The proprietor of the Kerry holiday village who refused accommodation to an Israeli family could face prosecution under equality legislation, according to the Equality Authority.
The body's chief executive, Mr Niall Crowley, said there was a prohibition on discrimination in the provision of accommodation on grounds of race or nationality under the Equal Status Act, 2000.
This prohibition was subject to limited exemptions "to protect common sense", and each case had to be viewed separately in this regard, he said.
Mr Crowley added, however, that one could not discriminate against others on grounds of political opposition.
"That would be an illogical exemption. The law is there exactly to protect someone from being discriminated against because they are an Israeli, or because they belong to a certain race or nationality."
Mr Crowley noted the authority had not received a complaint on the matter, and nor was it familiar with the details. On the face of it, however, he said the person who had been refused "has a basis for exploring a case".
Mr Crowley noted some people were not coming forward to make complaints in regard to accommodation provision as they were unaware it was covered by the Equal Status Act.
Meanwhile, concern has been expressed about the situation within the Jewish community in Ireland.
Mr Joe Briscoe, a member of the Jewish Representative Council, described it as "very sad and very unfair".
Up to 400 Israelis have been coming to Ireland on charter flights each week since June and "they have had nothing but good reports about the friendliness of the people here."
Speaking in a personal capacity, Mr Briscoe said he believed the holiday village proprietor was being "very narrow-minded". "Here was a chance to get another side of the story, to hear how people are afraid to get a cup of coffee in a restaurant, how they're afraid to go on a bus, because of suicide bombers.
"I can understand people having strong views even if I disagree with them, but to drop to this is really awful."
He added he hoped the case would not make its way into the Israeli media as it might harm the tourism industry here.
"We went with some Israeli friends to Kerry and the people there bent over backwards to be nice. All the reports back from Israelis have been positive. The one thing they have said is how friendly Irish people are. This is the first unfriendly thing I have heard," Mr Briscoe said.
