Euro exposes rising prices in Irish hotels and restaurants

The Irish tourist board, Bord Failte, has sounded a warning over the rising costs facing Ireland's tourists, in comparison to prices elsewhere in Europe.

The problem has become particularly acute since the changeover to the euro at the start of the year, according to Niall Reddy, the board's acting chief executive. "All of a sudden, the price issues are totally transparent," he said.

The warning comes amid allegations that Irish hotels and restaurants have used the currency changeover to push up prices.

The Irish Consumers' Association claimed that prices in the sector had risen by 12-14% in the past year, four times the European average, and that even Irish people might soon find it cheaper to holiday abroad.

The Irish Hotels' Federation acknowledged that eating out was more expensive, though it put the rise at 8%. It blamed high labour costs, claiming they were three times the EU average, and soaring insurance premiums. Chief executive John Power insisted that "there is no element of profiteering in this".

The report of a government-ordered inquiry into allegations that the service and retail sectors used the introduction of the euro to manipulate prices is due shortly. Now the EU statistics office, Eurostat, plans a similar investigation across member states, having found evidence of "significant price increases" since the changeover.