Table of Contents
ECONOMIC DEVELOPMENT - Key Findings

Tourism

Tourism is a highly-visible and powerful economic driver in Baja California Sur. Since 1988, the tourism sector has maintained a 20% average annual growth rate.[1]  In particular, tourism that is focused on natural areas, also known as adventure tourism or ecotourism, is quickly evolving because of growing global demand.[2]  Los Cabos is the most popular tourism destination in the state, with La Paz and Loreto close behind.

Tourism has also positively influenced infrastructure improvements and job creation as well.  There are two ports dedicated to receiving cruise ship traffic; hotel, resort, and second home developments rely on seasonal tourist inflows; the three major airports in the state (La Paz, Los Cabos, and Loreto) have adjusted their flight schedules to accommodate visitors.  From 1999 to 2003, service and tourism firms have created 3,706 permanent and 3,063 temporary jobs.[3]

Building on this early success, the Mexican government’s national tourism agency, FONATUR, is aggressively promoting the “Proyecto Mar de Cortés,” which will generate private investment for hotels, marinas, resort complexes, and adjacent infrastructure, such as roads, desalination plants, and other facilities that benefit the public.  However, based on an assessment of the potential tourism landscape, Baja California Sur was considered to have a medium rating, with 66.5% of the entire territory rated as unfit for tourism; this places intense development pressures on the remaining 33%, mainly on the coast. Furthermore, the tourism potential in Baja California Sur is directly related to its high ecological values, which assumes that the development of tourism is essentially linked to nature, especially in the sierras, the coastline, and the islands.  These are the region’s competitive advantages at the national and international levels.[4]

In addition, a better distribution of economic benefits from tourism is needed.  State programs for small and mid-sized businesses would allow local entrepreneurs to participate at a higher level.  For example, if FONATUR’s proposed urban development plan is accepted in Loreto, which extensively expands the developable coastal zone north and south of town, local businesses in the town’s center will suffer, as tourists seek services closer to their accommodations.  In contrast, locally-owned businesses in Laguna San Ignacio are seeking language and natural history training, as well as business loans, to improve their service, provide additional jobs to fellow residents, and enhance overall quality of life in their communities.

State-funded marketing campaigns, such as the proposed “Route of the Missions” promotion, would be a welcome addition to encourage nature and adventure tourism.  As one of the fastest-growing tourism sectors in the state, public funds could play a big role in solidifying Baja California Sur as a destination for nature tourism, much like the advertising campaigns for Costa Rica.  Currently, public funds are only expended for traditional tourism – golf, hotels, sportfishing, and cruises.

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[1] Antonina Ivanova-Boncheva; Manuel Ángeles-Villa  (eds.), Op. Cit., pp. 286-287.

[2] Ecoparque Isla San José, Caracterización Ambiental: Isla San José, Book 1, La Paz, 2003, p. 1.

[3] Gob. Del Estado de BCS. V Informe de Gobierno 2003-2004,(V Report on the administration of the state), Lic. Leonel Cota Montaño, pp. 114-115

[4] Gob del Estado de BCS, PEOT, Op. Cit., p. 60.