7 Tourist Scams in Oaxaca

A couple hailed a taxi outside their hotel in the Centro to go to Monte Alban. The driver quoted 500 pesos for the 20-minute ride. Their hotel later told them the correct round-trip fare including wait time should have been no more than 300 pesos. The Broke Backpacker and Travelsafe Abroad both note that in tourist-heavy spots like the Centro, some Oaxaca taxi drivers refuse to negotiate and quote inflated fares — sometimes double the standard rate. For the Monte Alban route specifically, drivers have been reported charging 600-800 pesos when the correct round-trip rate is approximately 250-300 pesos, and some demand full payment upfront rather than the standard practice of paying half at drop-off and half at pickup.

A group of friends booked a mezcal tour through a street agent near the Zocalo who promised visits to three 'exclusive artisanal palenques' for $120 USD per person. The tour visited only one palenque — a commercial operation that mass-produces mezcal — and two retail shops where the guide earned commission on every bottle sold. The mezcal prices at the shops were 50-80 percent higher than buying the same bottles at Oaxaca's central market. Mezcal Educational Tours, a licensed operator, warns that many package tours insist on taking tourists to commission-paying shops, with guides earning up to 40 percent on purchases. True mezcal education requires visiting multiple artisanal palenques, not retail stores.

A tourist bought a 'hand-woven Zapotec rug' from a shop on Alcala street for 3,500 pesos, believing it was made in Teotitlan del Valle by indigenous artisans. When she visited an actual weaving cooperative in Teotitlan the next day, the artisans immediately identified her rug as machine-made in Puebla. The colors were synthetic dyes, the weave pattern was machine-regular, and the yarn was acrylic rather than wool. Mexico Travel and Leisure's guide on spotting fake crafts confirms that blankets and textiles sold to tourists in Oaxaca markets often aren't made in Oaxaca, aren't handmade, and are mass-produced in Puebla or imported from China, despite vendors claiming they are handmade local products.

A couple arriving at Monte Alban was immediately approached in the parking lot by a man claiming to be an 'official guide.' He insisted that the ruins were impossible to understand without a guide and quoted 800 pesos for a one-hour tour. The couple later discovered that official licensed guides charge 400-600 pesos, and that the site has English-language signage making self-guided visits perfectly feasible. The man had no visible SECTUR credentials. TripAdvisor's Monte Alban forum is divided — some say guides add tremendous value with backstories and history beyond the signage, while others report being hustled by unlicensed individuals who provided inaccurate information at inflated prices.

A traveler exchanged $200 USD with a man standing outside a bank in the Centro who offered a significantly better rate than the bank's posted rate. The man counted out what appeared to be 4,000 pesos, but after a quick hand movement, several bills were switched. The actual amount received was 2,800 pesos — the man had palmed 200-peso notes and replaced them with 20-peso notes during the count. The Broke Backpacker warns that street money exchangers in Oaxaca lure tourists with great rates but then shortchange them or hand over counterfeit pesos, and that the switch happens so quickly it is nearly impossible to catch in real time.

A solo traveler was eating at a restaurant near the Zocalo when the waiter returned with a bill that was 40 percent higher than expected. When questioned, the waiter explained that there was a 'special charge' for the live music and a 'cover' for the table setting. Neither was mentioned before the meal. In a separate incident, a traveler leaving a restaurant was followed by a waiter claiming she had been given the wrong change and owed an additional 200 pesos. She had already counted her change carefully and knew the amount was correct. The Broke Backpacker notes that restaurant over-pricing is one of the most common scams in Oaxaca, alongside fake sob stories designed to extract sympathy payments.

A traveler noticed a woman sitting outside Santo Domingo church holding a sleeping baby and asking for donations. Moved by the scene, she gave 200 pesos. Over the following days, she saw the same woman in different locations with the same baby, always asleep at the exact same angle. She later learned from her hotel owner that organized begging rings position adults with children (sometimes sedated) at tourist locations, and that the money rarely goes to the children's care. The Broke Backpacker and Travelsafe Abroad both identify child begging as a common tactic in Oaxaca's tourist areas, where an adult will beg for money holding a baby or young child near popular tourist destinations to increase donations.