On those small islands, don’t the tourists experience the local culture on their own? That wouldn’t be the “all-inclusive” situation where most tourists don’t leave hotel grounds.
Most Europeans won't be able to afford to rent a car, so they just stay at the resort as the packages include bus transfer from the airport.
The hotels do have tours you can go on, but usually the all-inclusive hotel is the way to go for normal over-taxed Euro folks.
Why this d-bag wants to go after them can be only explained by political reasons. It's a slim market IMO, as the tour companies in UK and Euro-mainland likely get a percentage of the hotel take, as the low travel costs are attractive to pull customers in and the profit is probably made on drinks, incidentals, etc.