Los Cabos Restaurants Forced To Close Due To Propane Gas Shortages

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Last Updated 2 years ago

As Los Cabos enters high season, many restaurants have been forced to close due to propane gas shortages, leaving them with no cooking gas. Tourism high season is underway in Los Cabos, and 2022 has proven to be a historic year for the region. According to recent figures, the region is expected to break the record for tourism visitors this year, with an increase of close to 20% when compared to the most recent full year of tourism travel in 2019. 

The region has gained popularity specifically in the eyes of Americans, with it recently being named one of the top destinations this winter. Many celebrities use Los Cabos as their primary vacation spot, with stars like Russell Wilson, George Clooney, and Simon Cowell recently spotted soaking in the beautiful beaches and relaxing in the luxurious resorts the region has to offer. Even weddings have seen an explosion of growth, with Los Cabos recently being named one of the top places for destination weddings in the world.

With the increase in tourism that Los Cabos has seen, there has also been an increase in demand at both resorts and restaurants. This demand has put a strain on infrastructure, with the most recent crucial issue being a shortage of gas in the beachfront region. Many hotels and resorts in Los Cabos are on the brink of shutting down due to a lack of gas used in many crucial facets of their business. 

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“It has affected us a lot in the last two weeks. We have had complications as restaurateurs in the hotel city as well, to the extent that gas has become scarce in our consumption centers,” said Esteban Domínguez, president of the Association of Friends of Los Cabos and a restaurateur himself. 

Domínguez believes this throttling of gas usage is happening primarily to small hotels and restaurants in the region, with priority of use being given to large properties that host a larger number of tourists and hold internationally recognized brand names. “As a restaurant owner, I have a serious problem. I have spoken with the gas company so that they supply equitably for everyone; not only support large companies, but also small restaurants.”

Many restaurants & resorts have begun taking drastic measures, such as buying large batches of consumer-sized propane tanks to fill up their gas reserves to ensure they can continue running. Other properties have not been able to keep up with demand due to the shortages and have been forced to close their doors, turning away large numbers of paying customers during the busiest time of the year. 

There seems to be some enigma behind why there have been such dramatic gas shortages this season. Local gas companies have been largely quiet regarding the situation, with only one statement saying, “we have equipment under maintenance.”

There have also been reports of issues in the transportation supply chain that have contributed to the shortage. One ferry broke down in a crucial port in the region and has been unable to be moved, which has caused traffic over the past 3 weeks in the delivery of gas. Additionally, semi-trucks hauling gas on the mainland have also had mechanical issues while trying to enter the region.

These issues, coupled with the demand for hot water and cooking gas from an increased number of tourists during the high season, have created an issue that is causing financial harm to many businesses in Los Cabos.

Los Cabos will need to strengthen infrastructure and build gas reserves if they want to keep up with the ever-increasing demand that is expected. Projections say visitors will continue to increase. There has been a steady stream of growth in Los Cabos, with a batch of highly anticipated new resorts opening in 2023 and even semi-private jet companies getting in on the action with new service offerings.