In his end of year review of tourism performance and outlook for 2005, Minister for Arts, Sport and Tourism, Mr O'Donoghue has described 2004 as a mixed year for the sector despite projected growth in overseas visitor numbers of 3 per cent to over 6.35 million.
"While this is a considerable achievement, there are a variety of trends emerging from a deeper analysis of these figures, which will require particular attention from the industry and the tourism agencies, if we are to achieve the type of growth envisaged for the sector in the Report of the Tourism Policy Review Group published in 2003" Mr O'Donoghue said.
On the positive side Mr O'Donoghue highlighted the recovery in visitor numbers from North America, double digit growth from countries such as Italy, Spain, Norway, Denmark, Sweden and Finland, and the increase in long haul visitors from markets such as Australia which had been hit by the SARS outbreak in 2003.
During 2004 Tourism Ireland also entered the Chinese market with the signing of a mutual agreement in Dublin in May, and it is now one of the three "incubator" markets being targeted by the tourism authority - the others being India and South Korea.
Traditionally strong markets including Britain, France and Germany all performed poorly this year. Mr O'Donoghue attributed this to increased competition from other destinations, the loss of share in low fare access and the poor state of their economies generally.
The Minister also highlighted the progress on the Public Private Partnership to build a national conference centre in Dublin with a preferred tenderer expected to be selected by the middle of next year.
Tourism agencies have set growth targets for 2005 of 4.7% for overseas visitor numbers and 5% in domestic tourism.
"With the resources and expertise available to them in 2005, Tourism Ireland and Fáilte Ireland are well placed to take a strong lead in addressing the competitive challenges and seizing the business opportunities that lie ahead", Mr O'Donoghue concluded.