MEXICO CITY, May 27 (Reuters) - Cruise company Royal Caribbean has abandoned its plan to build a large water park on Mexico's southern Caribbean coast after authorities denied environmental permits for the project, President Claudia Sheinbaum said on Wednesday.
The rejection readied by Mexico's environmental ministry last week had determined the proposed "Perfect Day" park was too invasive for the fragile ecosystem in Mahahual, a coastal town near protected mangroves and the Mesoamerican Barrier Reef.
The project drew strong backlash from residents and activists concerned about the impact of mega-tourism on the world's second-largest coral reef.
"The project will not be carried out there," Sheinbaum said at her daily press conference, adding that the government is in talks with the company to potentially relocate the planned development to a less environmentally sensitive area.
Royal Caribbean did not immediately respond to a request for comment on Wednesday. Following the initial permit denial, the company said it was optimistic about investing in Mexico and planned to discuss other proposals with stakeholders.
The development, once advertised as the "biggest, baddest, boldest destination," was part of a proposed $1.5 billion investment that officials had initially claimed would meet high sustainability standards.
Sheinbaum said on Wednesday authorities had informed the company that the three permits tied to the park - one of which involved a pier - were unsuccessful.
The dispute in Mahahual reflects a wider debate over mass tourism on Mexico's coasts. While beaches are constitutionally public, residents and activists argue that large resorts often restrict access to shorelines.
The cruise operator is still proceeding with a separate beach club scheduled to open this year on the nearby island of Cozumel.
(Reporting by Raul Cortes, Aida Pelaez-Fernandez and Sarah Morland, Editing by Natalia Siniawski and Deepa Babington)
