A NEW tax on visitors to the Republic would mean that Irish people would have to pay slightly less when travelling abroad, the Minister for Tourism, Sport and Recreation, Dr James McDaid, has said. He warned that, with dwindling EU funds, - such a tax, known as an access tax, which would be used to promote Ireland abroad - is vital if tourism figures are to remain buoyant.

Dr McDaid said it is forecast that by 2005 the Republic will be getting around 8 million overseas visitors per year. He said a fund of £20 million£24 million per year was needed to promote Ireland abroad.

Dr McDaid said the current annual spend on marketing, including EU contributions, was around £14 million-£16 million, but the EU funding is likely to be reduced and the industry must prepare for the shortfall. He said a tax on visitors of £3£4 per person would guarantee important funding for maintaining momentum in the tourism industry.

Irish visitors, who currently pay a £10 travel tax, could see this tax reduced by £1-£2. Dr McDaid pointed out that virtually every other EU country had an access or travel tax and Britain had introduced a £10 tax last year. However, Dr McDaid stressed that he would not introduce such a tax without the consent of the tourism industry, which has reservations on the issue. He said discussions on the matter were ongoing.

Meanwhile, Bord Failte is to increase its targeting of Italian visitors to Ireland. Dr McDaid, who was in Milan to promote Ireland this week, said last year 128,000 Italians visited Ireland in 1998. He said this figure was expected to increase by 8 per cent this year.

The Italian market was worth £54 million to the economy. Figures compiled by Bord Failte show that Italians spend more per night per capital in Ireland than any other nationality.

Data compiled by the tourism body also showed that Dublin is the most frequented destination in Ireland by Italians. However, 63 per cent of Italian visitors also visit the West. A study, which was carried out two years ago, predicted that Ireland could ultimately attract more than 1.6 million Italian visitors.