There has been a 10% drop in foreign visitors expressing satisfaction with value for money over their holiday, with almost 20% of tourists saying they did not get good value.

Just 42% of visitors expressed satisfaction with the cost of living in Ireland, compared to 52% in 2000, according to a report compiled for the Irish Tourist Industry Confederation (ITIC).

"Seventeen per cent of holidaymakers felt that they did not get good all-round value for money, with some markets . . . such as Germany at 43% . . . stating very high levels of dissatisfaction.

In fact, the highest levels of dissatisfaction are recorded in the mainland European markets, in part reflecting the increased price transparency of our common currency."

Ireland's biggest pulling factor remains its people and scenery, according to the report, with 89% of visitors expressing satisfaction with the friendly nature of people they met while on holiday, while 90% of tourists expressed satisfaction with the scenery.

However, the report concludes that the growth in dissatisfaction at value for money in Ireland is a serious matter, one that "needs to be addressed if Ireland is to remain competitive in the global tourism environment".

The report also shows a growing imbalance in regional distribution of tourism in Ireland, with tourist numbers to the west of Ireland falling.

This is due to the shorter lengths of time being spent by tourists in Ireland as shorter city-break holidays grow in popularity.

ITIC chief executive Eamon McKeon said this trend showed the greater need for improvements in public transport and access to regions outside of Dublin.