Global economic conditions may hit tourism in 2008 but growing visitor numbers can be maintained, Minister for Tourism Séamus Brennan said this week.
He said the tourist industry must constantly upgrade and refresh itself to appeal to an ever-changing market.
This month's Budget allocated a record €170 million for the industry for next year, including €50 million for overseas marketing. "Financial instability, deteriorating exchange rates and weaker economic growth have become features of some of our key tourism markets during the past few months.
"If these trends continue, they will pose a major challenge to sustaining overseas visitor growth and, in particular, revenue growth in the coming year," he said.
Mr Brennan explained that the Government, the tourism industry and Irish people in general must rise to meet these challenges. "All involved must commit to constantly refreshing, upgrading and expanding our tourism product to meet the ever-changing requirements of visitors," he said.
With political stability in Northern Ireland, the Minister said there was no reason why all-island tourism could not top €16 billion in combined revenue by 2010.
He added: "Despite a poor summer weather-wise, overseas travellers were not put off coming to our country. In fact during the month of August alone, almost one million visitors came to Ireland, representing the highest monthly total ever recorded."
Ireland recently topped the Lonely Planet Bluelist survey as the world's friendliest destination.