What's Happening?
The Los Cabos Tourism Board has reported a significant increase in visitor arrivals, with nearly 3.8 million tourists visiting the destination in 2025, marking a 130% growth over the past decade. This surge in tourism has been supported by an increase in air
connectivity, with Los Cabos now linked to 42 international airports, including 32 in the United States. The region's hotel inventory has also expanded, with a focus on luxury accommodations, as 80% of the rooms are in the five-star category. The Average Daily Rate (ADR) for hotels reached $440 USD in 2025, up from $286 USD in 2017, while the Revenue Per Available Room (RevPAR) increased from $203 to $306. The tourism sector contributes approximately $7.7 billion to the regional economy and supports two-thirds of jobs in Los Cabos.
Why It's Important?
The growth in tourism in Los Cabos is a significant economic driver for the region, contributing to nearly 36% of Baja California Sur's total GDP. The increase in visitor numbers and spending supports various industries beyond traditional tourism, such as retail, transportation, and health services. This growth highlights the resilience and adaptability of Los Cabos' tourism sector, which has managed to thrive across multiple economic cycles. The focus on luxury and premium travel segments, including wellness and sustainability, positions Los Cabos as a competitive destination in the global tourism market. The expansion of air connectivity, particularly with the United States, underscores the importance of the U.S. market for Los Cabos' tourism industry.
What's Next?
Looking ahead, Los Cabos plans to continue its focus on diversified markets and sustainable development. New luxury developments and infrastructure investments are scheduled through 2026 and beyond, aiming to enhance the destination's appeal to high-end travelers. The tourism board is likely to maintain its efforts to strengthen air connectivity, particularly with key U.S. cities, to sustain and potentially increase visitor numbers. The emphasis on premium travel segments such as luxury, golf, and gastronomy is expected to attract affluent tourists, further boosting the local economy.
