Adjacent to the Caribbean sea and the Strait of Mona, Cabo Rojo is well known for its beaches and its resort area. While Cabo Rojo lacks an airport, (Mercedita Airport and Eugenio Maria de Hostos Airport, both passenger airports, are about an hour an a half away by car), Cabo Rojo's touristic industry has flourished over the years, with many hotels contructed in the area. Apart from beach tourists, Cabo Rojo has also benefacted from the fishing industry, proving to be a favorite among Puerto Rican and American fishermen.

Cabo Rojo's mayor, Santitos Colon, made history in 1988 by becoming the first politic figure in Puerto Rican history to win election for a major office in Puerto Rico while running as an independent candidate. Disenchanted by the practices at his PPD party, he left the party and ran as an independent, winning the elections.