Puerto Vallarta, Mexico – Travelers visiting Puerto Vallarta in 2025 may find themselves facing a series of new and increased fees, sparking industry apprehension and calls for greater transparency about how additional revenue will be used.
Local business representatives warn that these new charges—most notably a progressive increase in the Lodging Tax (ISH) from 3% to 5%—could place Puerto Vallarta at a competitive disadvantage. Hoteliers, who would be required to pass these costs on to guests, express concern over the timing and purpose of the proposed increases.
Lodging Tax Increase Moving Forward
The Jalisco State Congress is moving toward approving a gradual increase in the Lodging Tax, elevating it from 3% to 4% in 2025, and then to 5% by 2026. If approved, the changes could be ratified during the legislative session this Friday. Projections estimate that lodging tax revenues would grow to 574 million pesos next year, compared to 476 million pesos this year.
This increase comes as part of the newly endorsed 2025 State Income and Expenditure Budget, which also accounts for higher federal contributions. While the additional funds are intended to bolster the state’s fiscal capacity, local business leaders remain unconvinced that the revenue will translate into tangible benefits, such as improved infrastructure or more effective tourism promotion.
Industry Skeptical About Justification and Usage
Fernando Castro Rubio, president of the Association of Businessmen of Puerto Vallarta and Bahía de Banderas, questioned the necessity and origin of the proposed tax hike. He noted the lack of clarity regarding who requested the increase and how the funds will be allocated, calling into question the legitimacy of the measure.
Castro Rubio cited the example of neighboring Nayarit, which raised its Lodging Tax to 5% three years ago without a corresponding increase in tourism infrastructure improvements or marketing efforts. He argued that Puerto Vallarta might face similar challenges, risking its attractiveness to both domestic and international visitors.
The business leader plans to seek explanations from local officials, starting with Deputy Yussara Canales, in order to understand the rationale for the hike. He emphasized that raising taxes is not the only solution for increasing public resources, suggesting administrative savings as an alternative.
Additional Fees Loom for Visitors
Beyond the ISH increase, Puerto Vallarta’s tourists may also encounter a new $8 fee per adult ‘Foreigner tax’ on their hotel bills. This additional charge is designed to generate extra funds for the destination and will be applied alongside the increased lodging tax.
Cruise ship passengers are not immune to the escalating expenses. Starting next year, a new cruise passenger fee will add an estimated $40 per person to the cost of visiting Puerto Vallarta. Industry stakeholders worry that cruise operators and their guests may seek alternative ports if costs become too burdensome.
Balancing Fiscal Needs and Tourism Appeal
As Puerto Vallarta’s tourism sector emerges from a period of global uncertainty, local businesses are urging lawmakers to carefully weigh the long-term impacts of tax and fee increases. Although additional revenue may address fiscal goals, industry representatives warn that heightened costs without clear reinvestment strategies risk undercutting the city’s standing as a premier travel destination.
For now, Puerto Vallarta’s hotel operators, tour providers, and other stakeholders await the final decision of the Jalisco Congress. Whether the measures ultimately help or hinder the tourism industry in this renowned coastal city remains to be seen.
While tourists are asked to pay more to help the city’s financial deficit, the corruption of the local government and theft from city officials continue to happen with impunity.
Puerto Vallarta, Mexico – Travelers visiting Puerto Vallarta in 2025 may find themselves facing a series of new and increased fees, sparking industry apprehension and calls for greater transparency about how additional revenue will be used.
Local business representatives warn that these new charges—most notably a progressive increase in the Lodging Tax (ISH) from 3% to 5%—could place Puerto Vallarta at a competitive disadvantage. Hoteliers, who would be required to pass these costs on to guests, express concern over the timing and purpose of the proposed increases.
