The rapid increase in all-inclusive holiday packages is causing concern in Menorca, as – according to the island’s Tourist Accommodation Association (Viturme) – the spread of this model seems to have significant impacts on the local economy and especially in the catering sector.
In a statement on Monday, the association pointed out that the only segment of the tourism market that has shown growth in recent years is hotels offering complete holiday packages. On the contrary, licensed short-term rentals – which leave room for tourists with greater interaction with the local market – have remained stagnant since 2022.
“Which model is more beneficial for Menorca?”
Viturme openly poses the question: “Which model is more attractive and beneficial for the island? The organized all-inclusive package that covers all the needs within the hotel, or the one that simply offers accommodation, giving guests the opportunity to spend in the local market?
The answer, according to the link, is clear. The second model helps support local businesses – from catering and retail to leisure activities – and strengthens the island’s circular economy.
“We are in a critical period for the local economy and, yet, the tourism model that has the least positive impact is the one that is expanding the most,” notes Viturme, adding meaningfully: “We can live from tourism without living for tourism. After all, all-inclusive does not mean that everything is included.”
Hospitality hit – Similar picture in Mallorca
The adverse impact of the all-inclusive model is particularly felt in the hospitality sector, which acts as a “barometer” for commercial activity in the summer months. In the fourth week of July – a period traditionally considered the peak of the tourist season – many entrepreneurs in the hospitality sector describe the movement as “slow”, “worse than last year” and in some cases “catastrophic”.
This picture is not isolated to Menorca. Similar problems are also recorded in Mallorca, where the decline in visitors’ purchasing power is strongly affecting the non-hotel sectors.
The contradiction: all-inclusive more popular than ever
Despite the reservations of many tourism professionals, all-inclusive seems to be steadily gaining ground. According to travel website TravelSupermarket, Mallorca is ranked eighth this year on the list of the cheapest all-inclusive destinations in Europe. Although many tourism industry professionals believe that the importance of this model is decreasing and that fewer hotels offer it, the data shows the opposite: all-inclusive packages remain extremely popular, mainly due to price and convenience.
At the top of the list are tourist destinations such as Alanya (Turkey), Hammamet and Sousse (Tunisia), Marrakech (Morocco), Costa Dorada (Spain) and the Dalaman region (Turkey), followed by Mallorca, Bodrum and the Costa Blanca.
As the platform points out: “All-inclusive offers in Mallorca are excellent value for money and the island offers consistently good weather and many options for relaxing by the pool.”
Concerns about the sustainability of the model
The conflict between the economic convenience of all-inclusive packages and the need to support local entrepreneurship is creating intense concern in the Balearic Islands. The voices calling for a more balanced tourism policy – one that is not based exclusively on organized packages – are increasing.
For Menorca, the stakes are clear: how can it maintain its share of the tourism market, without undermining the sustainability of local communities and the much-desired dispersion of income? The question remains open, but the answer seems to require changes in the development model.
