Puerto Vallarta, Mexico — The Puerto Vallarta City Council approved a new tax targeting international tourists on Friday, November 15, sparking concerns within the local tourism industry about potential negative impacts on the region’s appeal as a premier travel destination.
The decision, made during an ordinary session chaired by Mayor Luis Munguía, saw the majority of council members back the initiative to impose a “voluntary” tax on foreign visitors arriving by land, air, or sea. This tax, to be collected through lodging services, is slated to be included in the municipal Income Law for the Fiscal Year 2025 and will now be forwarded to the Jalisco State Congress for final approval or rejection.
The proposal garnered support from eight councillors representing the Green Party, three from Morena, and two from Movimiento Ciudadano. However, the measure faced opposition with three councillors abstaining and one voting against it.
Independent Councillor Melissa Madero, who serves as president of the Commission for Tourist Services and Visitor Care, voiced strong objections to the new tax. She emphasized that the tourism sector is already burdened with multiple taxes, including lodging fees, VAT, airport and port charges, and immigration fees. “Tourists already pay a series of taxes, and this new charge could affect the perception of the destination and discourage the arrival of visitors,” Madero stated.
Madero also highlighted the absence of comprehensive studies evaluating the economic impact of the proposed tax. She raised concerns about the unclear collection mechanisms and the transparency of resource management related to the new revenue stream. “We must focus on the city’s tourism competitiveness, not on new tax burdens that could harm local tour operators,” she urged.
The Commission for Tourist Services and Visitor Care has officially rejected the measure, warning that it could undermine Puerto Vallarta’s competitiveness in the global tourism market. The councilor called for a reconsideration of the tax proposal, advocating instead for strategies that would enhance the city’s attractiveness to visitors without imposing additional financial burdens.
As the proposal moves to the State Congress, stakeholders in Puerto Vallarta’s tourism industry are closely monitoring the situation, fearing that the new tax could deter tourists and negatively impact local businesses dependent on tourism revenue.
Mayor Luis Munguía has yet to comment on the ongoing debates, but the council’s decision marks a significant step in the municipality’s efforts to adjust its fiscal policies for the upcoming fiscal year.
