The Irish Hotels Federation (IHF) has welcomed the publication today of an Irish Tourist Industry Confederation (ITIC) report that calls for a national strategy to rescue the industry.
The report, which was officially published this morning shows that Ireland is now the most expensive country in the euro zone for foreign visitors.
The report concludes that the problem is one of national competitiveness and the Government is required to address the recent decline in foreign tourism.
The report says that since 1996, inflation in tourism-related market segments has been faster than the national average. It also says 23 per cent of foreign visitors surveyed in 2001 felt there was scope for improvement in the value for money offered in Ireland, and that €1.6 billion is generated by foreign tourism annually.
"The IHF are in full agreement with the reports findings when it recognises that it is vital not only to tourism enterprises, but to the national economy that a course be charted that will return the sector to a sustained growth path in the years ahead," IHF president Mr Jim Murphy said.
"In our pre-Budget submission presented to Minister for Finance, Charlie McCreevy TD last week, we are seeking immediate remedial measures to assist owners of hotels and guesthouses and other hotel industries in Ireland.
"Immediate measures such as a reduction in VAT on hotels and guesthouses to less then 10 per cent would significantly bolster efforts by the industry to meet rising costs".
According to the IHF, out of every tourist-euro spent in Ireland, 47 cents are taken in taxes by the Government.