Beachside on a budget, in Mexico.

By Travel + Leisure
August 24, 2012

Otherwise known as Rocky Point, this Mexican beach town is fast gaining popularity as a less-expensive, more convenient alternative to Cabo. Shrimping drew the town’s first settlers, but today’s visitors are more likely to beeline for its miles of sandy beaches, which are punctuated only by dark volcanic rock. Continued development and a newly updated boardwalk mean this area will only have more amenities, making it ideal for those who like to sunbathe as long as a cocktail is never far from hand.

Santiago's Ocean Services

Santiago’s Ocean Services arranges private ecotours from central Penasco to Bird Island, where you might come face to face with whales, dolphins, stingrays, and more than 20 species of exotic birds.

Casa del Capitán

Solid Mexican dishes and mariachi music complement fantastic views from the outdoor terrace.

Sonoran Grill

If you haul in your fresh catch of the day the chefs there will cook it for you.

Peñasco del Sol

The choicest accommodation in town, with 204 mod-chic rooms, a buzzing poolside scene, and prime location on Sandy Beach.