A MAJOR British tour operator is axing traditional package holidays and will only sell all-inclusive vacations to Cyprus from next year in a move which could have wide-ranging implications for local traders.
First Choice holidays announced that as of May 2012, all holidays booked to the island will include flights, transfers, hotel accommodation and three meals a day, plus unlimited local drinks for a single one-off fee.
The news comes as a bitter blow to local business owners who claim that such deals are already killing their trade and ripping the heart from coastal resorts because tourists rarely venture out of their hotel complexes.
This is not a good decision, says Lakis Avraamides, director of Ayia Napa-Protaras Regional Tourism Board. Its a trend which some people seem to want, but it will definitely affect the market. It will be a set back for all destinations.
Restaurant and bar owners in Paphos, Protaras and Ayia Napa have continuously complained that all-inclusive tourists add absolutely nothing to the local economy, whilst others fear that more travel companies, including German and Russian tour operators may follow suit.
Johan Lundgren, the UK and Ireland managing director of First Choice’s parent company TUI thinks that the demand for all-inclusive holidays will continue to grow.
All-inclusive is becoming the holiday of choice for many British consumers, offering them great value for money. People can leave their wallets at home and relax – they won’t have to worry about spending money when they’re abroad, he added.
CTO Acting Director General Lefkos Phylactides told the Sunday Mail that the announcement is not encouraging for the local economy, but acknowledged that market trends are behind the decision.
We want people to wander from their hotels and discover what Cyprus has to offer, but we do realise that there is a recession and the austerity measure announced by the British government means that holiday makers are more price conscious, so we do understand that the all-inclusive gives a feeling of economic security to visitors.
At the end of the day, this is a business decision, he added.
Tourism officials across Europe have complained that all inclusive deals have resulted in local bars, restaurants and shops closing, thus turning some resorts into ghost towns its a charge denied by Christian Cull, the TUI communications director.
It is a myth that people do not go out of the hotel just because theyre on an all-inclusive holiday. As a holiday company we encourage people to go on local excursions and explore all that the destination has to offer. We are doing a lot of work in this area to increase communications with customers whilst they are on holiday, encouraging them to use local services.
First Choice already offers cut-priced holidays to Cyprus starting from Ł213, with existing all inclusive breaks being advertised from as little Ł561 per person.
As well as flights and hotel, customers are offered a buffet breakfast, lunch and dinner plus hot snacks served at in the mornings then again at mid-afternoon, with cold snacks from 10am-11pm and free ice cream until 6pm. Local soft drinks, draught beer, local spirits, wine, tea and coffee are also laid on from 10am-midnight.
I hope this does not spread to other areas, because not all countries like the all inclusive, there are some markets that dont like it there are some who like the just breakfast or half board packages, added Avraamides.
All-inclusive deals were popularised by the rise of the package holiday in the 1970s but waned after becoming associated with resorts in Spain, but now First Choice says demand has grown by 32 per cent in five years, adding that already, 65 per cent of its holidays are of this type.
One Ayia Napa pub owner said: All-inclusive holidays are great if you don’t actually want to see any of Cyprus or spend any money here.
