We investigate hp-stabilization for variational inequalities and boundary element methods based on the approach introduced by Barbosa and Hughes for finite elements. Convergence of a stabilized mixed boundary element method is shown for unilateral frictional contact problems for the Lamé equation. Without stabilization, the inf-sup constant need not be bounded away from zero for natural discretizations, even for fixed h and p. Both a priori and a posteriori error estimates are presented in the case of Tresca friction, for discretizations based on Bernstein or Gauss-Lobatto-Lagrange polynomials as test and trial functions. We also consider an extension of the a posteriori estimate to Coulomb friction. Numerical experiments underline our theoretical results.