There are fears for the tourism industry as thousands of refugees are forced to take up beds in hotels and B&Bs while the government fails to house them.
Around 17,200 beds in hotels, guesthouses and B&Bs are now home to refugees as the country grapples with finding a solution to the greatest humanitarian crisis since the Second World War - in the middle of a housing crisis.
This will impact staycationers and businesses as peak tourism season approaches - due to lack of beds, inflated prices and a drop in footfall, TDs and business groups have said.
The Government also faces being sued over a potential two-year loss of trade to restaurants near Citywest Hotel in Dublin, due to its contract to house Ukrainian refugees.
Restaurants Association of Ireland chief Adrian Cummins said: "It really is a perfect storm at the moment for us."
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He said there are areas of the country which have started to see a displacement of tourists because of the volume of refugees going into certain areas, such as Co. Clare and in Connemara, Co. Galway.
Of the 29,000 Ukrainian refugees who have arrived in Ireland to date, 59% are in temporary accommodation in hotels and B&Bs, which amounts to about 10% of the available beds in hotels, guesthouses and B&Bs nationwide.
Housing Minister Darragh O'Brien has said more than 100,000 Ukrainian refugees may arrive in Ireland, while only around 900 people have been placed in accommodation via the Irish Red Cross to date, despite more than 9,000 accommodation pledges being cleared for approval.
Amid ongoing criticism, and in a bid to ease pressure on the tourism sector, the Cabinet is today expected to approve a €400 monthly payment for households that host Ukrainian refugees, sources said last night.
However, sources also said it could be a "number of months" before people see the money in their bank accounts as the payment will require legislation before it can be paid out.
Restaurants and bars in the Saggart area in Dublin near the Citywest Hotel have expressed anger over the damaging cost to their businesses.
They would usually cater to large numbers of tourists and visitors as Ireland's largest hotel and conference centre but say their trade has been decimated.
They said the contract with the owners of Citywest covers an indemnity for its lost revenue from conferences and events, which was approved by the Cabinet in April.
However, they said that no such indemnity has been offered to businesses in the area. A restaurant owner said their pending legal action was grounded on the fact Citywest only has planning permission for shortterm tourist accommodation, not long-term accommodation for residents who may be staying there for up to two years.
Mr Cummins, of the RAI, stressed: "I want to make it clear that we support the Government’s actions with regard to the Ukrainian refugees during the war."
However, he cautioned: "It will affect some businesses this summer if hotels are full of refugees rather than tourists. If we don't have tourists, we don't have business."
Their comments follow Fáilte Ireland chief Paul Kelly who warned last month that Ukrainian refugees remaining in emergency hotel accommodation into the summer was "neither good for refugees nor good for tourism" and there will be "significant knock-on impacts elsewhere".
"For every euro that a visitor spends on accommodation, they spent two-and-a-half euro in other parts of the economy. If you have significant tourism accommodation stock coming out of the market across the summer it will make it very difficult for pubs, restaurants, activity providers and visitor attractions that rely on that visitor. If they can't get a bed, they won't come."
Independent Senator Timmy Dooley said that he too was concerned about the impact on tourism.
He said: "The number of beds being used for Ukrainian refugees is making it hard to get a hotel room, especially in Dublin, if you don't plan ahead.
"But while it is an inconvenience for TDs, we can manage to drive up and down if we need to. The big issue is the cost to tourism."
Sinn Féin's housing spokesman Eoin Ó Broin said the Government is "not putting any work" into providing long term housing solutions for Ukrainian refugees.
Mr Ó Broin said: "Neither hotels nor home-sharing is the most appropriate form of emergency accommodation.
"We know from our homelessness crisis and from the research that's been done by many organisations, doctors and child psychologists that hotels are not places where people should be living for any period of time."
A Department of Housing spokesman said: "The Department has currently contracted approximately 17,200 beds in various hotels, guesthouses and B&Bs, hostels, commercial self-catering accommodation and certain other repurposed settings with additional accommodation in those categories shortly coming online.
"At present, it is not possible to provide a breakdown on numbers in different types of accommodation as these are constantly changing depending on the number of arrivals from Ukraine arriving into the country on a daily basis."
Some rural TDs said their struggle to source hotel accommodation in Dublin was leaving them with drives of up to five hours a day to attend Dáil sittings.
One source said they have also seen a huge rise in hotel prices. They noted that it would usually cost in the region of €90 to €120 a night to stay in a hotel in Dublin. This week, they suggested, it was difficult to source accommodation for less than €280 to €300.
A single night in a bed and breakfast in one north Dublin city B&B is advertised at €190.
One source said: "Everyone expected prices to creep up, but it is now to the extent where you can't get [anywhere to stay].'
Junior Minister Patrick O'Donovan said his office has received calls with people reporting soaring hotel prices with rates increasing by 200% to 300% from a Thursday to a Sunday. Other TDs have complained of seeing "crazy and ridiculous" prices that doubled in recent weeks.
FF Senator Tim Dooley said the cost of a two-night stay in a Dublin hotel is nearly twice that of other European countries.
