The town was established more than a century ago as a fishing village with a small port for shipping coffee. although the area has been inhabited by indigenous populations for centuries. It later became a popular destination after Federal Highway 200 was built along the country's Pacific Ocean coast during the 1960s.
The primary attractions are the beautiful beaches and championship surfing. It attracts thousands of surfing enthusiasts annually. Puerto Escondido is also an extremely popular destination for backpackers from all over the world and used to be a quite famous hippie getaway.
The port does continue to support commercial fishing activity.