A survey has found 60 per cent of tourism businesses believe prospects for 2002 in the industry are no better than last year.
According to the CERT 2001 Business and Employment Survey, business activity in the sector declined by between 3 and 5 per cent last year following the foot-and-mouth crisis and the September 11th attacks.
The general downturn in market demand after September 11th and the increasing cost of utilities and labour are cited as factors likely to affect the industry over the next 12 months.
However, most employers in the industry - 82 per cent - expect employment to be at least kept at 2001 levels, and only 10 per cent of hotel operators are expecting a decline in staffing. The border areas, the Midlands and West areas most likely to experience job losses, according to the survey.
"It would be unrealistic to expect the industry to recover fully in 2002 after such a difficult time last year," CERT chairman Mr Eamonn McKeon said.
"However Irish tourism has proven to be a resilient industry in the past and we can expect to recover some lost ground in the coming year".
The survey also indicated considerable concern was expressed at the value-for-money aspect of tourism.