Los Cabos sees 7% drop in international tourists, but luxury segment continues to grow
Los Cabos has recorded a 7% decline in international visitor arrivals during the first seven months of the year—equating to roughly 100,000 fewer tourists—yet the high-net-worth traveler segment has shown greater resilience, maintaining slight growth in room sales through the Virtuoso network.
This information was shared by Rodrigo Esponda, Director of the Los Cabos Tourism Board (FITURCA), during an interview with *Los Cabos a la Carta* from Las Vegas, Nevada, where he is attending the Virtuoso conference—one of the leading international networks specializing in luxury tourism.
Esponda explained that 2,500 of the 19,500 hotel rooms in Los Cabos are currently part of the Virtuoso network, representing approximately 13% of the destination’s total hotel inventory.
“This is precisely the segment of travelers most active in golf, sport fishing, private aviation travel, and gastronomy,” the FITURCA director noted.
He highlighted that this segment also boasts a longer average stay than the traditional visitor—about two days longer—and tends to book further in advance, as many of their trips are tied to celebrations such as birthdays and anniversaries.
Fewer international visitors
He acknowledged that overall international tourism trends have been less favorable this year. From January to July, Los Cabos saw a 7% reduction in international arrivals, with the impact being particularly pronounced during May, June, and July.
Among the contributing factors, he cited rising jet fuel costs, the general increase in travel expenses, and the appreciation of the Mexican peso, alongside other issues affecting demand from the United States.
However, he asserted that the luxury segment has performed differently.
“Arrivals in the high-income segment have been the least affected,” he stated. According to Esponda, room-night sales through Virtuoso are actually showing slight growth compared to the same period last year, confirming the market’s resilience in the face of current conditions.
Confidence in the winter season
Regarding the months of August, September, and October—typically periods of lower tourism activity—the FITURCA director noted that a drop in US visitor arrivals is still expected, though it would be less severe than the decline seen in June and July.
The outlook shifts starting in November, as advance bookings and scheduled airline capacity begin to show signs of recovery.
“What we are seeing is continued growth from November onwards,” he stated.
He added that there are notable increases in connectivity from Europe and South America, alongside new connections from the United States and Canada set to launch between October and November.
Consequently, Esponda believes the upcoming winter season could be a positive one for Los Cabos.
Domestic tourism grows but fails to offset the drop in international visitors
The domestic market has also shown positive signs. In July, the number of Mexican tourist arrivals rose by 7% compared to the same month the previous year.
However, this growth is still insufficient to offset the decline in international tourism, particularly from the United States.
Esponda noted that international visitors account for around 70% of Los Cabos’ annual tourism; beyond representing a significant volume, they generate greater economic impact due to their purchasing power.
Aiming to boost tourism revenue
Given the current landscape, FITURCA is maintaining strategies focused not only on recovering visitor numbers but also on increasing the spending and length of stay of those visiting the destination.
The official highlighted that approximately 80% of tourists visiting Los Cabos leave their accommodation for at least one night to dine out, while nearly 18% rent a vehicle to explore different areas of the destination.
“We must continue focusing on ensuring that tourists visiting Los Cabos generate greater economic impact and stay longer,” he explained.
To this end, he noted, efforts are underway regarding training, product development, and guide preparation, with the goal of introducing visitors to the diverse experiences the destination offers beyond its hotels.
Los Cabos holds its own against other destinations
Esponda pointed out that FITURCA also monitors the performance of other Mexican tourist destinations, noting that various beach areas have recorded significant drops in visitor arrivals.
In the case of the Mexican Caribbean, he added, the sargassum issue has also impacted international perceptions of Mexico as a tourist destination.
“The fact that the impact of sargassum has received so much publicity affects our image as well; because people tend to generalize about Mexico, Los Cabos has also been affected,” he commented.
Given this situation, he deemed it necessary to step up promotion and diversify the country’s tourism offerings by leveraging elements such as culture, gastronomy, golf, wellness, and nature.
Hotels remain strong despite vacation rental platforms
The interview also touched upon the supply of accommodations via vacation rental platforms. Esponda highlighted that one of Los Cabos’ strengths is that approximately 60% of its visitors stay in hotels.
He viewed this as an advantage due to the wide range of complementary services hotels provide and the formal employment they generate within the community.
“The hotel sector is also the main driver of our region’s economy,” he stated.
Finally, Rodrigo Esponda affirmed that FITURCA would continue working on new strategies regarding connectivity, promotion, and events to strengthen the high season and ensure that winter brings a boost to tourism activity in Los Cabos.