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Hotel prices in Ireland are rising for the first time since 2008 offering a welcome boost for the tourism industry.
However, an international hotel price index shows that Dublin remains the cheapest capital city in Western Europe, despite Irish hotel room prices increasing by an average 4% increase over the past year.
The annual survey by Hotels.com reveals that the average price of a hotel room in Dublin is 76.
Overall, Ireland is the third cheapest destination in Western Europe with average prices of 82 up 3 on 12 months ago. Only Portugal and Malta offer cheaper prices.
Average hotel prices here remain relatively cheap compared to the height of the boom, as the survey points out they fell by 35% in the past three years alone.
Hotels.com claimed the increase in Irish prices was linked to an overall increase in the number of tourists visiting Ireland who were attracted by stable, low prices.
It said last years visits by Queen Elizabeth and US president Barack Obama played a role in boosting recovery in the sector.
According to the survey, Westport, Co Mayo, is the most expensive place in Ireland for hotel rooms with average prices at 111 up 7% on the past year followed by Kilkenny at 107 and Wexford at 103.
Researchers said the cost of accommodation in Westport had been fuelled by a number of popular events including the towns arts and musical festivals.
At the other end of the scale, Limerick has overtaken Waterford as the cheapest destination, with hotel rooms in the city averaging 64 per night.
In Waterford, hotel prices soared by 24% in the past year to 69 per night as a result of the Tall Ships and Spraoi festival.
Average prices in Cork hotels jumped by 8% to 82, while they fell by 3% in Galway to 98.
Switzerland is the most expensive destination in Western Europe with average hotel prices of 151 per room per night up 8% on 2010. It is followed by Denmark (122) and Sweden (121).
The UK is the fifth most expensive destination with average room prices at 115 no change on the previous year.
Although hotel prices in Dublin rose last year, they fell in many other major European cities including Athens, Lisbon, Rome, and Madrid, which each recorded a 4% decrease.