More than 5,000 hotel rooms are expected to come on-stream in the capital between now and 2020, according to an analysis carried out by Fáilte Ireland.

That should help ease the supply bottleneck that's built up in recent years as growth in tourist numbers outpaced hotel room supply.

Caeman Wall, Head of Research with Fáilte Ireland, said between 2010 and this year, demand for hotel accommodation had grown by 50%, but in that period supply was virtually unchanged which has put pressure on hotel room prices.

"Prices are going up. Something we need to be conscious of is value for money. It's a key concern and all the more so in light of Brexit.

"Britain is our biggest competitor, but also a source market. It's become 15% more expensive for British tourists to come here owing to the drop in the value of sterling," he said.

Mr Wall also explained that tourists coming from other markets see Britain as an alternative market to Ireland and it's becoming cheaper owing to the sterling effect.

The provision of extra hotel accommodation should ease those competitive pressures. Caeman Wall said there should be enough stock to meet demand by around 2019 or 2020 when the bulk of the almost 5,500 hotel rooms come to the booking market.

"That's an increase in hotel room capacity of about a third between now and 2020. In terms of the locations, they will be mainly concentrated in the areas of Dublin 2 and 4, parts of Dublin 1 and 8, and an increase in stock around the airport."

He rejected suggestions that we could potentially end up with an oversupply situation given the falloff in tourists from the key UK market.

"Tourist numbers from the UK are down 6% so far this year but we're up 4% overall because of very strong growth from North America and other markets."

Mr Wall also argued for the retention of the 9% VAT rate for the tourism industry.

"That measure was about giving value to tourists and all the evidence is that it's done that and played a large part in the recovery. Anything that helps up to maintain price competitiveness, we ought to retain," he concluded.