Todo Incluido Input Costs

I’m going back about 20 years for this story, so adjust the dollar amounts, but I think the principles still apply.

My father-in-law did television work regarding travel. I would do the camera work. We interviewed the general manager of the El President all-inclusive hotel.

He said that the cost per guest for food and drinks was under US$10/day.

My f-i-l asked how that was possible give the price of food ingredients locally.

The manager said that they didn’t buy things locally. Everything was shipped in from Mexico City. He also said that people think they will drink far more alcohol than they actually do after the first two days.

How are local restaurants supposed to be able to compete with that?

There are numerous ways the municipal government could induce the A-I hotels to change their business model if it wanted to via a range of economic incentives. The municipal government's tourist office could also work more seriously to target attracting visitors with higher purchasing power, but it would mean actual hard work by them and less money for all their big parties, big dinners and luxury travelling. And apparently they don't want to give up any of their perks.