The Jurys Hotel Group has warned that proposals to introduce a "tourist tax" could have serious implications for the industry.

The group's annual general meeting heard that tourist numbers "will dwindle", if a hotel tax is levied on visitors. The group's chairman, Mr Walter Beatty, was reacting to a suggestion from Dublin Corporation that a £3 overnight tax be imposed on visitors to raise funds to improve the city.

"The reason given for this is that the money would go towards cleaning the city streets," he said. "Of course, our streets should be clean, but why should visitors be expected to pay for clean streets which should be our privilege to provide," said Mr Beatty. "Jurys Hotel, Ballsbridge alone pays a direct tax to Dublin Corporation in rates of up to £450,000 a year. Why should people staying with us be expected to top this up?" asked Mr Beatty.

Chief exective, Mr Peter Malone, said any taxes on visitors had the potential to "kill the golden goose". He said an alternative way to develop tourism is for the Government to increase its grant to Bord Failte.

"I think Bord Failte should be the vehicle, although its cost base is too high". He added that if it can reduce its cost base, there would be more finance available for tourism marketing.

Mr Malone refused to comment on a separate proposal from Minister for Tourism and Sport, Mr McDaid, that all visitors pay a £3 tax. However, he said taxing visitors is not the "best way to go".

Speaking about the future of the group, Mr Malone said Jurys is actively looking to expand into the continental European market, where it currently has no presence.

"It is a very tough market, but we are looking for a cluster of some hotels situated in one of the main European cities," he said. He added that Poland and Hungary were the most likely markets Jurys would enter first. He said the group could contemplate spending up to £50 million on a suitable acquisition in Europe.

"We look at more than 200 hotels every year so we are very serious about making acquisitions," said Mr Malone. However, he said the company will still be paying close attention to commercial possibilities in Britain.

Mr Beatty said that the group has seen no sign of recession in Britain and all its hotels there are reporting increased business.