As high season continues in Los Cabos, the region predicts that the record-breaking occupancy rates seen in 2022 will continue into the new year.
During the final month of 2022, Los Cabos closed out the year with a hotel occupancy of over 90%, which was one of the highest rates seen in all of Mexico. Some tourist developments in the El Médano beach area saw rates of almost 100%.
The Executive President of the Los Cabos Hotel Association, Lilzi Orcí, commented that the region was ready for 2023 in which it will face new challenges.
“We are currently in the midst of one of Los Cabos’ best high seasons ever, particularly during December we had two vital dates in the tourist calendar, Christmas and New Year’s Eve, which has more than 90% occupancy rates”.
On average during 2022, Los Cabos had a hotel occupancy of around 71%, which is 15% higher than 2021. 2019 is widely regarded as being the best year ever historically for Los Cabos, until 2022, when those figures were exceeded by 2%.
According to the Ministry of Tourism of the Government of Mexico, these figures place Los Cabos as the tourist destination with the third highest occupancy. However, Los Cabos comes in first place for the region with the highest average rate at around $460 per night.
Los Cabos managed to welcome a whopping 7 million tourists in 2022, with a majority of these coming from the United States, and the area being a particular vacation favourite for celebrities.
However, in 2023 they expect this number to be replicated and then some, with 8 million arrivals predicted over the next twelve months, and many of these will be at the start of 2023 as people look to escape the cold winter weather.
High season is set to continue all the way through until April, and it is likely occupancy rates will pick up in February and March, after people have returned to work and begin booking getaways.
There are high hopes given the new developments in Los Cabos for 2023, as well as predicted cruise ship arrivals, that this year could be even bigger for the tourism industry and the region is keen to overtake other destinations such as Tulum and Cancun to reach the top spot.
A number of new luxury hotels are already planning to open in Los Cabos in 2023, including a Four Seasons, and the new Casa Velas resort. However, these all-inclusive resorts could push the average price per night up even further.
Other resorts planning to open include the Soho & Vidanta East Cape, St. Regis, a new Hyatt, Gran Solmar and the first Aman property, who have award-winning luxury hotels across the world.
The increase in arrivals for 2023 will also be due to more cruise ships scheduled to stop in the area. As of last year, it was predicted that at least 400 cruises would arrive in 2023, however these were based on regular routes.
It is likely that the figure could be up to double this as more and more cruises schedule new routes and arrivals to the area, such as Princess Cruises new routes from Los Angeles to Mexico which are set to sail in the summer.
To help with the increased demand and pressure on all aspects of the Los Cabos tourism industry, not only are the government still working on renovating Los Cabos International Airport, but are also increasing security for visitors.
Despite being one of the safest places in Mexico, there are plans to install up to 300 new security cameras in public places across Cabo San Lucas and San Jose del Cabo. On top of this, the military will continue to provide security and monitoring on the area’s beaches.
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