BajaNomad - State of BCS plans to implement a new tourist tax, $350 Pesos.

State of BCS plans to implement a new tourist tax, $350 Pesos.

Howard - 1-25-2017 at 10:22 AM

If this is successful, what's next?

http://mexiconewsdaily.com/news/foreign-tourists-will-pay-ta...

[Edited on 1-25-2017 by Howard]

[Edited on 1-25-2017 by BajaNomad]

Lee - 1-25-2017 at 10:31 AM

Quote: Originally posted by Howard

If this is successful, what's next?

http://mexiconewsdaily.com/news/foreign-tourists-will-pay-ta...

[Edited on 1-25-2017 by Howard]

The article explains some logic to the fees. MX is a poor country. $16 for more than one day is not a bad thing. Tourists will spend the money or stay home. Totally worth it in my opinion.

I've wondered about the ''slums'' in Cabo and saw some recently. All things being relative, this wasn't a slum like other parts of the world (Rio).

Took the Cabo exit from the airport road and the road goes through the slum area. Didn't see any cars, lots of shacks and dirt unlike any other area of Cabo I've seen before.

Be happy you can visit free for a day.

elgatoloco - 1-25-2017 at 10:36 AM

There is a disconnect in Los Cabos. IMHO. Its considered by some to be the most expensive place, parts of it anyways, in all of Mexico and that is probably correct. Meanwhile the 'help' lives in abject poverty. That and the fact that gringos are seen as walking ATM's because we are all millionaires after all means that the politicos can use that to justify a tax on ALL of Baja. I'm guessing it does not pass but one never knows.

I read somewhere recently that George Clooney and his buddy sold their compound in the area for $100 million US.

State of BCS plans to implement a new tourist tax, $350 Pesos.

Udo - 1-25-2017 at 11:00 AM

Foreign tourists will pay tax to stay in Baja
Visitors from abroad will pay 350 pesos to spend more than a day in Baja California Sur

Mexico News Daily | Tuesday, January 24, 2017
The governor of Baja California Sur intends to enact a controversial new 350-peso (US $16) tax on tourists coming from abroad and staying for more than one day.

Governor Carlos Mendoza’s reasoning is that the state has to find additional means to increase its income during times of crisis.

He expects to collect up to 525 million pesos (US $24.5 million) a year with the measure.

To justify it, Mendoza points to the poor quality of life for many people in municipalities such as Los Cabos, a situation that cannot be compared with the economic growth in tourist areas.

“We have neighborhoods that I call “Cardboard-land” in the Los Cabos area. Cardboard houses, no sewage, no running water, that’s the reality for those people living there,” said a local Deputy from the National Action Party, which is that of the governor.

“That is so not because things aren’t done, it’s simply that the budget falls very short with respect to the zone’s growth,” said Alejandro Blanco.

Blanco is a member of the Association of Hoteliers in the state and owner of the iconic Hotel California in Todos Santos.

While he acknowledged that the state must find additional sources of income, the legislator abstained from voting on Mendoza’s proposal because the governor didn’t consult with the state’s hotels before introducing the new tax.

A group of over 70 hoteliers from Los Cabos have obtained legal orders, or are in the process of doing so, as a means to spare them from having to collect the tax.

Hoteliers have accepted that the state must find new sources of income but “we do not believe this is the best way to do it,” said the hotels association president.

“Guests will not only feel that we’re trying to squeeze the last cent out of them, but they will also feel discriminated against because this is a discriminatory tax . . . that they’re not charging domestic tourists,” said Enrique Turcott.

He suggested it must be considered alongside what he called “the Trump effect,” and could become a tool to be used against the state in recommendations that U.S. President Donald Trump might make regarding travel outside the U.S.

The governor, his party and political allies believe the new tax will have no impact on foreign tourism.

“I don’t think that this 15 or 16 dollars will scare tourists away, when they spend that on chewing gum . . . .” said Labor Party Deputy Camilo Torres.

The U.S. and Canada supply 70% of the state’s tourists; the remaining 30% come from South America and Europe.

Seventy per cent of the population depends on tourism and 80% of that number live in Los Cabos.

The tax is the first of its kind in any state in Mexico. How it will be collected has yet to be defined.

- See more at: http://mexiconewsdaily.com/news/foreign-tourists-will-pay-ta...

NOTICE; This will apply only to BCS Gringo tourists. I would also like to know how Mexico is planning on distributing the money gained to the local people who currently live in deplorable conditions.
:no:

[Edited on 1-25-2017 by BajaNomad]

Keith R. - 1-25-2017 at 11:20 AM

That's where the hard working hospitality staff/workers live - you know the ones cleaning the $500/day rooms and serving the $15 margaritas and $150 gourmet dinners.....

BajaBlanca - 1-25-2017 at 12:31 PM

but I really find it hard to believe that the money will really benefit the slum folks.

Udo - 1-25-2017 at 12:45 PM

Quote: Originally posted by BajaBlanca

but I really find it hard to believe that the money will really benefit the slum folks.

Hook - 1-25-2017 at 12:49 PM

He says it's for the poor, to improve their conditions. That they have no money to fix Cardboardlandia.

I suspect it will go to building further infrastructure for the wealthy.......and to line the pockets of the politicians when they leave office.

It's crazy how often I read about this governor or that governor suddenly disappearing with all this money after leaving office.

aguachico - 1-25-2017 at 01:00 PM

Quote: Originally posted by BajaBlanca

but I really find it hard to believe that the money will really benefit the slum folks.

Absolutely. Can't imagine there's much of a watchdog group.

DENNIS - 1-25-2017 at 01:32 PM

Quote: Originally posted by Lee

The article explains some logic to the fees. MX is a poor country. $16 for more than one day is not a bad thing. Tourists will spend the money or stay home. Totally worth it in my opinion.

Ridiculous. Mexico is not a poor country. Just poorly run.
"Pay to play" will just be another nail in the coffin.

[Edited on 1-25-2017 by DENNIS]

DENNIS - 1-25-2017 at 01:38 PM

Quote: Originally posted by BajaBlanca

but I really find it hard to believe that the money will really benefit the slum folks.

It wont. Employment will benefit everybody. [a Trump echo]
Quit trying to compete with China with slave wages and give real incentives to foreign investment.

Lee - 1-25-2017 at 03:37 PM

Quote: Originally posted by DENNIS

Quote: Originally posted by Lee

The article explains some logic to the fees. MX is a poor country. $16 for more than one day is not a bad thing. Tourists will spend the money or stay home. Totally worth it in my opinion.

Ridiculous. Mexico is not a poor country. Just poorly run.
"Pay to play" will just be another nail in the coffin.

[Edited on 1-25-2017 by DENNIS]

Mexico is not a poor country? Don't think you can document that. Poverty down here is well documented.

Pay to play is probably a non-issue in Cabo. Tourists have money and like spending it. Yup, $15/margs, cruise ships stopping in Cabo charging $300/$500/night. Corridor starting at $200/night.

Poorly run country, yes.

DENNIS - 1-25-2017 at 03:52 PM

Quote: Originally posted by Lee

[Edited on 1-25-2017 by DENNIS][/rquote]

Mexico is not a poor country? Don't think you can document that. Poverty down here is well documented.

Relative to what...and where?
I don't need to document anything but I'll give you this tidbit of reality:

https://en.wikipedia.org/wiki/Economy_of_Mexico

[Edited on 1-25-2017 by DENNIS]

Udo - 1-25-2017 at 04:11 PM

Give Mexico an alternative reality!

DENNIS - 1-25-2017 at 04:25 PM

.............................WHY??..............................

TMW - 1-25-2017 at 04:45 PM

What do they do with the hotel room tax they collect?

I don't remember what it is for Baja Sur but Ensenada collects a 16% Value Added Tax plus a 3% city tax.

Lee - 1-25-2017 at 06:58 PM

Quote: Originally posted by DENNIS

Quote: Originally posted by Lee

[Edited on 1-25-2017 by DENNIS][/rquote]

Mexico is not a poor country? Don't think you can document that. Poverty down here is well documented.

Relative to what...and where?
I don't need to document anything but I'll give you this tidbit of reality:

https://en.wikipedia.org/wiki/Economy_of_Mexico

[Edited on 1-25-2017 by DENNIS]

Relative to what? Try to follow this.

Relative to Cabo. Cabo has poverty relative to Cabo. Not Chiapas, not Guerrero. Not writing about Acapulco. Cabo.

Your tidbit says nothing. Don't document anything, just make provocative statements, and continue sounding like prez pu$$ygrabber. Alternative facts fine with me.

I don't know if the tax will have a positive effect on poverty. I'm writing that it sounds good and any improvement down here is a good thing. The Gov might be corrupt. Benefit of the doubt.

DENNIS - 1-25-2017 at 07:38 PM

Quote: Originally posted by Lee

[/rquote]

Your tidbit says nothing. Don't document anything, just make provocative statements, and continue sounding like prez pu$$ygrabber.

Shameful....disgraceful. Moreso for posting this on a board read widely by an international audience.

[Edited on 1-26-2017 by DENNIS]

MitchMan - 2-3-2017 at 06:34 AM

Won't happen, but, Mexico needs to raise income taxes somewhat on the well to do Mexicans, and raise the income taxes on the somewhat wealthy even higher and raise the income taxes on the very wealthy even more, and then slowly (but surely) raise the minimum wage. After that, Mexico needs to lower the IVA slowly but surely as well. Also, the Mexican government needs to go after non-government monopolies and monopolistic companies and break them up.

If the Mexican government did that, their middle class would grow and the ranks of the poor would decrease, domestic spending and GDP would increase, thereby creating more business opportunities and creating more jobs. Then the great disparity of wealth and income in Mexico (Mexico's disparity of income and wealth is in the top five in the world) would be reduced...which, after all, is the big picture salient problem. The people of Mexico have to pay intelligent attention and vote only for the non-corrupt people first, before this could happen.

Ah, just a pipe dream...it'll never happen, ever.

[Edited on 2-3-2017 by MitchMan]

[Edited on 2-3-2017 by MitchMan]

DENNIS - 2-3-2017 at 08:07 AM

Ohhhhhh...the irony of it all that a retailer is the largest private employer in poor, impoverished Mexico.

http://en.mercopress.com/2010/08/05/walmart-is-latin-america...

JoeJustJoe - 2-3-2017 at 10:05 AM

Quote: Originally posted by DENNIS

Quote: Originally posted by BajaBlanca

but I really find it hard to believe that the money will really benefit the slum folks.

It wont. Employment will benefit everybody. [a Trump echo]
Quit trying to compete with China with slave wages and give real incentives to foreign investment.

Dennis you got to be kidding!

So you're blaming Mexico for the slaves wages in Mexico?

You seem to never look north and see it's the USA that demands those slave wages, under threat it will move their plants to China or other country paying even lower slaves wages, as it's always seem to be a race to the bottom with the USA's multinationals making unreasonable demands to countries like Mexico, with bribes in hand.

I find it comical that you Dennis, want Mexico to give give real incentives to foreign investment!

What else do you want Dennis?

You don't think companies like Ford, and the maquiladoras close to the border, don't already get real incentives, with offers of cheap land, no state or local tax, ability to offer slave wages, with little to no benefits, and no job protections, so the male bosses could chase the females workers all around the desks with no threats of sexual harassment lawsuits from the female workers.

What more could Mexico offer to foreign investments? Perhaps real slaves?

Mexico, has already opened up part of it's state run oil company Pemex, to private investments, or really US oil companies, which only ramps up the misery scale in Mexico.
________

Dennis, you also do not seem to understand tourism, if you really believe a tourist tax for 350 or $16 dollars, if they stay more than one day, will just be another nail in Mexico's coffin. Perhaps, you're just thinking of your own mortality.

That's nothing to a well-heeled foreign traveler mostly from the USA, who is already going to pay about $2000 dollars in Cabo at a 4 or 5 star resort for 5 or 6 nights. ( I doubt Motel 6 types of motels will be paying the extra tax)

I could just hear an ugly American tourist now, " Oh what's this tourist tax of $16 dollars? I'm not going to pay it, lets go home, and go bowling. "

When I visit Las Vegas, which is often, I don't like paying the daily $25 to $29 dollars resort fee, but I do it anyway, and it doesn't seem to hurt tourism, and those resort fees, and tourists taxes are being added to many popular tourist destinations all the time. This is common knowledge to any tourists.

[Edited on 2-3-2017 by JoeJustJoe]

User Fees to raise Revenue

MrBillM - 2-4-2017 at 06:37 PM

I have always failed to understand why user fees (which is what a tourist tax amounts to) raise such hysteria.

User Fees are the fairest of taxation since they are entirely voluntary and will be effective or not dependent on the extent to which they raise additional funds versus their negative effect on tourist volume.

Should they create a net negative result, they will be modified or repealed.

Pay to Play.

Or Stay Away.

del mar - 2-4-2017 at 07:02 PM

hysteria! :lol:

Sweetwater - 2-6-2017 at 07:08 PM

I've just had the "new US taxes" on imported items explained to me.

As I understand it currently, if a company buys product from Mexico for $5 and sells it in the US for $10, they pay tax on the $5 profit. Under the Trump proposal to penalize them for buying out of the country, they will pay taxes on the entire $10 instead. If this doesn't flow through Congress, the alternative is that Trump will simply add tariffs to the products to increase their prices and bring that tariff tax into the US coffers and fuel inflation. Everyone loves inflation and a cheaper USDollar, right?

NAFTA will be the next target or maybe it's part of this new approach to US taxes on goods from cheaper countries.

DENNIS - 2-6-2017 at 08:16 PM

Quote: Originally posted by JoeJustJoe

I find it comical that you Dennis, want Mexico to give give real incentives to foreign investment!

Dennis can't respond at this time. He's been rendered speechless.

[Edited on 2-7-2017 by DENNIS]

MitchMan - 2-19-2017 at 01:34 PM

How "voluntary" is it to pay the 16% IVA on necessities?