Caribbean Tourism Group Challenges US Port Fees, What About Cruises?
The US might soon be charging up to $1.5 million each time a Chinese-built or flagged ship docks at its ports, and the Caribbean Hotel and Tourism Association (CHTA) isn’t too happy about it.
On April 7, 2025, the CHTA called on the administration to consider making some exceptions, warning that the policy has “unintended consequences.”
Sanovnik Destang, president of CHTA, noted that one-third of tourism-related businesses in the Caribbean reported a net loss in 2024, and that the new US fees and tariffs could really knock island nations for a loop.
“The region was beginning to see light at the end of the tunnel with many tourism-related businesses recovering from the tremendous impact the pandemic had on travel and tourism,” he said.
“Even as our industry has rebounded, we remain highly vulnerable to the high cost of operations – particularly food and beverages – driven largely by five years of inflation,” he continued.
The association is calling for 26 Caribbean nations, as well as Puerto Rico and the US Virgin Islands, to be exempt from the charges, and highlights the area’s contribution to US imports.
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According to the CHTA, cruise visitors are “estimated to contribute $23 – directly and indirectly – toward incremental US imports.” Additionally, overnight stays from guests staying in the Caribbean contributes $944.
In total, more than $6.2 billion in US exports can be attributed to Caribbean tourism, and for that, CHTA is asking for the exemption.
“Given the clear mutual advantages to both the US and the Caribbean of a vibrant Caribbean hospitality and tourism industry,” Destang began his plea, “we are hopeful that our recommendations are considered and adopted for our mutual benefit.”
He said the request is “in the spirit of mutual collaboration, longstanding benefits from trade and tourism, and our shared commitment to free enterprise and democracy.”
US Proposes Hefty Fees
The US’s proposal to roll out some new rules, announced in late March 2025, will slap fees on ships run by Chinese companies or made in China when they dock at US ports, including those in Puerto Rico and the US Virgin Islands, US territories located in the Caribbean.
The administration is looking to charge up to $1 million for each port stop for Chinese vessel operators and $1.5 million for each Chinese-built ship.
The goal? To dial down China’s big influence in shipping and give a boost to US maritime operations.
Even though cruise lines sailing in the Caribbean, such as Royal Caribbean and Norwegian Cruise Line, don’t operate out of China or use Chinese-made ships, this could still make things pricier for the Caribbean islands, which receive goods via Chinese cargo ships that sail to the US.
With the new fees, the cost of getting goods to the islands that support tourism, such as food, might go up, and local businesses will have to foot the bill.
This, in turn, would likely result in hikes in prices on things like hotel stays and tourist attractions, and affect cruise ships and their passengers.
The CHTA is worried this could make the Caribbean a less appealing destination compared to other places that aren’t hit by these fees, as well as become so expensive for businesses that they will be forced to close.
Last year, in 2024, the Caribbean saw a record-breaking 35 million passengers, and this year, the Cruise Line International Association (CLIA) says that more than 37 million cruise guests are anticipated.
Caribbean Tourism Group Challenges US Port Fees, What About Cruises?