Pricing is only one of a number of factors adversely affecting the competitiveness of the Irish tourist market, according to a report published today by the Irish Tourist Industry confederation.
The report, prepared by the CHL Consulting, identifies a number of key issues affecting the sector's competitiveness in Ireland at what it describes as a critical point in the industry's development path.
Michael Counahan, managing director of CHL, believes that, while the Republic has become less price-competitive in recent years, it has not yet priced itself out of the global tourist market.
The Republic will never become a low cost destination again, according to Mr Counahan, and it is time now to focus on the quality of the product and tourist experience we are offering, rather than price.
Among the report's recommendations is the establishment of a Tourism Product and Business Innovation Fund, which would facilitate innovation and research and development in the area of tourism. It argues that at least €210 million should be allocated to tourist product development under the National Development Plan 2007-2013.
Regional tourism has suffered a decline in competitiveness in current market climates, and the report identifies a growing imbalance in the distribution of tourism demand. City breaks are gaining in popularity, and there has been an overall decline in the average length of stay of visitors to Ireland.
The Irish Hotels Federation welcomed the report and called on the industry itself to play its part.
Chief executive John Power said a number of recommendations were "particularly pertinent" to sustaining and growing the sector. He drew attention to calls for improved training.
Mr Power also highlighted the report's call for a reform of VAT rules on business travel accommodation which, he said, were currently putting Ireland at a competitive disadvantage to their European peers.
