The tourism industry wants the Government to fund urgently a €3.1 million overseas marketing campaign to boost declining tourist numbers. The call was made yesterday by the Irish Tourist Industry Confederation (ITIC) after it published a report showing that the number of US tourists to Ireland is at its lowest level since 1996.

Mr Brendan Leahy, the chief executive of the industry umbrella body, said there was considerable concern that the lucrative American market was in decline for the second year, despite expectations that it would pick up.

Mr Leahy urged the Minister for Tourism, Mr O'Donoghue, to give about €3.1 million to promote market recovery by vigorously marketing Ireland in North America and Britain.

Mr Leahy said the sum was earmarked for this purpose and set aside by the previous minister last spring in case the expected recovery did not materialise.

He predicted that the American tourist market would be down 15 to 20 per cent this year, with a small growth in the UK market of 5 to 10 per cent and a 3 per cent growth in the European market.

"Overall that would mean a loss in terms of revenue," said Mr Leahy. "The industry spends two-and-a-half times more than the Government in overseas advertising and promotion and feels it's not getting enough support. The Exchequer yielded €1.2 billion in 2000 from tourism and so it is a big beneficiary and should maintain its commitment."

A spokesman for the Minister said the Government would spend close to €110 million in Exchequer funds this year supporting the tourism industry.

"The Minister is urgently reviewing the situation in consultation with the industry to see what further steps can be taken to help the industry meet the unique challenges it is facing this year," he added.

Yesterday's survey commissioned by the confederation shows a decrease of 40 per cent in the number of coach tours from the US and a reduction in projected holiday traffic from mainland Europe.

It says any expectations of a stronger performance than last year from British tourists depends on late bookings and a buoyant autumn season. The report also found a lack of buoyancy in the home holiday market, in the face of the increasing attractiveness of overseas travel.

Industry representatives who were surveyed pointed to under-funded marketing campaigns and the lack of campaigns in May and June. They also said lower fares to the UK from mainland Europe affected the Irish tourism sector.

"The tourism sector is facing the prospect of a second year of decline in several markets and a further reduction in US visitors, Ireland's highest-spending visitors," the report says.

"Many businesses are experiencing a second year of very difficult trading conditions. Extremely keen competition in light of a reduced demand for international travel is putting prices under pressure while costs continue to increase."

American tourists spent an average of €793 per head in Ireland last year, compared with the €363 average spent by British visitors.