Huatulco Mexico is known for gorgeous beaches with turquoise water, snorkeling and diving, whale watching in winter, delicious Oaxacan food, all-inclusive resorts, and friendly locals.Huatulco is a resort region in the Mexican state of Oaxaca with white Pacific coast beaches. The region is made up of 9 bays, including the popular cruise-ship port of call Santa Cruz Bay. Tangolunda Bay is home to upscale resort hotels and a golf course. In the inland community of La Crucecita, there are restaurants and shops around a central plaza.