Los Cabos is undoubtedly one of the travel industry’s most remarkable success stories, thanks to its mission to constantly raise the bar in tourism services.
“We have found a balance that maintains growth without sacrificing the quality that is so important to the residents of Los Cabos,” said Rodrigo Esponda, managing director of the Los Cabos Tourism Board. “Ninety percent of Los Cabos’ residents depend, directly or indirectly, on the tourism industry, and we are committed to promoting tourism that has a positive impact on the social, economic and environmental well-being of the destination while catering to the interests of visitors.”
Rodrigo Esponda (Source: Los Cabos Tourism Board)
Quality over quantity
“Los Cabos has been very fortunate to experience a rapid recovery over the past four years, along with a historic increase in visitor numbers,” Esponda added. “While we’re excited to have so many visitors experience our destination, trying to increase visitor numbers is not our primary goal.
“Rather, we believe that by prioritizing the quality of the experience and ensuring infrastructure supports sustainable tourism, we can create a more resilient and attractive destination for travelers.”
“Our vision is one of quality over quantity growth – that is, improving destination services and experiences and providing the highest quality service to our visitors rather than increasing visitor numbers. To truly focus on quality, we cannot aim for rapid growth.
The Evolution of Storytelling in Los Cabos
“Los Cabos’ vision and storytelling has evolved to meet the expectations of travelers, the environment and our community,” Esponda said. “Today, we focus on the gastronomic cuisine, unique wellness-based activities and luxury service that make us an exceptional destination.”
In terms of gastronomy, Esponda noted that Los Cabos is “one of the few Mexican destinations to be ranked at the top of Mexico’s first Michelin Guide, published in May 2024. Thirteen restaurants in Los Cabos are featured in the guide.”
The destination is also expanding its wellness initiatives, supporting local businesses offering temazcal ceremonies, astronomy tours and health retreats.
Paddleboarding around the Cabo San Lucas Arch (Source: Los Cabos Tourism Board)
Expanding the global market
“The United States is Los Cabos’ main sourcing market, accounting for 83.8% of all international travellers arriving by air, but we are seeing increasing interest and visitation from travellers around the world,” Esponda said. “We remain focused on expanding our global market to strengthen these international travellers’ confidence in Los Cabos’ tourism offerings. In some markets, such as Germany, we have solidified our position.”
The growth of luxury hotels
Los Cabos expects to invest more than $700 million in its luxury accommodation sector over the next three years. “The upcoming hotels will bring more than 700 rooms to the destination and create luxury properties that will further enhance the quality of service in this destination,” Esponda said.
“A key differentiator for the offerings coming to Los Cabos is that they all have branded residences opening alongside their projects, which speaks to the confidence and commitment investors have in this destination. Los Cabos is now the number one destination in Mexico for attracting foreign investment.”
“Of the $469 million in foreign direct investment that Mexico received in the tourism sector in the first quarter of 2024, the state of Baja California Sur, where Los Cabos is located, accounted for almost 35% of this tourism investment the country received, or $161.1 million.”
New Luxury Property
Luxury hotels scheduled to open in 2025 include Soho House & Beach Club, The St. Regis Los Cabos at Quivira, St. Regis Residences, Vidanta The Estates, Park Hyatt Los Cabos and Amanbari, with SIRO Palmilla set to debut in 2027.
Ultimately, Los Cabos is experiencing a rapid upscale expansion, as evidenced by the incredible growth of its luxury hotel sector. “More affluent travelers are showing a high interest in personalized service and special experiences to bring their wellness vacations to life,” Esponda said. “This reflects our focus on quality, and ultimately, a higher level of service and value for our visitors.”
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