There needs to be a shift away from investing in hotel accommodation and a greater emphasis placed on developing visitor attractions, Minister for Arts, Sports and Tourism John O'Donoghue has said.
Speaking at Fáilte Ireland's annual conference in Dublin Castle today, Mr O'Donoghue said: "Our public and private sectors have invested just over €2.2 billion in the tourism product between 2000 and 2004.
"Most of that investment has been in the accommodation sector but not enough has been invested to date in some other elements of the experience, such as special attractions and visitor activities."
The Minister said the key challenge for the industry was to meet "visitors' expectations of the holiday experience on the ground".
His comments were echoed by Fáilte Ireland chief executive Shaun Quinn who claimed that for every €1 invested in accommodation infrastructure over the past five years, less than 20 cent has been invested in visitor attractions or activities.
"Meanwhile many of our competitors are adapting and renewing their tourism packages to give their visitor the meaningful experience that they want," Mr Quinn said.
He told delegates: "Tourism trends show increasing interest in ecotourism, cultural tourism, slow tourism and authentic shopping such as local crafts and artisan work".
Fáilte Ireland chairwoman Gillian Bowler said: "Ireland has no innate right to expect people to visit us. We must ensure we offer and deliver the experience they want - so that they will recommend a holiday here to their family and friends."
She said: "The main trend in tourism during the last few years is that of meaningful experiences. Visitors no longer wish to be passive spectators. They are seeking to participate in the lifestyle and engage with the people of the country they are visiting.
"Emerging destinations means we must appeal to holidaymakers not only more than our traditional competitors such as Scotland or Brittany, but also more than eastern European countries.
"And as long-haul travel becomes increasingly accessible, we are also competing with Canada and New Zealand," Ms Bowler added.