The opening of the first totally “All-Inclusive” resort in Jamaica, Couples Ocho Rios in January 1978, represented the birth of a new era in the local tourist industry - the era of the “All-Inclusive”. Providing all the visitor’s needs in one upfront pre-paid price, this new initiative significantly improved and enhanced the visitor-experience, and resulted in benefits filtering into the wider community.

The explosion in growth of the “All-Inclusive” has prompted vigourous debate about the impact of this category on the tourist industry, and indeed, on the Jamaican economy.

There are two “schools of thought”:

(1) These properties do improve the economy with far reaching benefits.

(2) The impact is less than that of traditional hotels.

This paper will examine the extent to which “All-Inclusive” properties provide economic benefits to the local communities, and the economy in general, as well as the linkages forged between the various sectors of the economy. Such linkages include agriculture, transportation and manufacturing, to name a few.

The impact of the “All-Inclusive” on the key areas of labour, employee earnings, tax revenue as well as their impact on the ancillary sector (independent restaurants, bars, taxi drivers, tour operators) is to be explored.

In order to gauge the impact of the “All-Inclusive”, it will be necessary to compare the contribution made to the economy by other types of properties: European Plan (EP) hotels; or hotels which offer an American Plan, Modified American Plan or a combination of plans.