Bahamas Set to Join Jamaica, Barbados, Mexico, Belize, US Virgin Islands, and Dominican Republic as Cruise Tax Crackdown Expands With New Levies on Private Islands Across the Caribbean

The Bahamas is set to join Jamaica, Barbados, Mexico, Belize, the US Virgin Islands, and the Dominican Republic in cracking down on cruise tourism with a sweeping set of new taxes and levies aimed specifically at private islands owned by cruise giants like Royal Caribbean, Carnival, and Disney—marking a regional shift toward reclaiming economic control over tourism profits. The move comes in response to growing concerns that cruise lines are raking in billions through exclusive island operations while local communities receive only a fraction of the benefit, prompting Caribbean nations to impose targeted taxes on imports, passenger services, water sports rentals, and port access to ensure a fairer share of revenue stays within national economies.

Bahamas Targets Private Island Profits

With cruise giants like Royal Caribbean, Carnival, Norwegian, Disney, and MSC operating luxury private islands in the Bahamas, the government is now moving to tax goods and services that previously escaped local oversight. Water sports rentals will be limited to Bahamian operators, work permits for cruise staff will incur new fees, and all imports to these islands will be subject to taxation.

The timing couldn’t be more critical. In 2024, the Bahamas welcomed 9.4 million cruise visitors, a 20.3% increase from the previous year. These visitors accounted for 83.4% of all tourist arrivals, yet Prime Minister Philip Davis stated that most of the revenue stays within the cruise companies. High-end experiences like $4,000-per-day cabana rentals are common, but the surrounding communities see little benefit.

The new tax framework is designed to shift that balance, ensuring cruise tourism supports national development, not just corporate profits.

Jamaica Expands Cruise Passenger Fees

Jamaica has been one of the region’s early adopters of cruise-specific tourism levies. Every cruise passenger is subject to a $2 fee, funneled into the Tourism Enhancement Fund, which supports infrastructure projects, community programs, and environmental initiatives across the island.

This fee might seem modest, but with several million cruise visitors annually, the cumulative impact is significant. Jamaica has long advocated for a tourism model that benefits its people, and these levies are part of a wider movement to diversify income streams beyond all-inclusive resorts and strengthen local involvement in tourism-related activities.

Barbados Increases Tourism and Cruise Taxes

Barbados has taken a multi-layered approach to cruise taxation. Alongside hotel levies and departure taxes, cruise passengers now contribute through updated port usage fees designed to maintain infrastructure and manage visitor flows.

The government of Barbados views these charges as essential for offsetting the wear-and-tear of mass tourism on local services. With cruise ships docking near Bridgetown almost daily during peak seasons, the revenue collected helps fund upgrades to cruise terminals, roadways, and sanitation systems, all while promoting more sustainable tourism practices.

Mexico Phases In New Cruise Tax Policy

Mexico made headlines when it proposed a $42-per-person cruise passenger tax, sparking resistance from cruise companies. Following negotiations, the tax was scaled back to $5 in the short term, with plans to gradually increase it over the coming years.

The move coincided with Royal Caribbean’s announcement to build a new private destination along Mexico’s Caribbean coastline, prompting authorities to ensure these private developments contribute directly to the national economy. By creating a phased taxation model, Mexico aims to attract cruise investment while still capturing long-term value for its coastal communities.

Belize Implements Targeted Tourism Levies

Belize has also joined the regional wave of cruise taxation, introducing a structure of fees to fund sustainability and local development. These include cruise passenger charges, park entry fees, and environmental levies—all collected to preserve the country’s fragile ecosystems and cultural heritage.

Belizean officials have emphasized that cruise tourism must evolve to align with the country’s long-term development goals. By introducing new taxation and reducing dependency on mass tourism, Belize is prioritizing eco-tourism and small business integration over large-scale cruise operations that bypass local vendors.

US Virgin Islands Boosts Port and Passenger Fees

The US Virgin Islands has imposed a combined $13 fee per cruise passenger, which includes a $6 head tax and a $7 port charge. These funds are used for terminal maintenance, environmental cleanup, and crowd control operations.

The government there has made it clear that infrastructure strain from heavy cruise traffic—especially in Charlotte Amalie—requires consistent reinvestment. With increased fees, the territory can better manage high visitor volumes and protect its heritage sites and marine resources while continuing to welcome cruise ships to its shores.

Dominican Republic Leverages Tourist Card Fee

Unlike other nations that impose fees directly at the port, the Dominican Republic includes a $10 tourist card fee in most airline tickets and cruise packages. This mandatory entry fee applies to nearly all foreign visitors, including cruise passengers arriving at major ports like Amber Cove and La Romana.

The revenue supports national tourism initiatives and public infrastructure, but officials are now looking to expand this system with more cruise-specific taxes. Talks are underway to introduce new port fees or activity levies to increase returns from private excursion operators who currently operate without much regulation.

The Bahamas is joining a growing Caribbean movement led by Jamaica, Barbados, Mexico, Belize, the US Virgin Islands, and the Dominican Republic to impose cruise taxes and private island levies in order to reclaim lost tourism revenue and ensure local communities benefit more directly from the industry.

A Regional Shift in the Cruise Industry Power Dynamic

What ties all these countries together is a growing consensus: Caribbean economies can no longer afford to be bystanders in their own tourism story. For years, cruise lines have operated vast networks of private islands, shore excursions, and onboard services—creating self-contained vacation ecosystems that minimize local spending.

But that era is rapidly changing. The Bahamas’ move to target private islands directly—combined with taxes already in place across the region—marks a turning point in the Caribbean’s relationship with the cruise industry. These countries are no longer just ports of call; they are asserting their right to share meaningfully in the profits made from their lands and waters.

For cruise passengers, the new fees may go unnoticed—a few extra dollars added to a ticket. But for local communities, they represent clean water systems, paved roads, jobs, and schools. And for the cruise industry, they represent a necessary recalibration—one that balances business success with the responsibility to give back.

As more Caribbean nations join this tax reform wave, the message is clear: private island luxury will no longer come tax-free.

Tags: bahamas, barbados, Belize, cruise news, cruise tax, Dominican Republic, jamaica, mexico, travel industry, Travel News, US Virgin Islands