Why All-Inclusive Resorts Don't Exist in the US

Walk into a resort in Cancún, Jamaica, or the Dominican Republic, and you’ll find everything included: meals, drinks, snacks, activities, even tips. You pay one price, and you’re set. Now, imagine that same resort just across the border in Florida or California. It doesn’t exist. Not because of lack of demand, but because of how American hotels are built, regulated, and paid for.

The US doesn’t ban all-inclusive resorts-it just doesn’t let them work the same way

No law says you can’t open an all-inclusive resort in the United States. But if you tried, you’d quickly hit a wall. The biggest problem isn’t tourism policy or zoning-it’s alcohol sales. In most US states, liquor licenses are tied to specific locations and types of service. A hotel can serve alcohol in its restaurant or bar, but it can’t legally offer unlimited drinks as part of a flat package without violating state alcohol control laws.

States like Florida, Nevada, and California have strict separation between lodging and alcohol distribution. You can’t just hand out unlimited cocktails at a resort poolside without a separate on-premise liquor license for every drinking area-and even then, most states cap how much alcohol can be served per person per day. In Mexico or the Caribbean, resorts operate under national or regional licenses that treat the entire property as one alcohol-serving unit. In the US, that model collapses under local regulations.

Union labor rules make all-inclusive pricing nearly impossible

US hotels are heavily unionized, especially in states with large resort markets like Nevada, Florida, and Hawaii. Servers, bartenders, housekeepers, and activity staff are paid hourly wages with mandatory overtime. Tips are legally required to supplement their income. An all-inclusive model that bundles everything into one price would mean eliminating tips-or drastically reducing them-which violates labor norms and union contracts.

Imagine a guest paying $500 a night for everything, including drinks and meals. The hotel would have to pay staff the same wage whether they serve 10 guests or 100. That’s not sustainable under current wage structures. In the Caribbean, labor costs are lower, tipping is often included in the rate, and unions are less powerful. In the US, that’s not an option.

Guest expectations are different

American travelers expect choice, not convenience. They want to pick their restaurant, order à la carte, decide when to eat, and control their spending. All-inclusive resorts, especially in the Caribbean, are designed for guests who want to relax without thinking about costs. Most US vacationers don’t want that. They want to explore local restaurants, try regional cuisine, and feel like they’re experiencing the destination-not just staying inside a resort bubble.

Even luxury resorts in the US like The Boulders in Arizona or The Greenbrier in West Virginia offer premium packages, but they still charge separately for dining, spa services, and drinks. Guests expect to pay for extras. That’s part of the American vacation culture.

Real estate and development costs are too high

Building a resort that includes unlimited food, drinks, and activities requires massive infrastructure. You need multiple kitchens, large-scale food storage, extensive beverage inventory, and staff for every possible activity. In the US, land costs-especially near beaches or mountains-are astronomical. In the Dominican Republic, land is cheaper, labor is less expensive, and the government often subsidizes resort development to boost tourism.

US developers can’t justify spending $300 million to build a resort that might only break even because guests won’t pay enough to cover the cost of unlimited lobster dinners and open bars. The math doesn’t work. Even high-end resorts like Four Seasons or Waldorf Astoria can’t absorb those costs without alienating their core customers who expect premium, à la carte service.

What about all-inclusive resorts that claim to be in the US?

You’ll see ads for "all-inclusive resorts in Florida" or "all-inclusive packages in Las Vegas." But these aren’t true all-inclusives. They’re marketing tricks. What they usually mean is: “We include breakfast, one dinner, and two cocktails per day.” Or “Your room rate includes access to the pool and spa.” That’s not all-inclusive. That’s a nice perk.

Some resorts, like those in the Virgin Islands (a US territory), come closer. But even there, drink limits apply. You won’t find unlimited premium rum or 24/7 room service with no extra charge. The US mainland has no resort that truly matches the Caribbean model.

Why the Caribbean gets it right

Caribbean countries have built their economies around tourism. They streamlined regulations decades ago to attract foreign investment. Resorts there are treated as self-contained economies. The government issues one license for the entire property. Labor laws are structured around fixed wages with tips included. Land is affordable. And tourists expect it. The model works because the entire system is designed for it.

In the US, every piece of the puzzle-alcohol laws, labor rules, land costs, cultural expectations-is built for something else. Trying to force an all-inclusive model into that system would require rewriting state laws, breaking union agreements, and changing decades of consumer behavior. No one’s willing to do that.

Is there any hope for change?

Maybe. Some boutique resorts in Hawaii and Florida are experimenting with “premium inclusive” packages that bundle select meals and drinks. But they’re still limited. One resort in Florida offers a $1,200-per-night package that includes three meals, two cocktails, and a daily spa credit. That’s not all-inclusive-it’s luxury with extras.

Real change would require federal or state-level policy shifts: relaxing alcohol licensing, allowing tip pooling as part of fixed pricing, and rethinking how lodging taxes are applied. None of that is on the horizon. The US hospitality industry is too fragmented, too regulated, and too tied to tradition to adopt the model.

What can US travelers do instead?

If you want the all-inclusive experience, you’ll still need to fly south. But you can get close at home. Book a resort with a high-end dining plan. Look for properties that include breakfast and dinner in the rate. Choose places with unlimited non-alcoholic drinks, like some ski resorts or wellness retreats. Many luxury hotels now offer “resort credits” you can use toward food, drinks, or activities-almost like a mini all-inclusive, but with limits.

Or, plan a trip to the Caribbean or Mexico. You’ll pay less than you think. A week at an all-inclusive resort in Punta Cana often costs less than a weekend at a luxury hotel in Miami-with better food, better service, and no hidden fees.

It’s not about banning-it’s about mismatched systems

The US doesn’t outlaw all-inclusive resorts. It just doesn’t have the legal, economic, or cultural infrastructure to support them. It’s not a conspiracy. It’s not a policy failure. It’s just how things are built here. The system works fine for what it was designed for: choice, flexibility, and individual spending.

But if you want to wake up, walk outside, and have everything handed to you without checking a bill? You’ll need to cross a border. And that’s not a bad thing. Sometimes, the best way to appreciate what you have is to see what’s missing.