Sales of Waterford Crystal may be affected by the foot-and-mouth crisis according to Mr Redmond O'Donoghue, the president and chief operating officer of Waterford Wedgwood.

Sales to tourists, mostly from North America, account for 60 per cent of the £45 million (€51 million) worth of crystal sold in Ireland every year, he said after the company's annual general meeting in Dublin yesterday. Crystal sales worldwide were €436 million last year, but Ireland is the second biggest market for crystal after the US, said Mr O'Donoghue. More than 355,000 people visited the company's factory and gift shop in Waterford last year. Sales in the US are also likely to be hit by the slowdown in the US economy which is the luxury goods group's largest market, accounting for sales of €533 million.

It was too early to say whether North American tourists will stay away from Ireland this year because of the foot-and-mouth scare, said Mr O'Donoghue who is also chairman of Bord Failte. Potential visitors will be making their minds up in the next six to eight weeks, he said. The news that humans have now contracted the disease in Britain is unlikely to play well in North America, he said.

Last year 6.4 million people visited Ireland - of which 1 million were from the US - and Bord Failte is hopeful that there will be no fall-off this year, said Mr O'Donoghue. Sir Anthony O'Reilly, the chairman of Waterford Wedgwood told shareholders that 2000 was the best year in the company's history.

Sales exceeded €1 billion for the first time and profits were a record €79.6 million. He said that sales in the year to date were up 8 per cent on last year despite the uncertainties of the economic climate.