The oversupply of hotel rooms is a serious concern, David Roche, ceo of www.hotels.com
, says in an interview in today's (Friday) Irish Times.

The Dublin born manager says that Hotels.com’s latest Hotel Price Index, which analyses prices paid by Hotels.com customers in all major cities, found that the price of hotel rooms in Ireland fell by 21 per cent in the year compared to the global average of 15 per cent – one of the steepest falls in western Europe. 'There was a certain amount of market correction at play, but ultimately the prices we’re seeing currently are unsustainable. A three- star hotel just off Stephen’s Green charging €50 a night is just not viable. Something has to happen in the supply area.'

'Customers are being failed in the long term', he says. 'There are a lot of non-viable businesses still in existence, threatening the existence of what would ordinarily be well-run businesses, who cannot compete with hotels who are pricing themselves to mitigate a margin call from banks.'

He suggests the possible introduction of a tourism subsidy, to encourage inbound tourism to the country.

Inbound tourism is vital to Ireland inc, he says. 'Ireland has much better value than it is given credit for, but Ireland’s reputation which has been garnered over the past few years, as an expensive place to come and stay, will take some time to be re-established. Even if hotel prices halve, or food and transport, it will take some years until the external market will take account of this.'