Ferry traffic between Cork and the Continent has dropped by 20 per cent between 1992 and 1996, according to the Minister for Tourism.
Dr McDaid said, however, that there had been an increase of 9 per cent or 264,000 passengers in ferry traffic from Cork to the UK.
He was responding to Fine Gael's tourism spokesman, Mr Bernard Allen, who said that the decision by Irish Ferries to withdraw from the Cork to France route had "a decidedly negative effect" on tourism in the Cork/Kerry area.
The Minister said the drop in ferry passengers to the Continent was 85,000 but it was more than compensated for by the increase in passengers travelling by air which was 183,000.