Rising hotel costs could deter tourists
Rising hotel prices in the capital threaten to erode the recent gains in overseas tourism and drive future visitors away, an industry analyst has warned.
Aiden Murphy, hotel restructuring consultant for Crowe Horwath accountants, said two reports on rising hotel costs in Dublin and room scarcity could have serious implications for tourism in both the short and long-terms.
A report by the hotel booking website, Hotels.com claimed that hotel prices in Dublin rose by 15pc during the first half of this year to an average of €107 a night. However, the Irish Hotels Federation (IHF) rejected the Hotels.com survey, stating the majority of hotels are sold direct though the hotel and other sources.
A report from the Irish Tourism Industry Confederation stated that up to 30 new hotels need to be built in the Dublin city centre to address what it called the scarcity of hotel rooms in sought-after areas in D1, D2 and D4.
However, a survey from Crowe Horwath found a two-speed recovery in place in the sector in which Dublin hotel rates increased by an average of 5.5pc in 2013 to an average rate nightly rate of €90.73. Outside the capital prices rose by 2.5pc to an average nightly rate of €72.49.