Qatar Tourism Authority (QTA) has issued a warning to hotels in the country against attempts to increase prices exorbitantly to cash in on the increased inflow of tourist, according to a report.

Some hotels had increased prices by 400 per cent to 1,200 per cent between March 10 and 23, adding it had set up a special panel to investigate the issue and legal action will be taken against the erring facilities, said the Peninsula report.

"This illegal price increase has given a negative reputation about the tourism sector in Qatar and the national economy, especially when more tourists from other GCC countries are coming to the country," QTA was quoted as saying in its Twitter account.

"This irresponsible act is damaging efforts being made by QTA to promote tourism and attract families during weekends and holidays," it added.

"A special team has been set up to investigate such violations by some hotels and legal action will be taken based on the report of the team," said the statement.

Meanwhile, officials of some leading hotels said some irresponsible hotel managers were causing damage to the industry by increasing prices, said the report.

Most hotels have reported 100 per cent occupancy rates during this month, it added.