Royal Caribbean Scraps Mexico Water Park After Environmental Pushback
MEXICO CITY, May 27 (Reuters) — Royal Caribbean has officially abandoned its proposal to develop a large water park on Mexico’s southern Caribbean coastline, following a rejection of environmental permits by Mexican authorities, President Claudia Sheinbaum announced at her daily press conference Wednesday.
The decision, issued last week by Mexico’s Ministry of Environment, determined that the proposed “Perfect Day” park posed unacceptable risks to the fragile ecosystem in Mahahual, a coastal community situated near protected mangrove forests and the Mesoamerican Barrier Reef, the second-largest coral reef system in the world.
The project had drawn intense criticism from local residents and environmental activists, who argued that large-scale tourism infrastructure would exacerbate damage to the reef, already threatened by rising sea temperatures, pollution, and overdevelopment. Conservation groups warned that construction and increased cruise traffic could disrupt marine life and erode public access to the shoreline.
“The project will not go forward there,” Sheinbaum said, adding that her administration is now in talks with Royal Caribbean to identify a less ecologically sensitive location for a potential redevelopment. She did not specify which sites are under consideration.
The company did not immediately respond to a request for comment Wednesday, but following the initial permit denial, it had expressed optimism about investing in Mexico and indicated it would explore alternative proposals with stakeholders.
Originally marketed as the “biggest, baddest, boldest destination,” the park was part of a planned $1.5 billion investment that officials had previously touted as meeting high sustainability benchmarks. However, the environmental assessment found that the project would have required extensive dredging, infrastructure, and water consumption that threatened the surrounding ecosystems.
Sheinbaum noted that three permits tied to the park — including one for a pier — were all denied. The rejection underscores a broader shift in Mexico’s approach to coastal mega-tourism under Sheinbaum’s administration, which has placed greater emphasis on environmental review and community consent.
The controversy in Mahahual reflects a wider national debate over the impact of mass tourism along Mexico’s Caribbean coast. While beaches are constitutionally public, activists and residents say large resort developments and private cruise operator facilities often restrict local access, inflate property prices, and strain natural resources. The Mesoamerican Barrier Reef, a UNESCO World Heritage site, is already under pressure from over-tourism in areas like Cancún and Cozumel.
Royal Caribbean is still moving ahead with a separate beach club on the nearby island of Cozumel, scheduled to open later this year. That project, which involves a smaller footprint, has not faced the same level of opposition.
The Mahahual dispute may also influence how other cruise lines and resort developers approach Mexico’s environmental permitting process, as the government seeks to balance economic development with conservation. Industry analysts suggest that Royal Caribbean could redirect investment to other parts of Latin America or the Caribbean, though Mexico remains one of its most popular cruise destinations.
(Reporting by Raul Cortes, Aida Pelaez-Fernandez and Sarah Morland; Editing by Natalia Siniawski and Deepa Babington)