If the State does not invest in world-class tourism attractions and facilities now, it will pay the price later, tourism body Fáilte Ireland has warned.
It has sent a 300-page strategy to the Government, seeking major investment in tourism infrastructure all over the State and calling for a number of new attractions.
Fáilte Ireland chief executive Shaun Quinn said the quality of the tourism product was "okay" in coastal areas. "It still needs to be improved. I think you'll only find in Kerry that it is particularly good. And then in the midlands there is very little product and what there is, is probably of a poor enough quality."
He pointed out that between 2001 and 2005, 87 cents in every euro invested went into accommodation. "Which leaves 13 cents for what you might call 'the things to do', the products and services."
There are 12,000 more hotel bedrooms now than there were five years ago and up to 3,000 more are expected in 2007.
Just as the hotel sector had been boosted by tax incentives, Mr Quinn said it was clear that some type of incentive was needed to encourage the development of other facilities.
Gillian Bowler, Fáilte Ireland chairwoman, said there was an need for all-weather attractions.
"We need things that can appeal to a huge spectrum of people ranging from families to what is known as 'the grey market', Ms Bowler said.
She pointed to attractions such as the Eden Project, a green theme park in Cornwall, England. "Unless we invest now, we could end up being like Bray was, one of the premier seaside resorts of its time that Dublin kids used to go out to on their holidays. And then it becomes tired because nobody's invested.
"We also need to invest in some of our visitor attractions that have become a bit old, a bit tired. There are about 20 of those that we need to reinvest in, but we need to find three or more new big ideas."
Ms Bowler was speaking as Fáilte Ireland presented its review of 2006. Overseas visitor numbers reached an all-time high of 7.4 million last year, an increase of 9 per cent on 2005. Tourism revenue increased to €5.9 billion, while employment grew to 249,000. The number of overseas visitors is expected to increase by 5.5 per cent this year.
However, Fáilte Ireland warned that the hotel sector was relying too heavily on Irish tourists. Mr Quinn said 60 per cent of bed nights in hotels outside the Dublin area were coming from the home market.
One in two Irish adults is taking at least one break in this country every year now. "It's been quite a phenomenal rate of growth," he said. "The obvious question is can that be sustained because it is quite remarkable." He would like to see a greater effort on attracting international business.
Fáilte Ireland has a target of attracting 10 million visitors by 2012 but Mr Quinn said meeting this was becoming more challenging because neither the second airport terminal nor the national conference centre had been built yet and an open skies deal with the US still had not been agreed.
Ms Bowler also said she believed Fáilte Ireland's prediction that the Ryder Cup would generate earnings of €130 million would be proved right.