Hauliers have threatened blockades across Ireland, as motorists around the country adjust to soaring costs, and now hoteliers are feeling the pinch of escalating fuel charges.

Galway hotel owner Paul Gill has been forced to pay his guests at the Claregalway Hotel a petrol subsidy, as prices continue to rise.

Mr Gill has taken the action to secure business because he feels the government has done nothing to support the tourism industry amid growing travel costs.

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The Hotel is now offering a three-night "refuel package" starting from €199 including meals, with a €50 fuel voucher, which can be redeemed at local petrol stations, inclusive.

"The reality is that rising fuel costs are having a serious effect on the home holidaymaker's market," said Mr Gill.

"Many holidaymakers feel that it is more cost effective to fly to Spain or Portugal on a cheap package deal, than to holiday at home, where petrol costs are now hitting €1.40 a litre."

"Given the current economic down-turn, the Government should be supporting our traditionally consistent industries such as tourism," he added.

Mr Gill has described the response to the package as "marvellous", saying it has "far exceeded" expectations.

The latest AA Ireland price survey reported a 13% rise in the retail price of petrol since last October. The price of diesel rose almost 30% during the same period.

(PR/JM)