Unexpected holiday cancellation and unsuitable replacement and no rights offered to UK Consumer

We had our travel agent on the phone they have received a letter from [TOUR OPERATOR] saying our holiday is cancelled and they have re booked to another island Meeru.This island is not suitable to us it is not similar in quality or size to our booking but will not offer anything else.They will not answer our letter direct .   We asked about another island would only offer an inferior accomodation but want more money we have offered to go into a JWV and will go half with the cost but they will not agree.   can you advise our position now 

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