Puerto Vallarta, Mexico – Puerto Vallarta’s City Council’s proposal to impose a fee on foreign tourists visiting the municipality is under consideration by the Jalisco Congress. Gabriela Cárdenas, MC Deputy and President of the Finance Committee, stated that the initiative is viable and has garnered support from the tourism sector, which views it as a necessary measure.
The proposal, approved by the Vallarta government on November 15, 2024, under Mayor Luis Ernesto Munguía of the Green Party, seeks to include the collection of 1.25 Units of Measurement and Update (UMA), equivalent to 141.4 pesos (approximately USD 7.50), in the 2025 Municipal Income Law. The fee would be charged to foreign tourists for their use of services, goods, and public spaces. However, the measure requires the approval of the Jalisco state legislature to be implemented.
Deputy Cárdenas emphasized the positive reception of the proposal within the tourism sector, which recognizes the potential benefits of the fee. “The municipality has already approved this in its City Council. Although introducing or increasing taxes is always a subject of debate, the tourism sector has expressed its support, deeming it necessary and timely,” she stated.
While the proposal still requires a detailed review by the Finance Committee, Cárdenas expressed optimism about its prospects. “From a technical standpoint, we see it as viable and beneficial. However, it will be up to the Finance Committee to determine its final feasibility.”
Despite the support from some sectors, the proposed fee has faced criticism. Cruise ship passengers, a significant segment of Puerto Vallarta’s tourist demographic, have voiced their disapproval. Additionally, local Morena party deputies have expressed concerns over the potential negative impact on the destination’s appeal.
Critics argue that such a fee could deter foreign tourists, particularly as the region competes with other popular destinations. The timing of the proposal also raises questions, given the ongoing recovery of the tourism industry post-pandemic.
Deputy Cárdenas indicated that the Finance Committee plans to address the issue before the end of January 2025. “We will review the Income Law modifications for Puerto Vallarta alongside proposals from approximately 10 other municipalities seeking similar adjustments. This will allow us to make a comprehensive decision,” she noted.
The proposal’s success may also set a precedent for other municipalities in Jalisco. “Each municipality has the option to include new taxes in its Income Law proposals. However, we remain committed to analyzing the social and sectoral impacts of such measures to ensure balanced outcomes,” added Cárdenas.
If approved, the tourist fee would mark a significant shift in how Puerto Vallarta funds its public services and infrastructure. Proponents argue that the additional revenue could improve the city’s offerings and sustain its appeal as a premier tourist destination. Opponents, however, warn of potential backlash from international visitors and the risk of pricing the destination out of reach for budget-conscious travelers.
The Jalisco Congress’s decision in the coming weeks will determine whether Puerto Vallarta implements this controversial measure, setting a potential model for other tourist hubs across the state.
Puerto Vallarta, Mexico - Puerto Vallarta's City Council's proposal to impose a fee on foreign tourists visiting the municipality is under consideration by the Jalisco Congress. Gabriela Cárdenas, MC Deputy and President of the Finance Committee, stated that the initiative is viable and has garnered support from the tourism sector, which views it as a necessary measure.
