Los Cabos is a municipality located at the southern tip of Mexico's Baja California Peninsula, in the state of Baja California Sur. The area wa…Los Cabos is a municipality located at the southern tip of Mexico's Baja California Peninsula, in the state of Baja California Sur. The area was remote and rural until the latter 20th century, when the Mexican government began to develop Cabo San Lucas for tourism, which then spread east to the municipal seat. The main draw is the climate and geography, where desert meets the sea, along with sport fishing, resorts and golf. This tourism is by far the main economic activity with over two million visitors per year. Over 1 million visit from the United States.