Hotels 'facing insolvency'

An economic report on Ireland's hotel industry is warning that the entire sector faces complete insolvency if urgent action is not taken.

The report, which was commissioned by the Irish Hotels Federation, was carried out by economist Peter Bacon.

He recommends the closure of 15,000 hotel rooms around the country to help the struggling sector survive.

He also says the Government needs to introduce tax changes to allow unviable hotels exit the sector without being penalised.

President of the IHF Mathew Ryan agreed the industry would have to be restructured if it were to survive the economic crisis.