Cruise lines, including major players like Royal Caribbean, threatened to pull ships from Mexico and reduce investments in Mexican cruise infrastructure if the high tax rate remained. The Florida-Caribbean Cruise Association (FCCA), which represents over 95% of cruise capacity in the region, engaged in discussions with Mexican officials to find a mutually beneficial agreement.
Mexican officials were keen to maintain the economic benefits of cruise tourism while addressing concerns about the contribution of cruise lines to local communities. As part of the agreement, cruise lines agreed to promote Mexican-made products and arts on their ships and at ports, increasing the benefits of cruise tourism for Mexican communities.
Several ships, including Carnival's Panorama, will be making more than a dozen visits to Cabo San Lucas this year. The Carnival Panorama, launched in 2019, is a major presence on the West Coast and was Carnival's first new ship to be permanently homeported in Long Beach, California, in more than two decades. The Panorama carries up to 4,008 passengers.
Notable additions to this year's lineup include Royal Caribbean's Ovation of the Seas, which launched in 2016 and will be homeported in Los Angeles for the first time in its history. The Ovation of the Seas, Royal Caribbean's biggest ever LA-based ship, will be making its first trips to Cabo San Lucas. The Ovation of the Seas will be redeployed in September.
Summer ports of call in Cabo San Lucas are more robust than usual, with about 20 ships per month expected compared to the usual five. Cunard's Queen Elizabeth will make a port call in Cabo San Lucas on Oct, 3, during its 18-day voyage from San Francisco to Miami.
With over 800,000 passengers expected by the end of 2025, cruise ship visits to Cabo San Lucas have been increasing in recent years and are pacing for another all-time high, with an astonishing 34% increase over the same period in 2024.
Sources:
- Cruise Industry News
- Seatrade Cruise News
- Cruise Critic
- Cruise Industry News
- The growth in cruise ship visits to Cabo San Lucas, Mexico, dates back to the 1960s and a steady increase in passenger numbers over recent years has been observed, with an average of 3,117 passengers per ship in 2023.
- The economic impact of these cruise ship visits is substantial, contributing around one billion dollars annually to the local economy, supporting port destinations like Cabo San Lucas in Mexico.
- In 2019, the Carnival Panorama, a major presence on the West Coast, was launched and became Carnival's first new ship to be permanently homeported in Long Beach, California in more than two decades, with a capacity of up to 4,008 passengers.
- The reduced cruise tax rate in Mexico, negotiated down from an initial US $42 to a manageable US $5 per person, was primarily due to discussions between Mexican officials and the cruise industry, as well as threats from cruise lines to pull ships from Mexico and reduce investments in local cruise infrastructure.
