An investigation into the Welsh tourist industry has found examples of unwelcoming staff, unclean rooms and hotels with misleading star ratings.
BBC Wales' Week In Week Out programme stayed undercover in hotels across the country to carry out the survey.
About 11 million tourists stay in Wales each year, spending over £8m a day.
Visit Wales' director of tourism and marketing Jonathan Jones admitted not everything was perfect and said the industry needed feedback from visitors.
About two thirds of hotels, bed and breakfasts and self catering properties in Wales are graded by Visit Wales, formerly the Welsh Tourist Board.
In 2008, the grading system is to come into line with the rest of the UK and the AA, and there are plans for compulsory registration of all accommodation.
The BBC's Week In Week Out programme said it found many hotels that were "clean, stylish and friendly" - but said "far too many" were "simply awful".
Former AA hotel inspector Simon Wright said it was not enough to market the industry without improving accommodation.
The programme spent weeks staying undercover in hotels
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"There are products out there that shouldn't be open. There's no place for them in Wales," he said.
The programme investigated the case of Anne-Marie Busch, from Wigan, who visited north Wales with her partner's family.
The family chose a three-star hotel, which should designate good quality, and booked the best rooms in the hotel.
She said: "It smelt of damp, the windows were steamed, curtains limp.
"We immediately asked to be moved, which we were - to a room that was even darker.
"The bathroom window was hanging off, the furniture was tatty, it was just dreadful."
'Not perfect'
The hotel cost them £90 pounds each for dinner, bed and breakfast.
The development of tourism is now the responsibility of Visit Wales, part of the Welsh Assembly Government.
Director of tourism and marketing Jonathan Jones admitted that not everything was perfect.
"We need feedback, we can only work on what people tell us. That is why I always say to people please complain up front," he said.
The Wales Tourist Board was brought under assembly government control from 1 April and the economic development minister Andrew Davies set out a seven-year tourism strategy.
During the launch of the strategy he said he wanted to focus on places of "excellence" and hoped activities such as walking, mountain biking, sailing and "quality" attractions would entice tourists.
Week In Week Out is on BBC One Wales on Tuesday 13 June at 2245 BST