The political instability caused by the failure to set up the new Northern Ireland executive has not affected tourism significantly, says the chief executive of the Northern Ireland Tourist Board.

"Politicians squabbling might make for tedious television, but it does not put off visitors. What does influence them are scenes of violence flashing across screens around the world," says Mr Ian Henderson, who insists it is usually the marching season in July that creates the biggest headache. Tourist board figures show bookings at its Dublin office up 50 per cent on 1998 after this year's peaceful July 12th. Mr Henderson is still amazed at how quickly the industry reacts to political change, as was shown by the record visitor figures in 1995, the year following the announcement of the first IRA ceasefire.

Political instability does not so much influence holidaymakers, according to nationality, but to "segment". Mr Henderson believes family visitors are sensitive to potential political upheaval, while visitors on golf or fishing packages are largely unaffected.

But lack of political progress has caused frustration within the travel industry. The preChristmas Heads of Agreement document stipulated the setting-up of an all-Ireland tourist company, made up of Bord Failte and the NITB. Those plans are "parked", Mr Henderson says, as they depend on the prior creation of the North-South council.

What has helped the North's tourist industry is the abolition of duty-free shopping. "I know I am risking upsetting my colleagues in the South saying this, but I am glad we now have a level playing-field on the Irish Sea," he says.

While there are still only a few international flights to and from Belfast International Airport, the arrival of the low-cost airline EasyJet and of an Aer Lingus service to the United States have had a great impact. More than any political upheaval, the sterling exchange rate has affected the North's tourist industry. While visitor figures (1.47 million in 1998) were up by 4 per cent compared to 1997, earnings only in creased by 2 per cent in real terms to £280 million. "We are doing all we can to facilitate the strong pound . . . but, really, there is not a lot we can do," says Mr Henderson.