The Puerto Vallarta City Council, led by Green Party Mayor Luis Ernesto Munguía, has proposed a new fee targeting foreign tourists. The measure aims to generate revenue for the maintenance and improvement of public spaces and municipal services, particularly those catering to tourism. If approved, the initiative will become part of the municipality’s Income Law for 2025.
Details of the Proposal
Under the proposal, foreign tourists visiting Puerto Vallarta will be charged a fee of 135.71 pesos per year for accessing public spaces. Initially, the Mayor suggested a higher charge equivalent to 2.5 Measurement and Update Units (UMA), amounting to 271.42 pesos. However, after review by the City Council Commissions, the fee was reduced to 1.25 UMA, or 135.71 pesos.
According to the City Council, the collected funds will be earmarked for the enhancement and maintenance of public spaces used primarily by tourists, such as beaches, parks, and promenades. Additionally, the revenue will contribute to improving municipal services that support the tourism industry.
Exemptions to the Fee
Certain groups will be exempt from the new fee, including:
- Minors under the age of 14.
- People with disabilities.
- Tourist guides and tour operators.
- Airline and cruise ship personnel.
- Foreign workers employed in the tourism sector.
The City Council is expected to vote on the proposal this Friday. If approved, it will be sent to the Jalisco state Congress for final authorization.
Proposed Lodging Tax on Hold
In addition to the public space fee, Mayor Munguía also proposed a lodging tax for all tourists, both domestic and international. The tax would apply to accommodations such as hotels, motels, timeshares, hostels, and vacation rentals, including those booked through digital platforms. The proposed amount was 75.99 pesos per night, equivalent to 70 percent of one UMA.
However, this lodging tax has faced resistance within the City Council and has not progressed through committee discussions. As a result, it is likely to be discarded.
Rationale and Implications
Mayor Munguía defended the proposed fees as necessary for sustaining Puerto Vallarta’s tourism infrastructure. “The purpose of this right will be for the maintenance and improvement of municipal public spaces mainly intended for tourism activities, as well as for the improvement of municipal public services provided by the Municipality, mainly in the tourism sector,” the proposal states.
The initiatives reflect broader trends in tourist destinations worldwide, where governments are seeking additional funding to mitigate the environmental and infrastructural impacts of tourism. However, critics argue that such measures could deter visitors, particularly those traveling on a budget.
Next Steps
Should the City Council approve the public space fee, it will move to the state Congress for authorization before being implemented in 2025. Meanwhile, discussions around the lodging tax may resurface if adjustments or compromises are made.
As Puerto Vallarta continues to grow as a global tourism hub, the introduction of fees like these underscores the city’s effort to balance economic benefits with sustainable development. However, how tourists and the local community respond to these measures remains to be seen.
The Puerto Vallarta City Council, led by Green Party Mayor Luis Ernesto Munguía, has proposed a new fee targeting foreign tourists. The measure aims to generate revenue for the maintenance and improvement of public spaces and municipal services, particularly those catering to tourism. If approved, the initiative will become part of the municipality's Income Law for 2025.
