Ireland's top film facility, Ardmore Studios in Wicklow, stands to lose millions in revenue this year if an aggressive marketing campaign fails to attract a large-scale international production.

So far no big-budget films are booked into the studios and the company's chief executive, Mr Kevin Moriarty, has embarked on a major drive to lure the US studios back to Ireland after the Minister for Finance, Mr McCreevy last year threatened to scrap the section 481 tax relief.

Big-budget films are the studios' life blood and while Mr Moriarty claims he is confident he will secure one or two international productions by the end of the year, Ardmore's quiet 40,000 square feet of stage space is unsettling some in the industry.

Last year the blockbuster $80 million King Arthur budget boosted the total industry spend to a record €160 million. This year, IBEC's Audio Visual Federation, a lobby group made up of producers and directors, estimates that this figure could be down nearly 38 per cent to €100 million.

According to Mr Moriarty the slump in activity is down to three factors: the delay in renewing section 481, the surge in the value of the euro against the dollar and the enhanced attractiveness of tax incentives offered by other European countries.

Production companies generally have long lead-in times of between six and 12 months. By only securing section 481's future in December, the "momentum of incoming projects slowed down significantly", Mr Moriarty explained, and "studios began building up relationships with other countries".

While the dramatic rise in the euro's value against the dollar has persuaded many US production firms to remain at home, the massive tax relief offered in Eastern European countries makes Ireland's maximum film tax relief rate of 12.5 per cent look increasingly uncompetitive.

Mr Moriarty claims there is "a lot of good feeling from US studios towards the Irish film industry" and said he "was fully confident we will get some international production this year".

However, he admitted the absence of any forward booking for a big-budget film is "hurting" the studios.

With over 100,000 sq ft of office space to maintain in addition to the extensive stage facilities, Ardmore studios needs at least €1.5 million in annual revenue just to stand still.

However, Mr Moriarty said the future of the studios is not at risk and said even if Ardmore fails to attract a big-budget movie "the worst case scenario would be that we break even".