New Routes, Hotels and Infrastructure Fuel 10% YOY Growth; Tourism Boom Reflects Vote of Confidence in Los Cabos as a Safe and Secure Destination
New tourism data released today from Los Cabos Tourism Board and the Hotel Association of Los Cabos report a record quarter of tourism activity, fueled by a surge in hotel occupancy, visitor arrivals and RevPar that outpaced the national trend.
Kicking off 2018, the results represent an impressive 6-month growth streak since Los Cabos bounced back after seeing its first decline in three years last October. Sparked by an immediate 21% percent visitation rebound, Los Cabos enjoyed its strongest tourism year since 2010, growing by 16% and welcoming almost 3 million tourists in 2017.
“Despite some unprecedented challenges last year, Los Cabos finished 2017 stronger than ever. We are now in the driver’s seat to accelerate growth and take our destination to the next level,” said Rodrigo Esponda, Managing Director of Los Cabos Tourism Board. “We are thriving today because of the swift and strategic action we took to amplify investments focusing on strengthening security, infrastructure, connectivity, and hotel offerings to deliver the ultimate Los Cabos experience.”
In the past year, Los Cabos added more than 1500 new rooms with more than 4,000 more currently under construction by 2023. This significant increase in hotel inventory (7%), has been matched by increases in occupancy (82%), underscoring the destination’s continued growth.
Additional data insights and updates from Q1 include:
• Overall visitation grew by 8.6 % compared to the same period last year
• RevPar performance year to date increased by 7%
◦ Notably, during the Easter holidays, Los Cabos recorded 100% occupancy levels
• Opened two new hotel properties and 11 more expected this year representing more than $1billion in investment
• Increased airlift and new routes connecting the west coast in 2018. Currently, there are more than 360 direct flights weekly to Los Cabos from the U.S. representing more than 2.1 million seats
• Relaunched, the state-of-the-art International Convention Center, a major attraction for the Meetings, Incentives, Conferences and Exhibitions (MICE) segment
• A dramatic 90 percent decrease in security-related incidents this year backed by $50 million in upgrades to security equipment, personnel and infrastructure.
“Los Cabos remains the destination of choice for tourists seeking in a one-of-a-kind experience in Mexico that is safe, unique and authentic,” said Paloma Palacios, Executive President, Hotels Association of Los Cabos. “We are sustaining momentum. Hotels across the destination are reporting very strong occupancy rates signaling that tourists that know and love Los Cabos are back in full force. We’re looking forward to welcoming even more visitors this summer.”
Los Cabos’ tourism profile and built-in resilience is a rare strength for a destination – nationally and globally. Seven out of 10 visitors to Los Cabos are repeat guests and 90% of first-time visitors say they would return. In addition, 20% of tourists are fanatical, visiting Los Cabos four times a year.
Data Source: Hotel Association of Los Cabos; Grupo Aeroportuario del Pacífico – Los Cabos