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 from around the world, 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.
Cabo Tourism Growth 2024
Gourmet Restaurants are the New Frontier in Los Cabos Tourism
Michelin Chefs and Regional Cooking Collaborations
A significant trend contributing to the tourism boom in Los Cabos is the emergence of new gourmet restaurants driven by Michelin-starred chefs and innovative 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, offering visitors a meal and a connection to the land and culture of Baja California Sur.
San José del Cabo: A Culinary Hotspot
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: A New Gem in the Culinary Landscape
Another highlight in the San José del Cabo area is Tamarindos, a newer property that has quickly gained a reputation for its exceptional farm-to-table offerings. Located near the estuary, Tamarindos boasts a breathtaking farm view and a labyrinth of mango trees that add to its rustic yet refined atmosphere. The property is a testament to the region’s agricultural richness, offering visitors a dining experience that is deeply rooted in the land. The emphasis here is on sustainability and authenticity, with every dish reflecting the flavors of Baja California Sur in its purest form.
Rising Costs and Increased Visitor Numbers
According to the Los Cabos Tourism Board (Fiturca), despite higher hotel rates, tourists are still flocking to the area. The average daily rate for hotel rooms has climbed from $417 in 2022 to $452 in 2023 and now to $517 in 2024. Surprisingly, these rate hikes have not deterred Cabo Tourism Growth in 2024 with hotel occupancy rates at 76% in 2024, slightly up from 70% in the previous two years.
Variation in Room Rates by Location
However, room rates vary significantly depending on the location within Los Cabos. For instance, hotels in the Tourist Corridor, which connects Cabo San Lucas and San José del Cabo, commanded an average room rate of $626 in 2023. In contrast, rooms in San José del Cabo averaged $383, while those in Cabo San Lucas were $316. The higher rates in the Tourist Corridor are due to the presence of luxury properties. These include renowned resorts like One&Only Palmilla, Las Ventanas al Paraíso, and Montage Los Cabos.
Shifts in Visitor Demographics
Domestic vs. International Travelers
Interestingly, while international visitor numbers are slightly up, the total number of tourists flying into Los Cabos through May 2024 was slightly lower than the previous year. This dip is primarily due to a 7.1% decrease in domestic travelers from within Mexico. This could be a response to the higher costs associated with Los Cabos, which is known as the most expensive destination in the country.
Increased International Connectivity
Despite decreased domestic travel, Los Cabos benefits from increased international connectivity. Flights are now available from 30 U.S. cities, 16 in Mexico, 11 in Canada, and two in Europe. However, the vast majority of tourists still come from North America, with 56% of flights originating in the U.S. and 38% from Mexico. European visitors remain a small but growing segment.
Trends in Cruise Ship Arrivals
Since the easing of COVID-19 restrictions, the cruise ship port in Cabo San Lucas, Mexico, has experienced a significant increase in arrivals. The port, known for its stunning coastline and vibrant tourist offerings, has become a top destination for cruise lines resuming operations. The recovery has been impressive, with more ships steadily docking at the port. An increasing number of passengers are eager to experience the beauty of Cabo San Lucas. This surge in Cabo 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 out 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.
Fluctuations in Cruise Ship Visits
Cruise ship visits to Cabo San Lucas have 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.
The Future of Los Cabos Tourism
Cabo Tourism Growth 2024 Projections for 2024
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, world-class beaches, it remains a prime destination for luxury and budget travelers alike, offering a mix of upscale resorts and more affordable options. The region’s ability to attract and accommodate an ever-increasing number of visitors despite rising costs is a testament to its enduring appeal.
