THE introduction of a single European currency would be a substantial benefit to the tourism industry, the Fianna Fail spokesman on tourism and trade, Mr David Andrews, said yesterday.

EMU would change the cost of holidays within EU countries. Money currently being spent on transaction costs would produce a substantial growth in the Irish economy if it were spent within the Irish economy, Mr Andrews said.

Should Ireland and Britain join the EMU then a fall of at least 1 per cent in Irish interest rates could be expected. This fall would have a "very beneficial effect" on the tourism sector because of the capital intensive nature of the industry.

"Tourism was worth £2.3 billion to the Irish economy in 1995," Mr Andrews said. "This figure represents 6.8 per cent of the Gross National Product." In 1995, tourists from mainland Europe represented 23 per cent of all international tourists coming here. Some 2,285,000 tourists came from Britain in the same year, Mr Andrews said.