BARS, restaurants, shops and other sectors which depend on tourism in the popular resort of Cala Millor, in the eastern part of the island, say that trade is down by 30 to 40 percent and they blame it all on the all inclusive' packages.
But the hotels in the area are full, thanks to these deals in which the tourist pays for everything, including food, drink, snacks and entertainment, before leaving their home.
But the complementary sector has been hit hard and although they cannot give precise figures as we don't calculate them until the end of the season, most of the estimates are that the drop is between 30 and 40 percent.
This is easy to see on a visit to the resort. The beaches and promenades are full of tourists, but the terraces of bars and restaurants, souvenir and other shops, grocer's and mini-markets are empty.
The hotels, on the other hand are between 75 and 100 percent full, depending on their category.
One shop assistant said that in past seasons, one person was not enough to attend to demand in the shop. Now, many of the people who enter think that the objects they select are also included in the all inclusive' deal.
The complementary sector also complains that the season is growing shorter: It used to start in June, this year it started on July 20 and it will probably end in August said one souvenir shop owner.
But while Cala Millor and other resorts - are suffering from the effect of the all inclusive' holidays, they will not be going away. For although the German tour operator TUI has decided to do away with some of them in Majorca for its 2005 brochure, alleging that the quality is low and there have been many complaints, it will replace them with others.
A spokeswoman said that the all inclusive' was something the market demanded and tour operators and hoteliers had to fit in with demands. But, following complaints from customers about two percent of our all inclusive' offer will be dropped in Majorca for next summer. She added that they would probably be replaced by other establishments as that was the law of the marketplace. She said that there would also be a demand for specialised hotels, rather than those offering traditional services. TUI is currently negotiating an all inclusive' deal with a five star hotel.