July 10, 2025: Panama has officially scrapped its cruise ship homeporting incentive program after determining that the initiative failed to deliver the expected economic returns. The program, designed to reimburse Panama Canal transit tolls for cruise lines embarking or disembarking passengers, has now ended under Executive Decree No. 242, published June 30.
🚢 Background of the Incentive Program
Launched in 2019 under Executive Decree No. 35, the program offered:
- 100% reimbursement of canal tolls (Nov 2020–Dec 2021)
- 90% in 2022
- 80% in 2023
- 70% in 2024
The aim was to promote homeporting at the new Panama Cruise Terminal in Amador, complementing the existing Colón 2000 terminal on the Atlantic side.
📉 Why It Was Ended
A financial analysis concluded the initiative did not significantly boost cruise traffic or economic activity, falling short in:
- Increasing national provisioning
- Encouraging hotel stays
- Stimulating local spending by cruise passengers
🛳 Cruise Lines That Benefited
- Norwegian Cruise Line Holdings was the first to capitalize, signing a deal at the presidential palace in late 2021.
- Atlas Ocean Voyages also entered into an agreement with Panama in 2022.
🗓 Cruise Outlook
Despite the end of the incentives, Panama Canal authorities still expect over 225 cruise ship transits during the 2024–2025 season.