Tourism will grow by 4 per cent, to around 6.2 million visitors in 2002, but numbers from North America will be down by 20 per cent year-on-year because of the reduction of flights into Ireland, according to the chief executive of Tourism Ireland.

Mr Paul O'Toole said that with focused effort the industry would return to the growth it had enjoyed over the past 10 years and he was confident it would again achieve the 7.25 million level set in 2000. "It's a very tough marketplace out there, but we are approaching it with confidence and some optimism," he said at the Travel Trade Workshop in Dublin yesterday.

Most of the €35 million promotional budget had been allocated up to April, but Tourism Ireland was holding a reserve to be used in May and June in Britain, the US and other markets, he said.

Mr O'Toole said 2001 had been a difficult year due to foot-and-mouth restrictions and the aftermath of September 11th. "Consumer purchasing has changed, particularly in long-haul markets. People are not booking three to four months out, people are paying four to five weeks out. That makes it quite challenging to plan and quite uncertain whether you are going to get the business. Indications are it's starting to happen and that gives us our confidence for the year. We do believe we will start to turn this year and look to a very good 2003."

As an island, Ireland had to be accessed by air or sea and a range of access was important, he added. He was concerned that there would be a frustrated demand in the US, following the closure of Aer Lingus and Delta routes, but he was heartened by the opening of an Air Canada route from Toronto to Dublin and new European carriers servicing the State.

Mr Niall Reddy, acting chief executive of Bord Fáilte, said the industry had repeatedly requested the development of Pier D at Dublin Airport for low-cost carriers which had served Ireland well.

"The reported delay, from a Bord Fáilte perspective, we would consider very serious. The sooner the terminal is provided, the better," he said.

Mr Reddy said that under the National Development Plan, €130 million was being provided over five years and at the closing date at the end of April, 200 proposals for development had been made to the board. At this year's Travel Trade Workshop, Bord Fáilte was introducing a new festival and cultural events programme, and cluster attractions were being developed for visitors, including special interest projects, he said. Increasingly, Ireland was regarded as less competitive price-wise than continental European markets. "We are doing a study to get the facts of this, to find out how in fact we compare on the key facts of a holiday."

The Travel Trade Workshop has attracted 334 tour operators from 30 countries.