The Minister for Tourism, Sport and Recreation, Dr McDaid, has predicted another record-breaking year for the industry.
Dr McDaid said the Belfast Agreement had opened up "dramatic new horizons and new opportunities" for marketing the island as a whole.
Addressing an Irish Tourism Industry Confederation dinner in Dublin last night, he said: "That agreement now offers an historically unprecedented opportunity to work together to bring new developments and new prosperity to benefit people of all traditions, North and South.
"The prospect of a lasting and just peace offers exciting opportunities to attract a new wave of international tourists who have not considered Ireland to date."
Dr McDaid said that the number of overseas visitors to Ireland had doubled over the past decade from 2.4 million to 5.2 million. Foreign earnings revenue had almost trebled from £800 million to £2.1 billion and employment in the industry had doubled from 60,000 to 120,000.
"I have every reason to believe that 1998 will be yet another record breaking year for tourism nationally," said Dr McDaid.
Official CSO figures for the first half of this year showed that overseas visitor numbers had grown by close to 11 per cent, compared to the same period in 1997. Passenger statistics for the year to September had also increased by 11 per cent and the latest ITIC/ Bord Failte Confidence Monitor had shown that four of every five respondents believed business was up, or at a similar level to last year's record performance.
Dr McDaid said Bord Failte had predicted a growth target of 8 per cent in visitor numbers, and a 9 per cent in revenue for 1998 and he was confident these targets would be achieved.
However, the tourism boom had brought its own problems, which the industry must offset, he said.
Increasing numbers of visitors was causing congestion in some resorts at peak season and highlighted the need to manage the flow of visitors as well as conserving the environment.
The labour and skills shortage also need a more innovative approach in terms of recruiting and managing staff.