“No changes for travellers”: Baja California Sur’s new tourist tax sparks confusion

This story was updated on Tuesday, July 8 at 10:01 a.m. EST

Confusion has emerged regarding a newly-introduced tourist tax reportedly implemented by the Mexican state of Baja California Sur, which is home to the popular vacation destination Los Cabos.

Last week, a press release was distributed by Travelkore, a Toronto-based technology platform that manages tourist tax payments, announcing that Baja California Sur will introduce a "mandatory" tourism levy, called “EMBRACE IT,” starting July 1, 2025.

According to the release, dated June 30, all international visitors staying more than 24 hours must now pay 470 Mexican pesos (or roughly $34.25 CAD) through Travelkore's platform. 

The new tax, which is being collected by a company called Tourist Tax México, “aims to generate funds to strengthen natural environmental conservation, community development, and local tourism infrastructure,” reads the release, noting that payments are accepted digitally at this link. 

This initiative is outlined in Article 129 Bis of the Finance Law of the State of Baja California Sur, as well as Section IV-VII of the General Rules, which specify the means and mechanisms to pay the tax fee.

The press release also includes a quote from Mtra. Bertha Montaño Cota, Minister of Finance and Administration, who says: "Our commitment is to provide an unforgettable tourism experience while protecting our ecosystems and supporting the well-being of local communities. EMBRACE IT is a key tool to achieve this.”

Last week, Travelkore distributed a letter from the Minister of Finance outlining the mandatory tax to travel partners and also shared it with media.

Several Canadian trade news outlets went ahead and published the information.

However, according to the Los Cabos Tourism Board, the new tax is more nuanced than it’s being portrayed.

In an emailed statement to PAX last Friday (July 4), the tourism board, via Siren Communications (which represents Los Cabos in Canada), offered a clarification about the EMBRACE IT tax, stating that “no regulatory framework or operational system has been formalized.”

“As of today, all operations in the destination remain as usual,” the tourism board wrote. “There are no changes for travellers.”

The Los Cabos Hotel Association issued a near-identical statement late Monday (July 7). clarifying the current status of the EMBRACE IT tax.

"As of today, no regulatory framework or operational system has been formalized for the implementation of the program. Therefore, all tourism operations in the destination remain as usual, and there are no changes for travellers visiting Los Cabos," the association said. 

Mixed messages

It appears that key stakeholders in Baja California Sur's tourism sector aren't yet aligned on the new program.

The situation represents yet another case of conflicting statements, mixed messaging, and uncertainty surrounding Mexico’s attempts at collecting tax from tourists.

Baja California Sur follows in the footsteps of Quintana Roo, another Mexican state where the implementation of a tourist tax has sparked considerable confusion.

Quintana Roo, where popular destinations like Cancun, Tulum, Playa del Carmen and Cozumel are located, passed a tourism tax in April 2021 at the height of the pandemic.

The state’s “VISITAX” aims to fund local infrastructure projects, like train and road networks, as well as airports, and protects local assets, such as beaches and Mayan sites.

While the purpose of the tax has been clear, the mechanics of it, from how and where to pay it, to its overall enforcement, hasn’t always been.

Initially, despite the state's efforts to collect the tax — including posting signs at Cancún International Airport and, at one point, having representatives stop tourists before security to prompt payment via QR code — many visitors simply ignored it, as proof of payment was rarely required.

Online chatter at the time didn’t help matters as both travellers and travel advisors – some, not all – took to social media to proclaim how “I didn’t have to pay it,” or “they’re not checking,” as if to suggest the tax was optional.

Meanwhile, several unauthorized websites began collecting the tax (in most cases, at higher prices), clouding the public’s understanding of it. Many of these fake websites still exist today.

According to Travelkore's website, the current tax for Quintana Roo costs $17.75 USD per person (or $23.45 CAD). 

Travelkore is named as the official payment app, but visitors, alternatively, can also pay via the government’s website here. 

Once travellers pay the tax, they receive a QR code via email. This code can then be presented to VISITAX agents stationed at all terminals within Cancun airport.

“VISITAX agents are now present in all terminals at Cancun airport, arrivals and departures, and in the secure areas airside. They are clearly recognizable and you must STOP if approached,” reads a notice on Travelkore’s website.

While paying the VISITAX is considered mandatory for tourists visiting Quintana Roo, there are no clear penalties or enforcement mechanisms, such as fines or detainment, in place for non-payment.

Last year, Travelkore warned that a “penalty fee” would be imposed on tourists who refused to pay the tax. The company’s website also says “digital tracking in now in force.”

Still, it isn’t 100 per cent clear if these enforcements have been fully implemented.

Hotel officials in the Mexican-Caribbean region have also expressed concern over the way VISITAX was being collected and promoted.

According to Reportur.com, the Mexican Caribbean Hotel Council, in fall 2023, submitted a request to Quintana Roo’s Governor to analyze the viability of the tax, noting inconsistencies in how the fee was being portrayed in advertisements, hotels and in CUN airport.

As a result, the narrative around VISITAX, and one’s duty to pay it, has spun in various directions.

Ultimately, the ethical choice is to pay Mexico’s tourist tax and contribute to the well-being of the destinations people travel to.

But Tim Scurry, CEO of Torkore Group of Companies—the parent company of Travelkore—also focuses on legal considerations, particularly in discussions with travel operators and advisors.

In July 2023, the head of taxation for Quintana Roo issued an official communication, making it compulsory for travel operators to “inform and collect” VISITAX.

The order was certified through the apostille process, which means it has an international standing in law.

In an interview with PAX in 2023, Scurry said Canadian travel advisors have a responsibility to know Mexico's state laws – and follow them.

“If travel advisors are advising their clients not to pay [the tax], they’re not in compliance with this order,” he said. “It’s an international law. I would not be playing with it.”

Still, the path to effective enforcement – and communicating policies that are consistent and easy to understand – remains uncertain.

If Quintana Roo’s struggles to enforce its tourist tax are any indication, Baja California Sur may be facing a rocky road ahead.

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