Mexico Rejects Royal Caribbean’s Mahahual Project Over Reef Risks

President Claudia Sheinbaum ordered Mexico’s Environment Ministry to re-examine Royal Caribbean’s planned Perfect Day Mexico water-park development in Mahahual, Quintana Roo, on May 18 after weeks of protests over the private cruise destination planned for a late-2027 phased opening. SEMARNAT rejected the Mahahual proposal the next day, and Sheinbaum later said Royal Caribbean had decided to withdraw it.

The setback affects a more than 200-acre project tied to Royal Caribbean’s $292 million acquisition of the Port of Costa Maya and surrounding properties. Opponents focused on the proposed scale, up to about 20,000 daily visitors, and the site’s proximity to the Mesoamerican Reef and protected mangroves beside a community of fewer than 3,000 residents.

SEMARNAT moves from review to rejection

Sheinbaum said she had instructed SEMARNAT and Environment Minister Alicia Bárcena to scrutinize the project. “We must not do anything that affects that area, which has a very important ecological balance, particularly for the reefs,” Sheinbaum said at her morning press conference. She added that the project could be moved elsewhere in Quintana Roo if another site did not carry the same environmental concerns.

“The Royal Caribbean Perfect Day project will not be approved,” Bárcena said at a May 19 press conference. SEMARNAT, the federal ministry responsible for environmental impact reviews, rejected three permits tied to the development, including one involving a pier, Sheinbaum said.

Royal Caribbean said it was disappointed by SEMARNAT’s decision but would respect Mexico’s environmental authorities. “Mahahual is a special place that deserves care and protection,” the company said, adding that it still sees potential to invest responsibly in Mexico. No replacement location was announced.

Opposition centered on Mahahual’s reef and mangroves

Mahahual is a small fishing community on Mexico’s southern Caribbean coast, about 70 kilometers from the Belize border. The nearby Mesoamerican Reef runs roughly 1,000 kilometers along the coasts of Mexico, Belize, Guatemala and Honduras, and the surrounding mangroves serve as coastal protection for the low-lying shoreline.

Environmental groups said the project would damage more than 90 hectares of jungle and mangroves and threaten species including jaguars and sea turtles. Public pressure included demonstrations by residents and environmental organizations, a Greenpeace banner at the Palacio de Bellas Artes in Mexico City, and online campaigns that drew in fans of BTS and Taylor Swift. Change.org petitions opposing the development drew more than 4 million signatures.

Local group Salvemos Mahahual said it would continue to oppose Royal Caribbean development plans in the area while supporting sustainable tourism. “By withdrawing voluntarily, the company avoids a formal refusal,” the group said, arguing that the cruise line could revise the proposal and return with another version.

How Perfect Day Mexico fit Royal Caribbean’s growth plans

Plans for Perfect Day Mexico called for more than 30 waterslides, multiple pools, bars, beach clubs, a lazy river, three beaches, cabanas and water sports areas. Royal Caribbean had promoted the Mahahual development as a private island-style destination connected to its broader destination strategy, which already includes Perfect Day at CocoCay in The Bahamas, Labadee in Haiti and Royal Beach Club projects in Nassau, Santorini, Cozumel and Vanuatu.

The Mahahual project also had a role in Royal Caribbean’s Western Caribbean and Texas deployment plans. On the company’s April 30 earnings call, Royal Caribbean Group President and CEO Jason Liberty said Perfect Day Mexico was expected to ramp up in early 2028, while Royal Beach Club Cozumel was expected to open in early 2028. Royal Caribbean International President and CEO Michael Bayley linked the Mexico destination plans with the line’s Texas growth strategy and the planned arrival of Icon of the Seas in Galveston in August 2027.

The existing Port of Costa Maya remains open to cruise calls. The purpose-built cruise port near Mahahual can handle several large ships and had reached about 1.5 million annual passengers by 2019; Costa Maya welcomed 2.8 million guests in 2025. No changes to existing Costa Maya calls were announced with the SEMARNAT decision.

Sheinbaum said talks with Royal Caribbean are continuing over whether another location could satisfy the environmental ministry. BNP Paribas analyst Xian Siew said an alternative could still be found, but it “could mean delays relative to the original late 2027 opening target date.”