UPDATE: Los Cabos Hotel Association Says ‘No Changes’ for Visitors – Including New Tax

There is more evidence that the new ‘mandatory’ tourist tax on visitors to the Mexican state of Baja California Sur – home of the popular resort destination Los Cabos – is not ready for primetime.

Stating that it would “like to clarify the current status,” the Los Cabos Hotel Association issued the following statement to stakeholders regarding the new tourist tax that the Baha California Sur government calls the  ‘EmbraceIt’ contribution program. 

“As of today, no regulatory framework or operational system has been formalized for the implementation of the program. Therefore, all tourism operations in the destination remain as usual, and there are no changes for travellers visiting Los Cabos.”

The Hotel Association statement mirrored one provided to TMR Canada yesterday by Siren Communications, the company that represents Los Cabos tourism in Canada.

The issue came to light following a July 4 press release issued by Travelkore, the Toronto-based “global technology platform” that specializes in managing tourist tax payments.

It stated: “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 press release detailed the tax amount as $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,” the release stated.

Bertha Montaño Cota, Minister of Finance and Administration for the state of Baja California Sur was quoted 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.”

Hugo Chapoy, Chief Commercial & Marketing Officer at Tourist Tax México, sent Travel Market Report Canada a message in response to yesterday’s story on the issue titled Lost Cabos Has a New Tourist Tax – Or Does It?  

“Thank you for raising this important point. We fully understand the concern, and we’re actively addressing it. Just to clarify: the legal and regulatory authority over the Embrace IT program lies with the State Government of Baja California Sur and its Ministry of Finance, not with tourism promotion agencies,” Chapoy said.

“We’re currently working with the Ministry of Finance and Tourism Authorities to align communications and clear up any misunderstandings,“ Chapoy added.

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.

Travel Market Report Canada Editor in Chief John Kirk met recently 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. 

The Baja California Sur tourist fee comes in the wake of a similar tax in Quintana Roo, home of Cancun, which was introduced by state law on April 1, 2021. Ever since, there has been confusion and contradictory statements regarding what is known as ‘VISITAX.’ 

For years, many travellers have ignored the tax, without repercussion. While there has been talk of stricter enforcement, fines and digital tracing, there are few confirmed reports of that happening.

The clumsiness of the VISITAX implementation 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. 

Travelkore offers third-party online payment of that tax as well, and it can also be paid through a government website.