The building of more tourism accommodation in Killarney could have a negative effect, and the town should "genuinely" come to grips with sustainable tourism, a new plan for the town proposes.
The Killarney Urban Masterplan, the first part of which contains "the vision" for the town for the foreseeable future, is an attempt to "move away from what has happened here and in other towns over the past years," according to the town engineer, Mr Denis O'Connor.
Growth "has been driven by developers", and there has been no overall cohesive plan, said Mr O'Connor.
This plan marks the beginning of a framework for the deliberate and strategic planning of the town.
Development in Killarney has drawn criticism from heritage and environmental bodies because of encroachment near the boundary of the national park.
Further extensions to hotels and B&Bs could create a downward economic spiral that would be difficult to stop, according to the plan, drawn up by Murray O'Laoire architects.
In the medium term, Killarney does not need to generate more employment in the accommodation sector, since it already brings in a large number of employees for that sector.
Killarney is likely to retain its pre-eminent position in Irish tourism, despite the current uncertain phase, it said.
However, quality and sustainability should be the central themes in future development.
One of the key factors for the future of the town was the growing population of older people in Ireland, Killarney's major market, and a demand for holidays and activities geared to their needs and wants.
An estimated two million bed nights were sold in Killarney in 2001, while there were around one million overnight visitors.
The town now has almost 3,000 hotel rooms, some 30 per cent more than five years ago.
The strategic part of the Killarney Urban Masterplan is due in March, and with the other parts of the plan, will form a reference point for future development, Mr O'Connor said.