It’s been nearly six months since Hurricane Odile slammed into Los Cabos with a Category 3-strength vengeance. What’s the real story on the recovery billed as #Unstoppable?
Ruben Reachi, secretary of tourism for the State of Baja California Sur, gave Travel Agent the latest scoop on his way to ITB in Berlin.
“This February I am sure we can say we operated with the same number of visitors as February 2014. The reason is that we operated Los Cabos with 74 percent of occupancy last year, and this year we have 85 percent. We have 75 percent of the total hotel rooms working. I hope in the next three months we can recover 90 percent of the hotel room inventory,” said Reachi.
Another good sign: new airlift routes, including non-stop service from Washington DC via United Airlines, will launch this week.
“In January 2015 we had 96 percent of the total visitors that we had on January 2014, amazing,” said Reichi.
One segment that’s not quite back yet is luxury. That’s a tough break for a destination that admittedly wants to skew toward the exclusive rather than the mainstream.
Two out of three of Los Cabos’ AAA Five Diamond properties (Las Ventanas al Paraiso, a Rosewood Resort and One&Only Palmilla) have not reopened. A third high-profile luxury property, Esperanza, an Auburge Resort remains closed as well.
Reichi emphasizes the positive on the luxury front, however.
“Talking about our luxury hotels, Grand Solmar is working at full; The Resort at Pedregal (the former Capella Pedregal) is open too. Esperanza by Auberge will open in the first half of April; One&Only Palmilla will open in May and Ventanas al Paraíso (by Rosewood) will open in July,” said Reichi.
Interestingly, some of the properties have gone through more than post-hurricane clean-up.
The Resort at Pedregal’s owners broke ties with the Capella Hotel Group in a rather acrimonious showdown at the end of the year. But the property, in the luxury Pedregal enclave, is back in top form.
“The Pedregal has always been a premiere property for Cabo. It excels in so many areas, and has a great culinary reputation. Hopefully, clients are not noticing much of a change in the experience now that the management is different,” Rocio Martinez, owner of the Puerto Vallarta-based Concierge Online, tells Travel Agent.
Martinez said luxury clients are eagerly awaiting the return of other high-profile properties.
“Right now, Cabo is more sought after by the high-end clientele looking for what is trendy and upscale. They want to go where the celebrities go. Cabo hasn’t gotten back to its former level yet, which is unfortunate. A lot of clients are taking a look at Punta Mita instead,” said Martinez.
Agents are patiently playing the waiting game as well.
“Cabo has some of the most expensive properties around. But for the luxury market, the price doesn’t matter if they feel there is value. And with Cabo, the value comes in its uniqueness. The seclusion, the dramatic scenery and of course, the Mexican hospitality,” Jody Bear, co-owner of Bear & Bear Travel in New York City, tells Travel Agent.
Fortunately, agents will have more luxury product to sell in the near future. Some 2,000 new rooms are in the pipeline for the next two years.
The Cape, a Thompson Hotel opens this summer. It leads a list that will include JW Marriott Hotels & Resorts; Park Hyatt; Le Blanc Spa Resort’ VieVage Los Cabos, an Auberge Resort; Mar Adentro by Encanto; Solaz, part of Starwood Hotel's Luxury Collection and Ritz Carlton Reserve.
"We’ve changed a dramatic story into a success story. We look forward to what 2015 and 2016 have in store for us as a destination," said Reachi.