According to Mexico News Daily, nightlife in Cabo San Lucas has been struggling with deceasing sales in bars and restaurants

This is perhaps attributable to a number of factor.

First, there is there is the economy in general.

Then, there is the growth of all-inclusives.

Cancun experienced the same phenomenon as to all inclusives.

All-inclusive resorts can severely impact local economies.

First, draw the tourists to the location. After the lure off the area is created in large part by the efforts of the locals, put a straw in it and suck it dry. All inclusive discourage use of local bars and restaurants

According to Mexico News Daily, up to 95% of tourism revenue leaves Mexico to foreign owners. All-inclusive jobs, tend to be low-paying when compared to locally owed businesses. Even all-inclusive management tends to be foreign.

There there si the narrative that Mexico is unsafe. This too feeds to the all-inclusive pitch of don’t leave our property.

By the way, Cabo gets about 4 million tourists a year. Anyone ever actually heard of heard of a tourist killed by cartel in Cabo? I have not. Compare Cabo safety to Hawaii. If nothing else Hawaii loses over 50 tourists a year to drowning. Las Vegas has a very high per capita murder rate, and Cabo is not even in its ballpark. Etc..