The Cabo economy is priced in dollars
Los Cabos is the most US-facing corner of Mexico. Most visitors are American, most hotels and restaurants quote in USD, and the local retail economy is built around credit cards rather than cash. A margarita on the Marina lists at $14. A seafood tower at a corridor hotel: $95. Jet ski rental: $120/hour. These numbers look more like Miami Beach than Mexico.
Knowing this lets you work around it: pay in pesos where you can, shift some meals to San Jose del Cabo's art district, and use ATMs over currency exchange counters.
Cabo San Lucas vs San Jose del Cabo
- Cabo San Lucas: nightlife, Marina, Medano Beach, all-inclusive resorts. Most expensive food and drink. Tourist-trap density highest.
- The Corridor (20km between the two towns): large resorts, golf courses, closed beach access. Food inside resorts, little else without a car.
- San Jose del Cabo: quieter, art district, better-value restaurants, more Mexican in feel. A good dinner there runs 30-50% less than Cabo San Lucas.
If you're staying in Cabo San Lucas, a taxi or rideshare to San Jose for a single dinner pays for itself.
ATMs and the rate game
SJD airport has bank-branded ATMs just past customs — pull your first 3,000-5,000 pesos there. In Cabo San Lucas, banks cluster around Plaza Amelia Wilkes and along Boulevard Marina one block back from the water. Fees: 30-60 pesos per withdrawal at fair rates.
Marina and Medano Beach ATMs are almost all Euronet. Their offered rate is 7-10% below mid-market plus a 150-200 peso transaction fee. A 5,000 peso withdrawal at Euronet costs $25-35 more than the same withdrawal at Banamex — for nothing.
San Jose del Cabo: bank ATMs on Plaza Mijares and around the gallery district. San Jose is a better place to load up pesos than Cabo San Lucas — fewer tourist machines, shorter lines.
Cards and dynamic currency conversion
Card acceptance is near-universal at restaurants, hotels, tour desks and chain stores. American Express works at most upscale resorts and Amex Centurion is common on the golf circuit.
The dynamic currency conversion trick is aggressive in Cabo. Many terminals default to USD and don't visibly offer MXN. Always ask explicitly: "cobrar en pesos, por favor." The merchant's USD rate runs 6-10% worse than a Visa or Mastercard rate. On a $400 dinner, that's $25-40 given away.
Cash essentials
- Taxi fares (no meters): 150-2,200 pesos depending on zone
- Street tacos in San Jose del Cabo: 30-60 pesos each
- Beach vendors on Medano: 50-300 pesos, haggling expected
- Tipping at restaurants and boats (cash preferred): see below
- Small shops in downtown Cabo San Lucas: cash usually cheaper than card
Tipping in Los Cabos
Tipping is a bigger deal here than elsewhere in Mexico because many service workers rely on US-style tips:
- Restaurants: 15-20% is expected in touristy venues, 10-15% elsewhere. Check the bill for included propina (often 12-18% at resorts).
- Bartenders: 30-50 pesos per drink or $2-3 USD
- Fishing captains: 10-15% of charter price, paid in cash to the captain plus 100-200 pesos per mate
- Golf caddies: $20-40 USD per round
- Hotel housekeeping: $2-4 USD or 40-80 pesos per night
- Taxi drivers: no tip required; Uber drivers: optional in-app
Daily budget reality
- Budget (non-resort hotel in San Jose, street food, local buses): 1,200-2,500 pesos/day — harder to achieve in Cabo than elsewhere in Mexico
- Mid-range (mid-tier hotel, mix of Cabo and San Jose dining, some tours): 3,500-7,000 pesos/day
- Resort luxury (all-inclusive, fishing charters, spa, private transport): 12,000-30,000+ pesos/day