Los Cabos contributes more than 50% of Baja California Sur's economic activity: driving force or dependency?

Los Cabos currently has more than 43 thousand active economic units , of which 61% belong to the formal sector.

Los Cabos, BCS – August 7, 2025. According to data from the 2024 Economic Census (INEGI), the municipality of Los Cabos accounts for more than 50% of Baja California Sur's total economic activity . This data, revealed in recent state reports, confirms what many already suspected: the state's economic heart beats in the south , driven by tourism, construction, commerce, and specialized services.

Los Cabos currently has more than 43,000 active economic units , 61% of which belong to the formal sector , that is, businesses legally registered with the SAT (Tax Administration), IMSS (Mexican Social Security Institute), or municipal authorities. Additionally, it employs 89.2% of the employed population in the municipality, generating direct and indirect jobs for thousands of families in South California.

Why is Los Cabos so economically important?

The exponential growth of Los Cabos over the last two decades is due to several factors:

• High-income tourism , both domestic and foreign, sustains the demand for premium services.

• Large-scale real estate and hotel developments , requiring labor, supplies, transportation, maintenance, and financing.

• International air connectivity , with daily flights from the United States, Canada and other strategic points.

• A stable and attractive business environment has fostered the arrival of franchises, banks, technology firms, restaurants, and digital platforms.

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All of this has turned the municipality into a center of attraction that sustains much of the state's economic dynamism .

Opportunity or risk?

Although this concentration of economic activity may seem positive, it also presents structural risks :

• High dependence on a single municipality : When the economic engine is in a single area, any local crisis—such as hurricanes, social conflicts, or a tourism crisis—can have disproportionate effects on the entire state.

• Territorial imbalance : municipalities such as Comondú, Mulegé and Loreto have less dynamism and less public and private investment , which exacerbates social and infrastructure gaps.

• Pressure on basic services : water, energy, transportation, and housing in Los Cabos are at their limit, and growth is not always accompanied by adequate planning.

What to do in this scenario?

Regional development specialists point out that the challenge is not to slow the growth of Los Cabos, but rather to better distribute the benefits of development . This involves:

• Promote investments in other municipalities , with incentives for sectors such as agribusiness, clean energy, education, and alternative tourism.

• Review urban planning models to ensure sustainable and balanced development in Los Cabos.

• Develop state infrastructure that better connects regions to each other, not just Los Cabos.

Los Cabos is, without a doubt, the economic engine of Baja California Sur . But like any engine, it requires maintenance, strategy, and support. The challenge is to ensure that this dynamism does not become dependency, and that development reaches every corner of the state with justice, vision, and sustainability.

At BajaSur360 , we will closely monitor the changes, tensions, and opportunities that this growth represents for all residents of Baja California Sur.