i can only agree with this, as i have seen it for myself over the years. malgrat is beginning to suffer the same way, with the pubs, especially in "bar street" seeing a serious decline in trade.
there have been various threads on the subject of how AI affects an area in the general section, but this is just further proof of the effects.
i always used to like calella as it was not as full on as lloret, but was busier at night with more options for eating/drinking/entertainment than all the other resorts (except lloret)up the coast. however, this has changed over the last few years and even places like papas bar, alcatraz and the white horse are not as busy as they were.in fact there is probably as much going on in malgrat now as there is in calella, but i don't think that will last as malgrat is not really a winter resort where calella did used to attract trade all year round.
even lloret is suffering to some extent because of the AI (as well as the lousy exchange rate and the credit crunch), particularly in the winter where more pubs/clubs are closing because there is not enough trade to warrant staying open. only about 3 years ago you could go out in the winter and there were plenty of bars open during the week as well as weekends, but now a lot are only open at weekends, if at all.
i think it is sad to see calella go down as it has, and fear that unless the local government do something drastic to rejuvinate the area then the decline will continue.
another reason that the pubs/restaurants suffer more than most is that they have put up prices to try and cover their overheads, and in most brit/entertainment type bars it is dearer to drink in spain than in the uk and so the brits feel they are being ripped off and so don't use these places.when i was in lloret and malgrat earlier this year, most pubs were still charging the same as last year, and some had actually reduced their prices -ok only by a little but it helps.
i stay AI when i go with friends to the area 2 or 3 times a year, as they are happy to stay in the hotel most nights, but i find most of the AI hotels lacking any suitable atmosphere so i still go out to the pubs and just leave them to it.
when i go on my own to lloret i go to see a friend so tend to eat out most nights and drink in places the locals go rather than the tourist bars.
one thing i did notice last time i was in malgrat, we were chatting to some brits at the hotel -all on AI- and talking about prices etc and of 12 of us round the table only 4 people, 1 couple and one of my friends and i,had brought/drawn out the ATM more than 50 euros ( )to last them the whole week. the general concensus was that
they had paid already and why should they pay any more
or
they could afford to come 3 times a year by not spending money in the resort
or
they were only able to do this because they were on a baccy run

so although there were plenty of people around, very few had actually any intention of spending anything while they were there.i suspect this is probably true of most people who are going to the area on AI.

My first holiday to spain was Llloret in 1982 when i was 19. It was amazingly cheap compared to the uk. A bottle of beer was a fraction of the price it would be in the UK infact you could probaly buy 10 for the price of 1 in the uk, if you ordered ashort you got a tall glass full! The bars were heaving and the atmosphere fantastic.

Where did it all go wrong? I visit spain twice a year and whilst there are still a few places that are marginally cheaper than the UK many are not and some places are a real rip off and brits want value for money.

The exchange rate - euro to pound isnt that far of "like for like" these days - where as i clearly recall 1.65E to the pound a few years ago, now your now lucky if you get 1.08E

I never go AI, to me it completely defeats the object of traveling abroad and experienceing the local restaurants however I can see why people do it.

I was in Pineda last year, staying at the Taurus Park hotel. Just outside is one of my favourite places to visit, Pepes restaurant & Bar. Back in the 90's this was packed to the rafters evey night. The exchange rate was around 200 - 220 pesatas to the pound and a pint of beer cost 180pts. It was a cheap night out with a great atmosphere with just the best hosts. Last year was my first visit in a few years and I was shocked at how empty the place was. I saw the problem straight away. The hotel was cheaper to buy a pint plus the guests got the evening entertainment too. We had lunch there and for the four of us it cost almost £60 (2 adults and 2 kids) and although the exchange rate didn't help (1.14e to the pound at the time) many brits do not find that value for money.

This year for the first time, the Taurus Park is offering an All Inclusive option so I could see Pepes going under too.

Last time I was there was some 20 years ago I was passing through from Mallorca where a friend of mine had and still has a business. Calella was OK then, but not like it was whwn I worked in the Nags Head and Talk of the Town pubs in 1977, 78 and 81. Don't think I would go for a holiday, just to pass through again and see if there's some oldies still there apart from Johnny Madrid.

Have things improved now in Calella? I have just got back from there and found it lively, the clubs were all packed and the brit bars were busier. It was certainly busier at night than Salou was in May. Most brits I got talking to in the bars were staying AI but found the hotels too dire to spend all evening in.

While AI does affect trade in the bars, resorts have to offer it to remain competitive, if it is what if the public want they have to offer it. Personally I like to eat in different places etc so the idea of AI has never really appealed to me.

I never go mad drinking when in Spain but here is what I found:-

The Alctraritz? - Lively, I ordered a pint and Johnny Madrid asked me what part of Manchester I was from, not sure if that is good or bad!. Always had bingo or sports on when I went in so didn't spend that much time there.

The Beach Boys Club - probably my favourite bar, lively and Brian was friendly without being too full on. Had a lot of classic rock playing which I liked.

The White Horse - a good little boozer, perhaps favoured by the younger crowd. Very nice looking Spanish bar maid!!.

Papas - Only went in twice, looked like the place really needed a good refurb.

Drink prices were cheap, 2.50 euro a pint for most of the brit bars, cheapest I got was in a dutch bar when they had an accidental happy hour, got charged 3.50 euro then handed me two pints, the bar man explained it was happy hour buy one get one free!

I personally found Calella to be much cheaper than the UK and cheaper than Salou too. I wonder if they have reduced the prices since this thread was made?

Many thanks for the update NoAir