Hoteliers have called on the Government to provide access to “seasonal funding” to help them trade through what is expected to be a challenging next 18 months.
In its pre-budget submission the Irish Hotels Federation said "reasonably priced liquidity" was required to meet the "increased financing needs of otherwise commercially sound hotels and guesthouses" because banks are currently reluctant to extend additional credit.
Matthew Ryan, IHF president said if the credit facilities could not be secured, then a loan guarantee scheme should be introduced in next month's budget.
"The situation now calls for liquidity measures to be introduced to assist those commercially sound businesses to trade through a period of economic turbulence," he said.
"It is essential that the short term economic slowdown should not do long term harm to the tourism sector because protective measures where not put in place at this critical time".
Efforts by the industry to offer a completive product were being undermined by rising energy, public services, wages and interest rate costs, he said.
The IHF has already said the 6.1 per cent pay increase agreed under the new national agreement is "not sustainable in an industry in a market where the additional costs can not be passed on to customers in price increases".
Ryan said the sector's difficulties were being compounded by the current strength of the euro which was leading to a fall in visitors from the US and Britain.
To generate additional business the IHF has also called for the introduction of a €3 million marking fund to target the conference and golf holiday sectors.
Ryan said tourism was the State's largest indigenous employer with around 140,000 working in a sector that contributed €2.8 billion in tax to the Exchequer.
