Puerto Peñasco has been at the center of the “perfect storm” of crappy events ever since COVID. If you didn’t know it, we are a tourist-based economy these days. This is as opposed to a fishing/farming-based economy of forty, or so, years ago. As such, if the ‘states’ catch a ‘cold’, we catch ‘pneumonia.’
It doesn’t take much to stop people coming here from the U.S. to visit our wonderful city; a negative news story, blowing everything way out of proportion, or reporting outright false information, will do it in a New York minute…or closing the border entry point at Lukeville, ostensibly to ‘relocate’ the agents who man it to help ‘process’ illegal entrants into the U.S. (even though the personnel were never relocated, and were working at the border in Lukeville the entire time), or getting into a tariff “tiff” with the Mexican government, causing extended delays and “tax” issues at the border. Just about anything ‘iffy’ will keep the tourists from visiting.
Of course, when this happens, local businesses suffer as does the local economy, and many of the residents of our fair city. The economic impact of the above scenarios cannot be overstated. If you’ve been here for awhile, you might have noticed that there have been markedly fewer tourists visiting lately. Spring break this year was anemic, almost matching the lows experienced during the COVID lockdowns up north. We had good attendance for only one weekend out of the entire month, where the entire month of March is usually awash with spring breakers. Town is not nearly as busy as it should be, given past performance.
Which brings me to the title of this column. I have read many comments from people who have visited Peñasco many times over the years, to the effect that it is ‘not the same as it was blank years ago’, or “there’s too much of a ‘California vibe’ to the town now.” But, by far, the most telling comments I hear from people who have visited more than a few times is something along the lines of, “man! It is ridiculous how expensive it has gotten here!”
Yes, we all know that the costs have increased in the past few years. Ask any local! The price of food and gas has doubled! Property taxes quadrupled a few years back! The local folks cannot expand their income streams to make up that big a jolt to their lives, but they must just to survive. Everyone knows it has gotten more expensive to live in Peñasco.
That being said, in years past one of the most attractive things about Mexico in general, and Peñasco in particular, was the reasonable cost of living and visiting here. That’s in our rear-view these days. The cost of lunch just about anywhere on Sandy Beach is astronomical, even surpassing some of the finer Scottsdale hotels. Who ever thought that there would be $15 Margaritas in Peñasco?! Who would have ever predicted that a tempura veggie platter and two margaritas would cost you $50 U.S., or 1,000$ pesos…without the tip? Sound outrageous?! Well, it is!
The hospitality industry in Peñasco has taken leave of their collective senses. Prices of food and drink have gone up, it is true, but not to the degree that charging Scottsdale-like prices would warrant (even Scottsdale prices in Scottsdale seem hard to justify for most working people). Wages haven’t kept pace in any real way here either. So, in reality, there is no justification for these outrageous prices, other than that the ‘gringos’ will pay them.
Well, interestingly, the ‘gringo’s’ are starting to notice that they are being preyed upon by the hotels and resorts in Peñasco and, along with the increased scrutiny and harassment at the Sonoyta border crossing, have decided to forego coming to our town for vacations. When San Diego is comparably priced, many people will travel there to recreate. It isn’t surprising. Those expats and long-term visitors who live in Peñasco, and frequent the smaller ‘watering holes’, are even starting to balk at the outrageous pricing of some of the more popular places. Preferring to either stay home or go to private/public venues such as the American Legion Post #15 on the Mirador where a drink and a meal are more than reasonable!
I predict that it will not be long before the hospitality industry in Puerto Peñasco will experience an identity crisis that will cause it to split into two different entities. One will continue the outrageous pricing policies that they are now promoting, attracting a clientele that will pay the prices, and one that will go back to charging reasonable prices for food and drinks, attracting the majority of people who still want to come to Mexico and enjoy themselves and not have to take out a second mortgage to do so. Just one man’s opinion.
