Self catering operators had a "disastrous" year outside the peak summer season, the Oireachtas Joint Committee on Tourism heard today.
John O'Connell, chairman of the Irish Self Catering Federation, said self catering units in traditional holiday destinations fared well in June, July and August, but holiday homes located near "yet another new hotel development" suffered, despite offering very low prices.
He said the oversupply of hotels and self catering units was causing major problems for the sector. He also criticised the lack of support from banks for tourism enterprises and said "there appears to be a general policy among the main banks that tourism-related businesses are not worth supporting".
B&B Ireland's Helena Healy said the oversupply of hotel beds was having a grave effect on the B&B sector and had driven the B&B rate down by 15-25 per cent over the last two years.
The organisation, which represents 1,100 B&B members, also warned against the introduction of commercial rates for B&Bs and said it would result in the closure of a significant number of properties.
Both organisations highlighted the estimated 15,000 unapproved self catering units, and B&Bs around the country and said they were benefiting from the work done to promote the sector while making no contribution to it.
Committee chairman Deputy Tom Kitt said the committee would support the submissions made by the organisations as best it could.
