In a stunning blow, Mexican authorities have put the kibosh on Royal Caribbean International’s plans to open a second private destination.
Why Perfect Day Mexico Was Shut Down
According to Reuters, the country’s Environment Minister, Alicia Barcena, said of the proposed park, “It is not going to be approved.” She also indicated that Royal Caribbean had taken steps to back away from the proposal, which would have seen the massive complex — including bars, restaurants and over 30 waterslides — open in the fall of 2027.
Various organizations had protested the project, citing concerns about damage to the environment as a whole and the surrounding reefs in particular. Indeed, Mexico’s president, Claudia Sheinbaum, addressed those concerns earlier in the week during a press conference. While she did not shut down the proposal at that presser, her words certainly seemed a strong indicator of what would come next.
“We must not do anything that affects that area, which has a very important ecological balance, and is particularly important for the reefs,” she stated.
Why This Project Was Important to Royal
In recent years, private destinations such as Royal Caribbean International’s Perfect Day Cococay, Norwegian Cruise Line’s Great Stirrup Cay and Carnival Cruise Line’s Celebration Key have played an increasingly important role when it comes to the bottom line.
(Photo by Richard Simms for Cruise Radio)
The logic behind this boom is simple: Why have guests spend their money in ports of call as opposed to at destinations owned and largely monetized by cruise lines themselves? And while these destinations often offer opportunities to enjoy a beach environment at no cost, each also offers opportunities to upgrade the experience… for a cost.
During Royal Caribbean International’s most recent earnings call, the company boasted of plans to expand it’s portfolio of private destinations from three to eight by the end of 2028 via its Royal Beach Club and Perfect Day collections.
This latest blow comes on the heels of geopolitical developments causing Royal, like other lines, to take a hit last quarter as itineraries visiting the West Coast of Mexico took a hit.
What Happens Next?
The move is not entirely surprising, given public opposition to the project. A Change.org petition calling for the project to be axed received over 4 million signatures, while various environmental groups — including Greenpeace — were extremely vocal about the potential damage the project could do were it permitted to move forward.
According to Reuters, Royal Caribbean said that it regretted but respected the decision by Mexico’s authorities. The company added that it hopes to work with Mexico in the future and plans to discuss options that will create jobs and environmental infrastructure.
