Growth and Impacts of All-Inclusive Holiday Packages: Echoes from the Industry

Abstract

All-inclusive (AI) holiday packages have become a popular travel choice, particularly in the sun-soaked destinations of the Mediterranean and the Caribbean. Despite the benefits the AI is assumed to offer to key stakeholders, caution has been urged over the increase in AI offerings due to the negative impacts they impair on destinations. This paper aims to investigate supply-side perceptions of the growth and impacts of the AI on Cyprus’ tourism development. Drawing from semi-structured interviews with industry stakeholders, findings reveal that the AI is determined by an interplay of demand and supply conditions while its growth is moderated by contextual factors pertaining to coastal destinations’ development stage. With a range of negative impacts being identified as detrimental to the tourism development of Mediterranean destinations, the study proposes a conceptual framework outlining the determinants, influencers and outcomes of the AI trend.