Ireland-West Tourism says the Galway drinks price freeze has been highly successful in spite of a breach identified by the Director of Consumer Affairs in two city hotels this week.
More than 20 pubs and hotels participated in the "Galway price promise" which involves a freeze on all drinks prices from July until the end of the year.
The initiative was spearheaded by Ireland-West Tourism and the Vintners' Federation of Ireland (VFI), and began before the opening of the Galway Arts Festival this month.
Director of Consumer Affairs Carmel Foley intends to prosecute two "well-known hotels" in Galway for charging more than the displayed prices for drinks.
Inspectors from Ms Foley's office inspected 20 licensed premises at the start of the Galway Races week to check compliance with price display regulations.
"In one premises the price charged at the till for a pint of Budweiser was 30c dearer than the price stated on the comprehensive price list," Ms Foley said.
"In a second premises, the prices at the till for the full range of whiskeys available were up to 20c more than on the price list.
"Consumers have a right to know the exact price that they will be charged and it is an offence for publicans to charge more than the price displayed on the prescribed lists."
John Concannon, Ireland-West Tourism's chief executive officer, said the licensed premises which had signed up to the price freeze had displayed their participation prominently to customers.
"It has been a really positive move and our own survey shows that the prices are holding. This is a first for Galway but also nationwide and it is proving to be very popular."
According to the tourism body,attendance at Galway Races this year was up 20 per cent on last year by yesterday, and the festival still has several days to run.
Ireland-West Tourism has been running a nationwide advertising campaign to attract people to the west, and believes this may be responsible for a 10 per cent increase in attendance at this year's arts festival, and larger numbers attending events such as the Roundstone Arts Week a month ago.
