Tourism industry is one of the largest industries in world. It is particularly important for underdeveloped and developing countries. It creates employment opportunities, foreign currency, development opportunities etc. All-inclusive package tours (AIPT) are the fastest growing segment of mass tourism, and have positive and negative impacts for tourists, tours operators, accomodation establishments, local businesses and host communities. In this paper, firstly; all-Inclusive package tour concept is explained. The increasing demand and reasons for choosing AIPT is given by examples. Secondly; the negative Impacts of the all-inclusive system for customers (tourists), accomodation establishments, local businesses are emphasized by examples from some host countries. And lastly; as a case study, impacts of all-inclusive system to Turkish tourism and local businesses in Turkish Riviera is examined through review of the literature.