Business tourism in Dublin increased by 26 per cent in 2005, according to Fáilte Ireland.
The national tourism development authority, in conjunction with Tourism Ireland and Dublin Tourism, was outlining its business and marketing plans for 2006 to tourism operators in the Dublin region at a meeting this morning.
Fáilte Ireland chief executive Shaun Quinn said the tourism industry was "reasonably optimistic" about its prospects for the coming year.
He welcomed the increase in business tourism last year and said progress on the National Conference Centre project boded well for Dublin's development as a leading conference venue.
It is estimated that around 20 per cent of visitors to the country are here on business. Ireland's slice of the €40 billion global business tourism industry is currently valued at €400 million.
"The continued development of this sector is very important as a business tourist spends on average 70 per cent more than leisure travellers, and many stay on for longer visits around the country," said Mr Quinn.
Looking to the year ahead, he said that the hosting of the Ryder Cup offered an enormous opportunity to the capital, but he urged businesses to take a longer-term perspective of the event and avoid opportunistic pricing.
Mr Quinn also warned that Ireland's VAT rate of over 10 per cent was a major competitive disadvantage in attracting business meetings and conferences to the country.
Tourism Ireland, the overseas tourism marketing agency, has set a revenue target of €4.2 billion for 2006, driven by a projected 8.5 million overseas visitors to the island of Ireland this year.
Chief Executive Paul O'Toole said: "While we expect conditions to be largely favourable again for Dublin this year, there can be no complacency. It will be important, for example, that the proposed developments in Dublin airport are brought to fruition."
Tourism Ireland has a budget of €50 million to carry out overseas campaigns this year, the highest-ever level of funding for frontline tourism marketing.