Tourism in Los Cabos has been on a remarkable upward trajectory over the past three years. The region has seen a consistent rise in visitor numbers, along with increased costs in accommodations, dining, and other travel-related expenses. As Baja California Sur’s southernmost municipality continues to attract vacationers worldwide, the big question is: how long can this trend last? With rising costs, one might expect a slowdown, but the data for the first half of 2024 tells a more nuanced story.
Tourism Growth in Cabo for 2025
Restaurants & Vills are the New Frontier
A significant trend contributing to the tourism boom in Los Cabos is the emergence of new gourmet restaurants driven by world-renowned chefs and regional cooking collaborations. These culinary powerhouses invest heavily to lure tourists with unique dining experiences that blend global techniques with local ingredients. Farm-to-table concepts are especially popular because they connect to the culture of BCS.
Culinary Hotspot: San José del Cabo
San José del Cabo has quickly become a focal point for these gourmet ventures. One standout is the Entorno Baja Beer Garden at Suelo Sur, a property that combines rustic charm with cutting-edge culinary innovation. This venue offers more than just great beer; it’s an experience. The garden is a vibrant space where local brews are paired with dishes crafted from the freshest ingredients, many of which are sourced from nearby farms. The collaboration between local chefs and international culinary experts has created a dynamic environment that continues to attract food enthusiasts from around the globe.
Tamarindos: Culinary Cooking Classes
Another highlight in the San José del Cabo area is Tamarindos, a new property in 2023 that has quickly gained a reputation for its exceptional farm-to-table offerings. Near the San Jose estuary, Tamarindos boasts a farm view and a labyrinth of mango trees that add to its rustic yet refined atmosphere. The property showcases the area’s rich farming heritage, offering a true farm-to-table experience. It’s also known for its private cooking classes, where guests can learn to prepare fresh, local dishes using ingredients grown right on-site.
The emphasis here is on sustainability and authenticity, with every dish reflecting the flavors of Baja California Sur in its purest form.
Rising Costs & Increased Visitors
Despite rising hotel prices, tourism in Los Cabos continues to grow. According to the Los Cabos Tourism Board (Fiturca), the average hotel rate increased from $417 in 2022 to $517 in 2024. Yet, occupancy rates also rose—reaching 76% in 2024, up from 70% in the two years prior—showing that demand remains strong heading into 2025.
Room Rates by Location
Room rates in Los Cabos vary by location. In 2023, the Tourist Corridor averaged $626 per night due to its luxury resorts like One&Only Palmilla and Las Ventanas. Meanwhile, San José del Cabo averaged $383, and Cabo San Lucas was $316.
Visitor Demographics Changing
Interestingly, while international tourism to Los Cabos has seen a modest increase, the total number of air arrivals through May 2024 is slightly lower compared to the same period in 2023. According to data from the Los Cabos Tourism Board, this decline is largely attributed to a 7.1% drop in domestic travelers from Mexico. Analysts suggest this decrease may be linked to rising travel costs, as Los Cabos continues to hold its reputation as the most expensive tourist destination in the country. Higher hotel rates, increased fuel prices, and inflation may be contributing factors that are making it less accessible for domestic visitors.
Cruise Ship Arrival Trends
This surge in Cabo’s cruise ship schedule has played a crucial role in revitalizing the local economy, benefiting businesses and the tourism industry as a whole. As more travelers seek Cabo’s unique blend of natural beauty and luxury amenities, the port’s bustling activity reflects the region’s growing appeal as a premier cruise destination.
Increasing Cruise Ship Stops
Since COVID-19 restrictions eased, the Cabo San Lucas cruise port has rebounded strongly, with more ships and passengers arriving. Its scenic coastline and vibrant attractions have made it a top stop for cruise lines resuming operations.
Cruise ship visits to Cabo San Lucas declined in 2024. The city hosted 226 ships in 2022 and 236 in 2023, bringing in a record 735,686 passengers. However, the first four months of 2024 saw 50 fewer ships compared to the same period last year. This decline is not seen as a long-term trend but rather a return to normalcy after an unusually high number of cruise visits in 2023, driven by the slow recovery of other cruise destinations post-pandemic.
In addition to the surge in cruise ship arrivals, there has been a noticeable shift in how tourists choose to travel within Cabo San Lucas. Many visitors now opt for private transfers to and from their resorts and rentals, a trend that has gained popularity post-COVID. In addition, Cabo Airport VIP Services have grown in popularity despite the cost per person to bypass long immigration lines. Mexican Immigration has also installed new scanning technology to help reduce wait times. Before the pandemic, shared shuttle transportation was more common due to budget-conscious travelers. With a growing emphasis on health, safety, and convenience, private transfers have become the top choice for tourists. They offer a more personalized and comfortable experience, allowing visitors to maximize their time in Los Cabos.
Future of Los Cabos Tourism
Cabo Tourism Projections for 2025
Looking ahead, Los Cabos is expected to continue its record-setting streak in 2024. Fiturca projects that over a million more U.S. tourists and nearly 900,000 domestic travelers will arrive by air before the year ends, bringing the total number of airline passengers to 3.93 million, slightly surpassing last year’s record of 3.86 million.
Balancing Luxury and Affordability
As Los Cabos continues to grow in popularity, its world-class beaches remain a prime destination for luxury and budget travelers alike. It offers a mix of upscale resorts and more affordable options. The fact that more and more people keep visiting the area, even with higher prices, shows how special and popular it really is.
