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A very large part of the economy for Baja California Sur is tourism. Its natural beauty and well-developed tourist industry make the south of the peninsula an excellent setting for any vacation.

Although this state has one of the smallest populations in the country, it is still filled with possibilities. With the most coastal land of any state in Mexico, B.C.S. is an unbeatable destination for water sports and activities.

The state, almost an island, has three main tourist areas: Loreto, La Paz and Los Cabos. Loreto, in the north of the state, is a relatively new tourist spot offering all the comforts required for a relaxing stay. La Paz (Peace), the capital of the state, truly deserves its name. This marvelous port is framed by beautiful scenes of sunsets and the tranquil waters of the Sea of Cortez. By contrast, the Los Cabos area is the tourist mecca of the state. The hot spots here are Cabo San Lucas and San Jose del Cabo. They offer a wide variety of tourist services on the dazzling coast. One of the most popular attractions here is the Arch, a rocky formation eroded over time by the sea that rises from the water where the Sea of Cortez and the Pacific Ocean meet.

With 1,385 miles of coast, the beaches, harbors, and bays are a fundamental part of the tourist industry as well as the everyday life of the population of B.C.S. At the same time, the state is careful to preserve its natural resources and has protected approximately 544,000 acres of the surrounding waters.

Another major economic activity in the state is agriculture. Some of the crops include wheat, cotton, chickpeas, vegetables and organic foods. Cattle farming and fishing are also very important industries to the state.

Tourism is fundamental to B.C.S. with spots like La Paz, Loreto, Todos Santos and Los Cabos. The municipality of Los Cabos, in particular, has grown incredibly over the past two decades becoming one of the top tourism destinations in Mexico. With a first-class infrastructure, it has become a favorite among famous personalities from Hollywood, politics and sports. The quality of services and its amazing beauty has catapulted it to a world-class venue for events like the APEC meeting in 2002, weddings and other important meetings. Its principal cities, San Jose del Cabo and Cabo San Lucas, are separated by a 20 mile tourist corridor where you will find most of the fancy 5-star hotels.

Loreto is another spot on the Baja peninsula that has had a huge tourist boom. Large hotels and the support of FONATUR have stimulated excellent growth in this harbor. As the home of the first California mission built by the Jesuits, many consider this to be the capital of the Californias.

La Paz is the capital and the biggest city in the state. Its warmth and peace make it one of the most popular retirement spots in the world. Tourists craving tranquility and beauty travel to La Paz year after year. The most popular attractions are the beaches and the malecon filled with a wide variety of activities like sport fishing, water sports and ecotourism.