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August 03, 2011

Los Cabos has NEVER had more than 60% occupancy

So Why Build a Third Los Cabos with Cabo Cortes?
Image by Ralph Lee Hopkins. Cabos San Lucas, Gulf of California in Baja California Sur, Mexico

In a recent meeting to discuss the economic validity to build a Convention Center for the G 20 meeting Presidente Calderon would like to have in Los Cabos in 2012, SECTUR (The Federal Tourism Office in Mexico) and the Hotel and Developers of Los Cabos, stated that "Los Cabos has NEVER had more than 60% room occupancy.”

Los Cabos has 11,026 hotel rooms, which gives it capacity to receive 1.2 million tourists, but according to hotel operators and developers, services and infrastructure, such as hotels, restaurants, tourist operators, are all UNDER UTILIZED. The only year Los Cabos had an increase in occupancy (reaching 70% for 1 season) was in the year 2007, and only because of the destruction created by Hurricane Vilma in Cancun, so by default tourist’s chose Los Cabos. This year, the destination predicted its most optimistic forecast, expecting to reach 55% occupancy.

With these occupancy numbers, how does building a third Los Cabos with 27,000 rooms by investing in a new mega-development the size of Cancun make sense? More promotion and diversity in services is what Los Cabos needs. Save Cabo Pulmo! Say No to Cabo Cortes!

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