Posted on Published:
At least 20% more tourists have made their way to Los Cabos in 2022 compared to the number of travelers that arrived in the region in 2021. This has generated a surplus of over 100 million MXN (a bit over 5 million dollars) for the state government. The governor of the state of Baja California Sur, where Los Cabos is located, revealed today what his government plans to do with the money that tourists are leaving behind in the region.
As a tourist how much of the money that you’re paying for your stay is going to the local government? There are actually multiple taxes tourists are paying to the local government at different stages of their trip. What is that money being used for? According to governor Víctor Castro his administration has reached an agreement with local businesses to ensure that at least some of the money paid by tourists is used to repair the damages left behind by the recent storms that hit the region.
Taxes In Los Cabos Apply To Any Lodging Facility
The surplus that the governor referenced in his recent appearance is from the tax on hospitality services. According to state law, all lodging facilities must include a 3% tax on the total price per room or even campground, and that money should go directly to the state. Hotels are the places where most tourists are going to be paying this tax, but it also applies to RV parks and campgrounds, as well as local marinas. There’s been a lot of talk about an increase in this particular tax to 4%. As of today’s date, though, the tax remains at 3%.
Top 5 Travel Insurance Plans For 2023 Starting At $10 Per Week
Aside from the aforementioned tax, lodging facilities exclusively in Los Cabos also began charging what is known as an environmental sanitation tax. This tax sets travelers back 33.33 pesos (about $1.70 dollars) per night for each room that a tourist rents out in Los Cabos. As its name suggests this tax is meant to go towards environmental causes in the region. Los Cabos has long been dealing with a water supply issue. This particular tax is said to be going towards solving those issues in its first years of existence.
All Of The Purchases That Tourists Make Have A Federal Tax Attached To Them
All of the purchases made by tourists in Los Cabos, particularly those paid via a credit card or any other form of electronic payment have a 16% VAT payment attached to them. This is a federal tax known as IVA in Mexico. Since it’s a federal tax this is one that tourists headed to any part of Mexico are going to have to contend with.
Foreign nationals can actually ask for a tax return before leaving Mexican soil. There are a few requirements that purchases must meet to be able to qualify for tax returns. In broad terms these must be purchases of specific goods that you intend on taking out of the country. Things like expensive art, jewelry or even popular local drinks can qualify for tax returns. These tax returns can be solicited in specific modules that are located within the Los Cabos airport, and seaport as well.
A Lot Of The Money Collected From Tourists Is Actually Going Towards Marketing
As previously stated, the governor of Baja California Sur wants to funnel the money made from these taxes on tourists towards rehabilitating areas that have been damaged by the recent storms that hit Los Cabos. Victor Cosio wants 70% of the funds to go towards that.
The remaining 30% will go to the Los Cabos tourism fund (FITURCA). Most of the money that goes into that particular fund usually ends up being used on marketing efforts to get even more tourists to come to the region.
Plan Your Next Cabo Vacation:
Traveler Alert:Don’t Forget Travel Insurance For Your Next Trip!
Choose From Thousands ofCabo Hotels, Resorts and Hostelswith Free Cancellation On Most Properties
↓ Join The Community ↓
The Cabo Sun Community FB grouphas all the latest travel news, conversations and current events happening in Los Cabos
Subscribe to our Latest Posts
Enter your email address to subscribe to The Cancun Sun’s latest breaking news affecting travelers, straight to your inbox.