There is an urgent need for more than 50 new hotels in Dublin, according to the Irish Tourist Industry Confederation.
Chief executive Eoghan O’Mara Walsh said on Wednesday that 2016 was a record year for the tourism industry, generating more than €8 billion in revenue.
Tourism is now the largest indigenous employer with 230,000 people involved in the industry, he told RTÉ's Morning Ireland.
The Wild Atlantic Way was a huge success, he said. “It shows that if you have the product, good marketing and a competitive sector, it can work.”
Challenges ahead
Mr O’Mara Walsh warned that the industry is facing many challenges in 2017 such as the reduced number of hotel beds in Dublin – with demand up 33 per cent and the number of beds down six per cent.
“There is a need for at least 50 more hotels in Dublin. There is a significant number in the pipeline but it takes two to three years to construct a hotel.
“We anticipate a three to five per cent increase in volume of tourists in 2017. This will put more pressure on the sector. It is a very competitive sector.”
Brexit is also a threat, he added with the UK market expected to soften as a result.