I have worked in Limassol in a hotel which offered all terms of occupancy but now there are some which are "All Inclusive" only. I believe they are very bad for the economy of the island. So many tavernas are closing because the guests in resort all just eat in the hotel, many people just do not leave hotel at all even to go to a bar or club. Yes the guests very often get a good financial deal but that money all goes to the country which booked the holiday. The hotels get paid but gradually the bars and tavernas get fewer and fewer customers and have to close. At one time visitors to the island could walk along the road and here Cypriot music, and see local dancing in many tavernas and really felt they were on holiday in Cyprus. Now if all they see is the hotel they could be anywhere in Europe.
The local coach tours are also affected as in some cases the excursions are also included, where they are not the guests wont leave their included drinks. Wake up CTO before it is too late and you will have no where to eat yourselves in your own country!.