Do you believe all-inclusive hotels are killing the tourism trade in certain resorts, Tenerife included?

It’s a debate which has raged for years, not just here but in many other hot-spots, including Egypt, Turkey and even the Caribbean in times gone by.

You can understand the perception. There are days when you can walk around the streets of Fañabé in the south of the island and see very few people. Yet on the market days of Thursday and Saturday, the place is packed and people often remark that the full-to-the-brim cafes and restaurants must live on their takings on these two days a week.

The visitors certainly seem to be here on Tenerife. Tourism numbers are on the increase, bucking the trend of many other places, and rising at a faster rate than on mainland Spain. So the question remains: “Where is everyone?”

If you blame all-inclusive hotels, you are not alone. The Spanish press has again been reporting on conflicting views on this topic but even the experts cannot agree.

The Association of Entrepreneurs and Business-men of Adeje apparently believes all-inclusive hotels are responsible for denting trade in the municipality. Guests who use all-inclusive hotels have very little spending power, the association believes, and if they never leave the hotel in the first place, their chances of parting with an already limited budget are substantially diminished. 

The association says more than a third of the hotels in the south offer the all-inclusive option but would have described even eight per cent as “alarming”. Other businesses associations in Arona and Adeje have told the Spanish press that they agree. Tourism is rising in Tenerife but it does not seem to be impacting on small to medium-sized businesses.

On the flip side, however, the hotel association Ashotel disagrees. They defend the all-inclusive hotel model and say it adds to the promotion and vitality of Tenerife. It also points out that many of these hotels only offer all-inclusive deals during the low season. The association defends the all-inclusive option, pointing out that guests, particularly families, need to know and control their budget. Those who want a different type of holiday still have plenty of other choices ie. Tenerife offers something for everyone.

Just a few months ago, a report about all-inclusive holidays on the island concluded they are not killing trade and that guests do not spend all their time in the complex. They do spend a lot of money when it comes to going out and about, enjoying excursions, leisure activities and making purchases, over and above the average spend. 

One interesting conclusion of that report was that holiday-makers who go for all-inclusive hotels are usually first-time visitors to Tenerife but those who come back on a regular basis go for half board or self-catering. That would seem to suggest that when here for the first time, they do go out and about, like what they see and decide to have more freedom next time. All-inclusive holidays could therefore be self-regulating.

The concern about all-inclusive holidays is such that some resorts away from the Canary Islands have banned them in order to preserve the local economy. When this happened in part of Turkey, small business owners suggested these guests contributed nothing. That of course is not true. All-inclusive hotels still need to be staffed, cleaned, to bring in provisions, to employ entertainers, to use local food and wine, to use local taxis or coach firms, to clean their pools etc etc, all of which creates jobs and keeps the local economy ticking over. 

Here in Tenerife, new figures suggest that the increase in tourism is beginning to create new jobs. It might be easy to quote all-inclusive hotels for keeping guests in rather than out but isn’t the economy to blame? Families and couples would no doubt love to skip an evening meal or enjoy drinks outside their hotel but if they haven’t got the cash, who can blame them? Perhaps when things pick up, they will do just that in greater numbers. The same goes for holiday-makers who come to Tenerife on other packages, whether half-board or self-catering. Tenerife probably isn’t picking up at a fast rate because tourists still have a limited budget and can’t necessarily eat and drink out every night.

Similarly, it’s going to take time for an increase in tourism to create new jobs. Businesses are understandably wary about recruiting too quickly. Few are making money and if they are making any sort of small profit (or even breaking even) they will want to savour this for a while rather than splashing out.

Two conclusions come to mind. Tenerife will eventually start to feel the benefits of increased visitor numbers but it won’t be an overnight thing. This crisis has caused a lot of damage which needs to be repaired. Secondly, there is a place for all-inclusive hotels, provided the balance is kept right and there are no signs that Tenerife is being regarded solely as an all-inclusive resort. Far from it. The island is being promoted for so many assets, from its cuisine to its countryside, its sporting pursuits to its heritage, that the average visitor does want to get out and about to enjoy them.

What do you think about all-inclusive holidays? If you have a view,  email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or if you have a burning issue to voice.