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A decade of sustained tourism expansion in Los Cabos is now translating into broader economic leadership for Baja California Sur. According to figures released by the Los Cabos Tourism Board, the destination has recorded nearly 130 percent growth in visitor arrivals over the past ten years, reaching approximately 3.8 million travelers in 2025.
This performance does not stand in isolation. It forms the backbone of a larger economic story: Baja California Sur ranked as Mexico’s fastest-growing state economy in the third quarter of 2025. The tourism engine centered in Los Cabos is a decisive factor behind that statewide expansion.
A Decade of Strategic Growth
Rather than prioritizing volume alone, Los Cabos has developed a model centered on generating value. The destination recorded the highest average daily hotel rate in Mexico in 2025, reaching approximately US$440. Revenue per available room climbed to US$306, while occupancy levels remained near 70 percent. These indicators point to pricing power, stable demand, and a hospitality product capable of competing internationally within the upper tier of resort markets.
Air connectivity has been equally critical. Over the last ten years, direct connections expanded significantly, linking Los Cabos to more than 40 international gateways. Strengthened access from major U.S. metropolitan areas, along with diversified routes from Canada, Latin America, and parts of Europe, has broadened the visitor base and reduced dependence on any single market. This connectivity supports not only tourism flows but also investor confidence and second-home ownership trends.
Tourism as an Economic Multiplier
Tourism’s contribution to the regional economy now extends far beyond hotels and beach experiences. In 2025, direct tourism activity generated an estimated US$7.7 billion in economic output. The sector represents close to 36 percent of Baja California Sur’s gross domestic product and supports a substantial share of formal employment, particularly in Los Cabos.
The multiplier effect is visible across industries. Construction activity has expanded to meet demand for new resorts, branded residences, and infrastructure projects. Retail and dining have scaled alongside higher visitor spending. Transportation services, marina operations, tour companies, and professional services firms continue to grow amid sustained demand. As tourism revenue circulates locally, it reinforces state tax collection, wage growth, and reinvestment capacity.
Linking Local Performance to Statewide Growth
The statewide economic ranking reflects more than a single sector’s success, yet tourism remains the structural pillar of Baja California Sur’s expansion. Strong hospitality metrics translate into higher service activity, greater commercial transactions, and stronger supply chains across municipalities.
Los Cabos, the state’s primary economic hub, serves as the anchor of this performance. The consistency of its growth over the past decade has created a stable base that cushions seasonal fluctuations and supports broader diversification. As tourism income increases, it stimulates adjacent industries and strengthens the regional economy’s overall resilience.
Sustainability and Long-Term Positioning
The next phase of growth will depend on maintaining balance. Continued investment in airport infrastructure, water management systems, mobility solutions, and workforce development will be essential to sustaining competitiveness. Market positioning must remain aligned with quality, environmental stewardship, and service standards that justify premium pricing.
Baja California Sur’s economic leadership is therefore not an isolated statistic. It reflects a decade of strategic tourism development that has matured into measurable statewide prosperity. The connection between Los Cabos’ performance and the broader economic ranking underscores how a well-managed destination can become a driving force of regional transformation.
As federal indicators confirm the state’s leading growth rate, the message becomes clear: the success of Los Cabos is no longer confined to tourism statistics. It is shaping the economic trajectory of Baja California Sur as a whole.