Sunday, August 25, 2024 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 an increase in the cost of 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.
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 visitors, with hotel occupancy rates at 76% in 2024, slightly up from 70% in the previous two years.
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 attributed to the presence of luxury properties such as One&Only Palmilla, Las Ventanas al Paraíso, and Montage Los Cabos. 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. Despite the decrease in domestic travel, Los Cabos continues to benefit 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. On the downside, cruise ship visits to Cabo San Lucas have seen a decline 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. 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. As Los Cabos continues to grow in popularity, 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. Chris Sands is the Cabo San Lucas local expert for the USA Today travel website 10 Best, and the writer of Fodor’s Los Cabos travel guidebook. He contributes to numerous publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living, and Mexico News Daily.
His specialty is travel-related content and lifestyle features focused on food, wine, and golf..
