Los Cabos Builds on ‘Historic’ Visitor Year

New York -- Los Cabos enjoyed a “historic year ” in 2022 with a 25% increase in visitors over 2021 to a total of 3.5 million, 80% of them from the U.S. according to Rodrigo Esponda, managing director of the Los Cabos Tourism Board, speaking at a media event.

That increase, he said, came on top of a healthy 2021 when the destination recovered to 2019 numbers with 2.8 million arrivals. In sum, Los Cabos is the fastest-growing destination in Mexico.

The continuing boom, said Esponda, is a result of the destination’s emphasis on quality, its safety and a “culture” of being positive about tourism in a place where it is the only industry. The average daily rate for hotels increased in 2022 to more than $200 over 2019 to $513 with more luxury properties coming soon. With a total of 18,000 rooms, said Esponda, hotels average 200 rooms per location. A third of the resorts in Los Cabos are all-inclusive, but even those offer multiple options to enjoy restaurants and activities outside the resort.

The island’s feeder markets have diversified, said Esponda. Where arrivals had mostly been from the west coast, there is growth from New York because of nonstop flights on JetBlue and even from Florida although there are no nonstop flights from there. There are now 27 gateways in the U.S. offering nonstop flights to the destination – up from 19 a couple of years ago. There has been a 40% increase in the number of seats from the U.S. since 2019.  The destination is in conversation with Breeze Airways to add service from gateways to be determined.

Los Cabos, said Esponda, is fourth in Mexico in terms of cruise visitor arrivals, and number one on the country’s Pacific coast. There is capacity control for cruises so that there can be only four large ships in port at a time.

“Our proposition is quality,” said Esponda, “whether it’s food or the outdoor experience or golf.” And, he said, even if a hotel is a three- or four-star product it will offer a quality experience because of destination-wide standards. The only AAA Five Diamond all-inclusive resort anywhere, said Esponda, is the Grand Velas Los Cabos.  And Los Cabos has the highest concentration of Virtuoso properties in Mexico, the Caribbean and Latin America with 14. According to the tourism board, there was a $2,199 average travel price for travelers in the U.S. market who booked in March and are traveling in June

With quality experience a part of the culture, said Esponda, an agreement has been signed with Forbes Travel Guide to provide quality training to employees. “From the time you land to all your activities to restaurants .” said Esponda, “every element offers the same level of experience. Otherwise, people will not be satisfied.” Satisfaction is continuously measured, he said,  and if there are “red flags” in a specific area, officials will speak with the provider or sector.

“We are a united destination and that’s why we recovered so quickly,” said Esponda. There are associations for each sector and even a chamber of all associations and, he said, “We are all on the same page. “

Seeking to build on its success, Los Cabos is diversifying in what it has to offer -- moving well beyond beaches to a serious dining scene, cultural activities, adventure like hiking and diving, and a broader geographical reach into nearby coastal areas, deserts and mountains  – while continuing to grow its traditional appeal with 18 golf courses, world-class sport fishing and more. The only Tiger Woods-designed course outside the U.S. is in Los Cabos. And most hotels have meeting spaces to cater to that segment. Also being pursued is the LGBTQ+ market with participation in and sponsorship of events and attendance at trade shows.

On the key issue of safety, said Esponda, 92% of Mexicans perceive the destination as safe while 92% of visitors do. The destination is ranked in the top five in Mexico where the community feels safe. That is a result said Esponda, of a comprehensive public-private partnership that includes a sophisticated surveillance system, the fact that Mexican marines are in control and a dedicated task force.

Los Cabos’ isolation – 1,000 miles from the U.S., border at the southern tip of the Baja California Peninsula and difficult to reach by land, lends to the maintenance of safety.

As for health, said Esponda, 20% of residents are expatriates from the UJS and Canada, so there are state-of-the-art hospitals and good medical services.

And the luxury hospitality names keep coming with upcoming openings including Soho House, Park Hyatt, St. Regis, a second Four Seasons, Aman – and a second Grand Velas. Mexico has 15 Five Diamond resorts, said Esponda, and eight are in Los Cabos – more than in Los Angeles. And they provide totally different experiences, depending on their locations.

Travel advisors, said Esponda, account for 30% of visitors. He said there is extensive training available, including a Los Cabos specialist program that was revamped two years ago. Extensive technology is now in place to train advisors including tools like interactive maps and Skynav, which provides 360-degree virtual views of places and attractions. There are now eight digital guides – including for weddings, golf, one just for advisors– and a new one for sustainable events,

There are several trends that should maintain Los Cabos’ momentum, said Esponda. One is that millennials are now working remotely and can spend more time in the destination, and the second includes people who have semiretired and are buying second homes in Los Cabos.

Sustainability is a key selling point, said Esponda. While reefs worldwide are shrinking, Los Cabos’ reef, the furthest north in the Americas, is growing in size with species increasing. Long-time policies ban high-rise hotels and there are also density regulations that have limited room counts

Travel advisors, said Esponda, are now asking about things like water, energy and waste. That’s interesting, said Esponda, because it is not only travelers who are concerned but also travel sellers. That’s why the sustainable events guide was created. “You can go as deep as you want in understanding your impact,” he said, from measuring your carbon footprint to understanding that plastic waste has been reduced. “Sustainability is not an end,” said Esponda, “it’s a path.”

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