A top-level advisory body on tourism has urged the Government to provide "fast turnaround" facilities at Dublin airport as a priority.
The first progress report of the independent group established by the Government to oversee the implementation of the national tourism strategy also called for the provision of a national conference centre.
The report, which was given to the Minister for Arts, Sport and Tourism, Mr O'Donoghue, last night, also stated there was an urgent need for the Government to renegotiate the US-Ireland bi-lateral air agreement.
Such a renegotiation would allow Aer Lingus to open routes to new cities in North America.
The fast turnaround facilities, proposed in the report, have been sought by low cost airlines.
The progress report maintained that the Government had worked effectively to contribute to the reduction of inflation and insurance costs for the tourist industry over the last 12 months.
However, the report stated that much more had to be done to improve the competitiveness of Irish tourism.
It said the provision of fast turnaround facilities, the renegotiation of the air agreement with the US and the provision of the national conference centre were "key priorities".
The report suggests that while both visitor numbers to Ireland as a whole and foreign revenue earnings were up in the first six months of the year, the impact may not have been felt in all parts of the country.
Speaking after receiving the report last night, Mr O'Donoghue said that national figures produced by the Central Statistics Office indicated "a good performance in the first six months of the year with visitor numbers up 5.4 per cent and foreign revenue earnings up 5 per cent".
"However as the Implementation Group itself points out, evidence on the ground suggests that these good overall figures may not be translating into increased business across the country.
"The trend towards shorter holidays and lower expenditure levels may be depressing tourism revenue, in particular outside of Dublin. This is a big challenge for Government and industry alike to address and the work of the Implementation Group is crucial in that regard," Mr O'Donoghue stated.
The progress report, which covers the six-month period to mid-2004, indicated high levels of satisfaction with the Government's "strong commitment" to implementing the recommendations of the tourism strategy.
The Minister said the Implementation Group would convene a national tourism forum to report in-depth on how the strategy was being implemented.
Mr O'Donoghue said he had set the State tourism agencies a target of doubling foreign revenue earnings over the next ten years, and increasing visitor numbers from about six million at present to 10 million by 2012.
The Irish Hotels Federation (IHF) last night said it shared the report's concerns at the competitive disadvantage that Ireland was placed in compared to competing tourist destinations in the EU. IHF chief executive Mr John Power said excessive levels of excise duty and VAT were seriously eroding Ireland's competitive attractiveness.
