IF violent disturbances in Northern Ireland escalate, there could be "serious repercussions" for the economy north and south, according to several business associations.
At present violence is only having a "limited affect" on business and cross-Border trade, according to the IBEC-CBI joint business council.
If there is an escalation, the worst affected sector will be tourism according to the CBI.
Traditionally this is the most sensitive of all sectors to violence, said a spokeswoman.
Mr John Kennn, speaking for the IBEC-CBI joint council said some cross- Border trade had already been interrupted by the unrest in Newry, a major route for traffic from the Republic.
But he said he saw no reason for the recent growth in cross-Border trade (15 per cent increase annually) to slow down as a result of the violence.
Mr Michael Mulcahy, Tour Director with CIE, speaking in Derry yesterday, said he teared the city's image as a tourist attraction had been damaged by the violence over the last two days.
"My clients were very surprised initially that the images they saw on television were repeated for them as we walked around the city centre," he said. "What happened will have a negative impact as it is flashed on screens around the world."
Ms Deirdre Stewart, CBI assistant-director, said the violence would not deter existing businesses operating in Northern Ireland, but might "put off fresh investment".
Ms Stewart said violence in Derry was "particularly regrettable", as tourism was so vital to the city. She said the petrol bombing of the Dublin- Belfast train was worrying
"That rail-line needs to be kept secure so that goods can get through," she added.
Ms Stewart pointed out that many business people were on holiday at the moment, so there were few foreign industrialists visiting at this time of the year.
Ms Mo Durkan of the Northern Ireland Tourist Board said there had been some cancellations since the violence, but it was impossible to estimate how many at this stage.
Mr John Brown, from Bord Failte, said there was no noticeable trend of cancellations in the Republic.
