TOURISM could be worth £3.1 billion to the Irish economy within eight years, if the industry can expand into new markets, as forum on tourism in Dublin heard yesterday. Such growth would mean the creation of an estimated 20,000 new jobs.

The seminar, run by the Irish Tourist Industry Confederation - (ITIC), was told that Ireland should target emerging and niche markets, and that tourism needed to be spread out more across the country.

A new report, commissioned by ITIC, warned that, although the number of tourists continued to rise, Ireland's share of the high-spending category of visitors, known as A-Bs, was falling. The proportion of lower-spending "C1" tourists has jumped. Currently, 40 per cent of visitors to Ireland are categorised as A-B, while 50 per cent are classed C-1.

The report, carried out by economic consultants Fitzpatrick Associates, says that competition in major markets is tightest for the higher spenders. There is a ceiling, both in terms of time and money, for many potential A-B visitors, one of the authors of the report, Mr John McEniff, said.

Nonetheless, there is considerable scope for Irish tourism - an industry now worth £1.8 billion a year to the economy - to increase its business from almost all of its main markets, he added.

Apart from existing markets, the industry could expand in new or emerging ones, the report suggests.Among these Scandinavia, Spain and Italy are most promising.

Mr Eamonn McKeon, the chairman of ITIC and chief executive of Great Southern Hotels, said he saw great potential in the Japanese market. But he added that a marketing campaign in Japan would cost at least £5 million a year and could take time to succeed.