Mexican authorities have rejected Royal Caribbean’s Perfect Day Mexico project, citing environmental concerns about damage to the Mesoamerican Reef and coastal ecosystems.
“It is not going to be approved,” said Environment Minister Alicia Bárcena at a May 19 press conference, according to Reuters. “The company is also taking steps to withdraw the project.”
The decision represents a significant setback for Royal Caribbean’s private destination strategy, according to BNP Paribas analyst Xian Siew.
“Perfect Day Mexico was expected to be even bigger than Perfect Day CocoCay,” Siew said in a May 20 research note. “Perfect Day Mexico was expected to boost the experience in the Western Caribbean – including unlocking the Texas market – similar to what Perfect Day CocoCay did for the Eastern Caribbean.”
The planned 90-hectare waterpark would have featured over 30 waterslides including a 170-foot-tall slide tower called Jaguar’s Peak, multiple pools, bars and beach clubs.
It would have the capacity to receive up to 21,000 visitors daily.
Mexican President Claudia Sheinbaum raised serious concerns though about the project during the May 19 press conference.
“We must not do anything that affects that area, which has a very important ecological balance, and is particularly important for the reefs,” Sheinbaum said.
Royal Caribbean responded to Reuters that the ‘’company remains optimistic about investing in Mexico and plans to talk with stakeholders in the coming weeks about local job creation and environmental infrastructure.”
Environmental group Greenpeace warned that the region was at a “crucial juncture,” noting that the project and its link to expanded cruise tourism could cause significant environmental consequences.
A Change.org petition demanding the project be halted reached more than 4 million signatures.
The petition organizers have expressed that the waterpark would be built on protected mangroves, which would threaten the way of local life, including the community’s access to beaches, and also the survival of marine life in the vicinity.
According to Infobae, environmental activists have been warning that the project would also result in deforestation of more than 90 hectares of local jungle and mangrove, a loss of habitat for marine fauna and a progressive deterioration of one of Mexico’s most valuable ecosystems.
The area is home to jaguars and serves as nesting grounds for turtles along the coast, which gives way to dense mangrove forests and tropical jungle.
Royal Caribbean has a pipeline of several new destinations including Royal Beach Clubs in Nassau, Santorini and Cozumel, Mexico, though questions still remain about the Cozumel project given the Perfect Day Mexico news, Siew said.
“Though the future of Perfect Day Mexico is in doubt, Royal still has other levers to drive net yield growth,” Siew said.
BNP Paribas noted that moving the project would prove difficult as Royal Caribbean acquired the Costa Maya cruise port in the area in 2025, which eases access.
“It is possible an alternative is found for Perfect Day Mexico, but it could mean delays relative to the original late 2027 opening target date,” Siew said.
