Royal Caribbean Is Pulling Two Ships From The West Coast After Mexico's Cruise Tax Hike

Royal Caribbean International spent years rebuilding its West Coast presence, using Los Angeles as a jumping-off point for short escapes and longer Mexican Riviera cruises. Now, two ships slated to sail from California in 2027, Navigator of the Seas and Ovation of the Seas, are being redeployed as Royal Caribbean expands its presence in Asia and Australia. The changes have already resulted in canceled cruises for passengers who expected to sail from Los Angeles. The timing stands out for another reason, too. Mexico has just doubled a new charge on foreign cruise passengers. Another increase is also coming in 2027. Royal Caribbean didn't explicitly say the tax drove its decision. But the cruise industry previously warned Mexico that higher fees could eventually push ships elsewhere. TheTravel has reached out to Royal Caribbean for comment on this story. Related Cruisers with voyages departing from Los Angeles have some last-minute changes to their Royal Caribbean itineraries. Two Royal Caribbean Ships Are Leaving Their Planned West Coast Schedules Navigator of the Seas in port Credit: Royal Caribbean The changes are part of what Royal Caribbean has described as its biggest-ever Asia-Pacific deployment. Navigator of the Seas had been one of the defining ships of Royal Caribbean's return to Los Angeles, sailing everything from short trips to Ensenada to weeklong Mexican Riviera itineraries. But instead of returning to California as early as initially planned, the ship will remain in Singapore through October 2027, giving it at least a full year in Asia. Royal Caribbean plans primarily two- to five-night cruises from Singapore to destinations in Malaysia, Thailand, and Vietnam, along with a longer sailing between Tokyo and Singapore. That change wiped out at least one already-booked transpacific voyage intended to bring Navigator back to California in May 2027. Royal Caribbean told affected passengers that "scheduling, port agreements, and other operational considerations" required the ship to be redeployed. Guests were offered replacement sailings, waived change fees on qualifying options, and some onboard credit. Ovation of the Seas is seeing an even bigger change The Quantum Class ship began operating from Los Angeles in 2025 and had been expected to remain there into 2028. Instead, cruises beginning in November 2027 have been canceled so Ovation can move to Brisbane, Australia, where it will operate three- to eight-night itineraries. Royal Caribbean's Ovation of the Seas awaiting passenger embarkation Credit: Shutterstock That means two ships Royal Caribbean had positioned for West Coast service are being redirected into its expanding Asia-Pacific operation. The move also comes as cruising to the region's most important international destination is getting to be more expensive. Mexico's New Cruise Fee Just Doubled And Will Rise Again In 2027 A Royal Caribbean cruise from Los Angeles can technically head north along the Pacific coast or visit Catalina Island without relying heavily on Mexico. But Mexico has historically been central to the Southern California cruise market. Royal Caribbean has offered itineraries from Los Angeles to Ensenada, Cabo San Lucas, Mazatlán, and Puerto Vallarta, ranging from quick weekend-style sailings to full Mexican Riviera cruises. However, foreign cruise passengers visiting those ports are now paying a higher federal charge. Mexico's Non-Resident Duty increased from $5 to $10 per passenger on August 1, 2026. It applies to foreign travelers arriving aboard cruise ships, whether or not they actually leave the vessel while it is in port. And the price will continue to go up through 2028. Sailing Date Mexico Cruise Passenger Fee July 1, 2025 – July 31, 2026 $5 per passenger August 1, 2026 – June 30, 2027 $10 per passenger July 1, 2027 – July 31, 2028 $15 per passenger August 1, 2028 – September 30, 2030 $21 per passenger Mexico's government established that phased structure after a much more controversial proposal threatened to impose a roughly $42 charge per passenger. Cruise lines like Royal Caribbean collect Mexico's Non-Resident tax as part of the taxes and fees associated with eligible cruises. For one traveler, the current increase is relatively small. But for a family of four, the charge has gone from $20 to $40. By August 2028, the same family would pay $84 additional when cruising to Mexico. Cruise Lines Previously Warned Mexico It Could Lose Ships Royal Caribbean Rhapsody of the Seas Cruise ship The Cruise destination Costa Maya Mexico America is a popular stop on the Western Caribbean cruise ship tour and affords shopping. Credit: via Shutterstock The Florida-Caribbean Cruise Association (FCCA) warned in November 2024 that the proposed $42 fee could make Mexican ports much less competitive with other cruise destinations. The group warned that cruise lines were already anticipating weaker demand and that the tax could lead to itinerary changes and fewer ship calls in Mexico. A letter sent to Mexican President Claudia Sheinbaum was backed by major cruise executives, including Royal Caribbean International President and CEO Michael Bayley. The FCCA later warned explicitly that cruise lines could shift itineraries away from Mexico toward less expensive destinations or other higher-demand regions of the world. "If this measure is implemented, it would make Mexican ports of call among the most expensive in the world, severely affecting their competitiveness with other Caribbean destinations," the association said in a statement. Mexico ultimately backed away from imposing the full charge immediately. Instead, the government negotiated the gradual schedule that began at $5 and eventually reaches $21. It's important to note that Royal Caribbean's latest deployment decision hasn't been explicitly linked to Mexico's cruise tax increase. The company instead points to scheduling, port agreements, operational considerations, and an attempt to capitalize on growing demand in Asia-Pacific. However, the timing is hard to ignore. West Coast Royal Caribbean Cruising Isn't Disappearing Aerial Photo of the Navigator of the Seas Credit: Royal Caribbean Press Center For California cruisers, this doesn't mean Royal Caribbean is abandoning Los Angeles entirely. Navigator of the Seas may return to California after its extended Singapore deployment rather than permanently leaving the market. Royal Caribbean is also providing alternatives to people displaced by the current changes. Passengers booked on Ovation of the Seas for November 22, 2027, for example, were offered the option of moving to a Navigator of the Seas sailing from Los Angeles on November 29. Royal Caribbean said it would waive non-refundable deposit change fees for that option, although travelers could still be responsible for differences in fares, taxes, fees, gratuities, and other charges. Guests who don't want a replacement can also receive refunds under the options offered for the canceled sailings. What is changing is how much capacity Royal Caribbean is willing to devote to the region over the next few seasons. Mexico's cruise tax also makes checking the final fare more important for passengers. Royal Caribbean includes the Non-Resident Duty within the taxes and fees on newer bookings, so passengers won't have to hand over tax at the pier. The cost is built into the overall cruise price. Cruise lines warned Mexico that making its ports more expensive could eventually encourage ships to go somewhere else. Less than two years later, two ships that had been planned for Los Angeles are spending more time across the Pacific instead.