Cabo San Lucas, commonly called Cabo, is a city at the southern tip of the Baja California peninsula, in the Mexican state of Baja California Sur .. Cabo has been rated as one of Mexico's top 5 tourist destinations .. it is known for its beaches, scuba diving locations, balnearios, the sea arch - El Arco de Cabo San Lucas, and marine life and the cabo wabo, made famous by rock musician Sammy Hagar, who owns a popular nightclub there..