Cabo Tourism Grows Slowly - And That's Good

Los Cabos sees nearly 130% growth in visitor arrivals over the past decade, reaching 3.8 million travelers in 2025, with Baja California Sur leading Mexico's economic growth. The area boasts Mexico's highest hotel rates at $440 nightly and $7.7 billion in tourism revenue, fueling luxury developments like $900 million in new high-end resorts and suites by 2028. Downtown Cabo San Lucas nightlife declines due to all-inclusives, Gen Z habits, and delivery apps, but the shift to luxury attracts U.S.