The absence of a marketing fund to promote the State to tourists was a serious concern in the light of increased competition from other countries, the chief executive of the Irish Hotels Federation (IHF), Mr John Power, said yesterday.

Addressing hoteliers in Donegal, he said a £20 million "ring-fenced" fund was required under the joint control of industry and the State if it was to sustain the 125,000 people working in tourism and the annual contribution to the Exchequer of £1.4 billion.

The State was now faced with "aggressive, emerging competition" that was "armed with large marketing funds". These could switch tourists away from their Irish destinations.

The industry was an indigenous one with a wide geographic spread and, unlike foreign multinational companies, was not liable to close operations to move to other economies.