Locals in Los Cabos are very worried about inflation increasing the prices of basic products in the region. So far, in 2023, the price of corn is up 20 to 25% from the start of the year. Also, gas prices in Cabo are 2 pesos per liter above the national average. When gas prices go up, naturally, the cost of goods does so as well.
With Cabo being such an isolated area, prices in the region tend to spike higher when inflation is present compared to the rest of the country. So far, due to the rise in corn prices, tourists can expect to pay at least 15% more for street tacos compared to 2022 prices. Plenty of restaurants and other venues are increasing their prices, but is this something that tourists should be worried about?
A 15% Increase In All Of Your Meals In Los Cabos?
The Cabo chapter of the Mexican chamber of commerce are the ones who’ve come up with the 15% increase on average in the prices for food at restaurants. A representative of the organization mentioned,
“Giving you an example, if tortilla prices go up to 23 pesos per kilo, we have to increase menu prices by at least 15%. These increases help us to cover the expenses generated by the increase in the basic products”.
For travelers who regularly come to Cabo, that could mean having to add that 15% increase on the prices of all the meals that they eat in the region. For street food meals, that may not be a massive jump in the final bill.
When you add all those costs up throughout an entire vacation, though, that could be a bigger issue. One could also argue, however, that after spending so much money on flights and accommodations for a Los Cabos vacation, an extra 15% on meals outside of an all-inclusive would likely go unnoticed.
This Can Make All-Inclusive Packages Even More Appealing
Many Cabo-based hotels have been leaning towards adopting an All-Inclusive model. Even world-renowned hotel chains that don’t offer these types of deals in other places are adapting to this growing demand in Cabo.
As far as hotel rates in Cabo go, those have been going up considerably in the last couple of years. However, that has been blamed more on the increasing demand and the fact that tourists are seemingly willing to pay heftier prices for their Cabo vacation.
Currently, the average price per night for a Cabo hotel sits at 480 dollars through the Spring. As previously stated, those prices have increased more due to the uptick in demand than inflation issues.
Still, travelers who want to head to Cabo in April can find all-inclusive packages for 250 to 320 dollars a night at decent hotels. Eating mostly at the resort can also help travelers avoid the inflation situation altogether.
Another thing that American tourists may currently want to take into account is that the Mexican Peso has increased in value against the dollar in recent days. Currently, you’ll be lucky to get 18 pesos per dollar when the exchange rate has been over 20 pesos per dollar for years.
This is likely a temporary issue, but certainly one that can affect American tourists heading to Mexico this Spring.
Is Inflation An Issue Or Not For Travelers?
Currently, the exchange rate issue is potentially one that could sneak up on travelers a bit more. Particularly if you’re a Cabo regular that pays most of your bills with a card. You’ll be paying more American dollars for meals and amenities even if the actual prices have yet to increase due to the inflation situation.
Again that could be a temporary issue, but one that travelers would do well to take into account if they plan to travel to Cabo. Of course, the exchange rate issue is a global economic phenomenon and not something that Cabo hotels or restaurants are pushing.
Ultimately, when planning a Cabo vacation, inflation is unlikely to make a huge financial impact on your trip — for now.
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