Fáilte Ireland has called for the scrapping of tax reliefs for hotel-building, saying any shortage in the supply of accommodation was now gone.
Gillian Bowler, chairwoman of the tourism agency, said hotel rooms had reached "a sufficient level", adding that the investment focus should now shift towards attractions and activities for tourists.
Speaking at Fáilte Ireland's annual conference in Dublin Castle yesterday, Ms Bowler said tax breaks for hotel developers had been useful in their time. "But they are past their sell-by date. I can't see any strong case to keep them."
Minister for Arts, Sport and Tourism John O'Donoghue, who attended the conference, refused to be drawn on the issue, saying it was a matter for the Minister for Finance. However, he pointed out that most of the €2.2 billion invested in tourism between 2000 and 2004 had been in accommodation.
"In my opinion, not enough has been invested to date in some other elements of the experience, such as special attractions and visitor activities," the Minister said. It is understood the Government will curtail the relief scheme in next month's Budget, although an extension is expected to be granted to projects currently in train.
Calls were also heard at the conference for an end to in-fighting in the tourism industry, and for all stakeholders to get behind a single rebranding campaign.
Ms Bowler said businesses who were short-sighted and cared only about their own "patch" would probably fail in the long-run.
"They may be alright this year but they won't be alright in five or 10 years' time."
George Hickton, chief executive of the New Zealand Tourism Board, spoke of his country's success in rebranding itself as a "landscape destination". The initiative had been opposed by some city traders but they were won over by a 50 per cent growth in tourism over the past five years.
However, Ms Bowler said: "I don't like the idea of playing up to old stereotypes. The last thing I would want to do is to show pictures of John Hinde postcards because that doesn't reflect reality."
