Businesses in San José del Cabo’s Historic Center are experiencing one of the toughest low seasons in recent years, with sales declining between 35% and 40%.
According to industry reports from early July 2026, the downturn is significantly worse than during the same period last year.
Edgar Román, vice president of membership for the local Chamber of Commerce and a member of the Historic Center Business Association, said visitor numbers remain steady overall, but foot traffic through the district has dropped sharply for most of the week.
“Thursday is the only day with consistent activity, driven by the traditional Art Walk,” Román said. “From Friday through Wednesday, businesses experience a considerable decline in customer traffic.”
Competition and sector-specific impacts
Despite the slowdown, many business owners are keeping employees and maintaining operations in anticipation of improved tourism activity.
Román said another challenge is the growing number of hotels and restaurants, which has increased competition and spread visitor spending across more businesses.
The hardest hit sectors include restaurants affiliated with the National Chamber of the Restaurant and Seasoned Food Industry (CANIRAC), which report sales losses of about 35% because of fewer diners. The real estate sector has also been affected, recording an estimated 40% decline compared with 2025. Local retailers, souvenir shops, and boutiques have likewise seen business fall sharply, relying heavily on sales generated during Art Walk.
Román noted that while sales declined by nearly 25% in June 2025, a decrease considered typical for the season, the current year’s drop has been significantly steeper. “We are all doing our best to maintain sustainable working conditions for our staff until things improve,” he said. “We know this isn’t a great season for anyone, and we’ve had to rely on savings to weather the slowdown.”
Optimism returns with November high season
Despite current challenges, business leaders remain optimistic that the high season, which typically begins in November, will bring renewed economic activity with the return of tourists and seasonal homeowners.
“We know that for our destination, the season really begins in November,” Román said. “In real estate, we don’t rely solely on transient tourism. Many homeowners spend part of the year in Los Cabos. They leave during the hottest months and return later in the year, so we expect conditions to improve after October.”
