IRELAND is the least expensive destination for hotel rooms in western Europe with prices per room now averaging €79 a night, according to a major international survey.
Hotel room costs continue to drop across the country, but the fall in accommodation prices has begun to slow down compared with when the recession was in full swing.
Kilkenny is now the most expensive destination for hotels in Ireland, the hotels.com survey found.
The survey of major destinations worldwide included looking at around 91,500 properties in over 15,750 locations from around the globe.
Irish hotel prices fell 4% in the first six months of 2010, it found. This compared with a dramatic 21% fall last year in room costs compared with the previous year.
But globally prices rose overall this year by a small 2% in the same half-year period.
The current average room rate in Ireland now stands at €79 per night compared with €82 in the same period last year.
While being the cheapest hotel destination in western Europe, Ireland is also the fourth least expensive for rooms in the eurozone, behind the Czech Republic (€76), Poland (€74) and Hungary (€70).
Areas in Ireland that saw sharp declines in prices included Killarney where the tourist hot spot saw average costs fall by 16% to €93 for rooms.
Sligo and the Castlebar area were the only two destinations where room rates had a slight increase of 5% and 4% respectively.
Commenting on the hotels.com survey, the Irish Hotels Federation’s president Paul Gallagher said the research reflected the falling rates on the ground here.
But the low prices could not last, he warned.
“The worry for us as an industry is that these are prices we find are not sustainable. It’s difficult to make any profit and unless there is movement on rates in a more positive direction, we will find it difficult to keep our hotels in good working order.”
Internationally, the survey found that Iceland’s hotel prices suffered the greatest decline in Europe with room costs dropping 20% year-on-year.
Norway saw the largest price increase with hotel prices rising by 11% to an average €123 a night.
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