The chairman of Bord Failte, Mr Mark Mortell, has submitted his resignation following his appointment earlier this week as commercial director of Aer Lingus.
The Minister for Tourism, Dr McDaid, said yesterday he had accepted the resignation with regret.
Industry sources said last night Mr Mortell's resignation as chairman of the tourism body was inevitable as he could not be seen in future as impartial in his dealings with other airlines and ferry companies.