If Northern Ireland could emulate the Republic's tourist industry, up to 20,000 jobs could be created, according to the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney.

She was speaking in Vancouver as part of her current trade mission to the United States and Canada.

"The Northern Ireland tourist industry has suffered greatly from the effects of political instability. While tourism accounts for more than 6 per cent of GNP in the South, it only comprises 2 per cent of the Northern Ireland's economy," she said.

She said peace could create a high level of jobs and pointed to the 155 per cent increase in bookings with the Dublin office of the Northern Ireland Tourist Board during the last ceasefire.

She said that "however deep the political divisions that may exist among the people of Ireland, North and South, there are very few who will contest the view that Ireland makes sense as a single economic unit".

She added that the ceasefire would have other beneficial effects on the lives of those living in Ireland.

"The Northern Ireland public expenditure profile will gradually change and the huge resources which have been devoted to the security area in Northern Ireland will hopefully be scaled down and redistributed towards economic development", Ms Harney said.

She added that the Republic had been particularly successful in attracting North American investment in recent years, but some of it had been lost because of the "negativity of violence".

"In the context of a European and global market place, the creation of a true all-Ireland market should create significant new employment and add greatly to the prosperity of all our people," she stated.

She said that nobody had ever "fully justified the existence of a geo-political border on the basis of economics".

"Both parts of the island have young, well-educated populations living in an environment which is largely unspoilt. Both parts can offer an attractive package of measures to potential investors," she concluded.