The
hotel sector is now insolvent and one quarter of all rooms across the country needs to be closed down, according to a new report.
The study, commissioned by the Irish
Hotels Federation, claims that there is an over supply of 15,000 rooms nationally.
The study says that otherwise viable and established
hotels are being dragged under by newer developments being run at below cost.
The report, by economist Peter Bacon, recommends that the Government introduce tax changes in the Budget to allow
hotel investors to close down without being exposed to clawbacks by the Revenue Commissioners.
The IHF says the country currently has 925
hotels with a total of 60,729 rooms as well as 337 guest-houses with 4,070 rooms.
'The report calls for the urgent active participation of the stakeholders involved including the banks and financial institutions, the Government, the
tourism bodies and the
hotel sector itself to seek effective solutions,' commented Matthew Ryan, President of the Irish
Hotels Federation.
Tourism is the country's largest indigenous industry, employing over 200,000 people nationwide. It made a direct contribution of EUR6.3 billion to the Irish economy in 2008, which represents 4% of overall GNP.
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