The Solomon Islands Visitors Bureau says the shortage of hotel rooms is affecting Honiara City's ability to host regional and international conferences and tourism.
The warning comes after two international conferences were cancelled because of the shortage of rooms.
With the Forum Finance Ministers meeting starting in Honiara in the next few days, delegates have problems finding accommodation.
Staff at one of the biggest hotels in the city say they have turned away visitors over the last few weeks.
Honiara lost 140 beds in the recent riots when Pacific Casino Hotel was burnt to the ground.