Bord Failte could end up being replaced by an all-island tourist body, provided such a move wins the support of both the Northern Ireland Assembly and the Oireachtas.
The Government has confirmed that the role of the tourist board is being reassessed in light of the Belfast Agreement, the next round of EU structural funding and attempts to increase the tourist industry's contribution to the promotion of Ireland as a holiday destination.
"As part of the Good Friday Agreement, the matter of future arrangements in relation to the promotion and marketing of tourism on an all-island basis will have to be reassessed. All developments in this respect will of course require agreement by the Northern Assembly, the Oireachtas and both governments," a spokesman for the Minister for Tourism and Sport, Dr McDaid, said.
He said the future role of Bord Failte would also be influenced by EU funding and the developing partnership arrangements with the industry.
No Government decision has been taken so far in relation to the future of Bord Failte although Dr McDaid's department has produced a draft consultation paper as part of its preparation for negotiations on the next round of EU structural funding. This is currently being discussed with the industry and the state agencies. Also open for discussion is the tourism industry's contribution to promoting Ireland. More than 90 per cent of promotional funding comes from the state but with more than five million people visiting the Republic each year, the Government feels the industry is now strong enough to increase its contribution.
"As part of the partnership arrangements between the Government and the tourism industry, the objective is that the increasingly mature tourism industry will play a considerably greater role in the promotional effort," Dr McDaid's spokesman said.
Bord Failte chairman Mr Mark Mortell said the prospect of an all-Ireland tourism body emerging out of the Belfast Agreement was something the board had been aware of.
Bord Failte had worked in close co-operation with the Northern Irish Tourist Board (NITB) in recent years. "I don't see the prospect of an all-island tourism body being anything either tourist board would fear," he said.
The oldest semi-state body in the State, Bord Failte has been hit by a number of high profile departures from its senior management team in recent months. Mr Mortell said it was well advanced in its search for a new chief executive and hoped to conclude that process over the next few weeks.
It has also initiated the process of replacing former marketing director Mr Noel Toolan although the board will await the appointment of a new chief executive before recruiting.