Africa Travel Week
All inclusive holidays

All-inclusive holidays in Africa: Balancing benefits and challenges

It’s no secret that the global trade community holds strong opinions about all-inclusive holidays. However, these offerings have become integral to Africa’s tourism industry, providing travellers with convenience and peace of mind.

The addition of an all-inclusive category in this year’s Responsible Tourism Awards has certainly raised some eyebrows, but ultimately, the positive impact of genuine and practical all-inclusive packages on local economies, communities, and environments is difficult to ignore. One of the key principles of Responsible Tourism is that all travel and tourism can be more responsible if executed intentionally – and that includes all-inclusive.

Breaking the stigma

The criticism surrounding all-inclusive holidays often targets budget-oriented resorts and hotels. However, all-inclusive safaris, luxury spas, and golf packages rarely face similar scrutiny. Much of the negativity seems to stem from social class biases.

Times are changing, and it’s crucial to note that all-inclusive is no longer limited to one-size-fits-all cruise packages, resorts, and hotels. The specifics of what is included in an all-inclusive package can also vary, allowing for quality offerings, greater personalisation, and even a shift to high-end experiences. This is a big plus for destinations across the continent that have the potential to tap into the demand for all-inclusive, which is on a clear uptick and not to be ignored.

According to Expedia Group chief commercial officer Greg Schulze, since 2019, the all-inclusive demand on Expedia and Hotels.com has grown by 70% and the  average daily rate (ADR) by +40%.

Economic impacts

In the past, all-inclusive packages have tended to concentrate spending within a resort or hotel, potentially limiting economic benefits for surrounding communities. Local businesses, such as independent tour operators, artisans, and restaurants, may receive fewer opportunities to engage with tourists, impacting their income and long-term sustainability.

When I worked with Adama Bah in The Gambia on market access for SMMEs, the issue came up a great deal. There, local operators have raised concerns that all-inclusive packages discourage tourists from interacting with local services, thereby reducing their earnings.

Conversely, these resorts can create employment opportunities for local residents, contributing to the economy through job creation and infrastructure development. The key challenge is ensuring that economic benefits are equitably shared and that local businesses are fully integrated into the tourism value chain.

From a responsible tourism perspective, all-inclusive stays in Africa possess the following key advantages:

  1. They allow travellers to manage their expectations of a destination without worrying about overconsuming and exceeding their budget.
  2. They help reduce overtourism pressure on local communities in popular holiday destinations.
  3. Prepaying allows for a more relaxed holiday experience, free from financial concerns during the trip. It also eliminates the uncertainty (and potential friction) around tipping practices.
  4. All-inclusive holidays are ideal for budget-conscious travellers, making African travel accessible to new markets and demographics (those on modest incomes).
  5. To help reduce operating costs, all-inclusive resorts are automatically incentivised to adopt eco-friendly practices to minimise energy costs and waste.

To balance the benefits of all-inclusive offerings with the needs of local communities and environments, African stakeholders should consider community engagement and economic inclusion, while implementing sustainable practices to safeguard natural resources and biodiversity.

By adopting strategies that align with these factors, Africa’s tourism industry can create a more sustainable and inclusive all-inclusive model that benefits both visitors and local populations, ensuring the long-term success and vibrancy of its unique destinations.

Interested in entering the WTM Africa Responsible Tourism awards? Go to our website to submit your entry now!

Africa Travel Week

Africa Travel Week (ATW) focuses on inbound and outbound markets for general leisure tourism, luxury travel, LGBTQ+ travel and the MICE/business travel sector as well as travel technology. Shows include: ILTM Africa, WTM Africa, EQUAL Africa, ibtm AFRICA, Travel Forward, Sports & Events Tourism Exchange and African Tourism Investment Summit.