The Irish Hotels Federation has said the sector is in crisis as it struggles to cope with a 20% overcapacity of 12,000 rooms.

Mr Power says expansion in recent years was unsustainable and 61,000 beds are now available in hotels around the county, compared with 40,000 in 2002.

The number of hotels in the country has doubled in the last 13 years and about 100 of these were built on the back of tax breaks.

The IHF wants the State to intervene to restructure and rescue the sector.

Speaking on RTÉ’s Radio, Mr Power said a mechanism is needed to control how overcapacity is taken out of the market. He said the rooms should be used for another purpose for a five-year period.

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