Los Cabos Has a New Tourist Tax – Or Does It?
by Bruce Parkinson
The Mexican state that is home to Los Cabos is trying to launch a controversial visitor tax.
Here we go again. Another Mexican state has imposed a ‘mandatory’ tourist tax, similar to the controversial ‘Visitax’ in the state of Quintana Roo (home of Cancun and Playa del Carmen), that has confused travellers and travel advisors for years now.
The latest Mexican state looking to extract more money from visitors is Baja California Sur, home to popular tourist destination Los Cabos.
Is the tax really mandatory? Will there be repercussions for visitors who don’t pay? These are valid questions that don’t have clear answers.
A press release was issued July 4 by Travelkore, the Toronto-based “global technology platform” that manages tourist tax payments and “ensures regulatory compliance.”
It states: “The Government of the State of Baja California Sur will officially implement the EMBRACE IT tax on foreign visitors who stay in the state for more than 24 hours. This measure aims to generate funds to strengthen natural environmental conservation, community development, and local tourism infrastructure. The established amount is $470 MXN per person (approx. $34 CAD or $25 USD). Payment must be made exclusively online through the Travelkore platform, and travellers must present their proof of payment at the state’s entry and exit points.”
Here’s where the confusion starts: Siren Communications, which represents Los Cabos in Canada, confirmed the following to TMR Canada in an email exchange.
“Further to our discussion yesterday, no regulatory framework or operational system has been formalized. As of today, all operations in the destination remain as usual. There are no changes for travellers.”
Travel Market Report Canada Editor in Chief John Kirk met exclusively with Rodrigo Esponda, Managing Director of the Los Cabos Tourism Board. During the wide-ranging interview there was no mention of any impending tax announcement. Watch the interview here.
Bertha Montaño Cota, Minister of Finance and Administration for the state of Baja California Sur said in the Travelkore press release:
“Our commitment is to provide an unforgettable tourism experience while protecting our ecosystems and supporting the well-being of local communities. EMBRACE IT is a key tool to achieve this. This initiative is outlined in Article 129 Bis of the Finance Law of the State of Baja California Sur, as well as Section IV-VII of the General Rules, which specify the Means and Mechanisms to pay the Tax Fee. It will be implemented in collaboration with Tourist Tax México S.A. de C.V. (TTMX), utilizing Travelkore’s SaaS technology.”
The tax has been in the planning stages for some time. A year ago in July, 2024 Travel Market Report noted: “Baja California Sur will soon charge international travellers a mandatory $25 USD visitor tax.”
The fee was introduced in 2022 as the EmbraceIt Fund for a Sustainable Baja California Sur, and was framed as a “contribution” that guests were “encouraged” to pay. Any traveller over the age of 12 visiting the state for business, medical, education, or leisure purposes for more than 24 hours was asked to contribute to the fund. Anecdotally, few did.
Quoting a story from Open Jaw, Travel Market Report said the fee’s voluntary nature was changing, with “strict reinforcement set to begin in October, 2024.” The story also said that “failure to pay the fee could result in a $1,200 fine.” A year later, there has been no strict enforcement and no evidence of any fines being imposed.
Open Jaw is the same media outlet that reported last week that the Baja California Sur tax is mandatory and that “proof of payment required at the state’s various entry and exit points.” That conclusion appears to be premature at best.
Ever since the Quintana Roo VISITAX was introduced by state law on April 1, 2021, there has been confusion and contradictory statements. The situation has led to many scammers setting up fake payment sites, and either charging unwary travellers more than the prescribed amount – in Quintana Roo that amount is 271 MXN per person (about $20 CAD or $15.00 USD) – or stealing their credit card information.
Many frequent visitors to CUN have never paid the VISITAX, without repercussion, despite threats to the contrary. On the other hand, many travel advisors are not taking chances, and advising clients to pay the tax through the Travelkore website.
