Festivals around the country are likely to generate €300 million for the economy this year, according to the Association of Irish Festival Events (Aoife).
Over 400 festivals and events will take place in the Republic and Northern Ireland and will attract eight million people, the association said yesterday.
Governments on both sides of the Border will invest over €13 million in festivals and events in 2007 and local authorities and municipalities will spend over €7 million.
Festivals planned for the season include the Kerry Samhaliocht Bumble Bees Children's Festival through to Europe's largest street party at the Banks of the Foyle Halloween Carnival.
Ireland will also host the World Rally Championship for the first time.
Literary and arts events taking place will include the Mohill Arts and Storytelling Festival in Leitrim and the Graiguenamanagh Town of Books Festival.
This year also marks the 400th anniversary of the Flight of the Earls and a number of events will take place in the northwest to celebrate it.
Speaking at the launch of the organisation's yearbook, chairwoman of Aoife, Maria Moynihan said Irish festivals return about 70 cent in every euro directly to the local community.
"In tourism terms they are critical in sustaining our unique cultural tourism product," she said.
Ms Moynihan said the cost of festivals would rise by 60 per cent if it was not for volunteers.
"Running the island's annual programme of festivals and events involves a huge commitment from over 45,000 volunteers, a figure more than double the amount required to stage the community games throughout the country," she said.
Launching the yearbook, Minister for Arts, Sport and Tourism John O'Donoghue praised the continuing work of Aoife and described the publication as an essential reference point for festival and events organisers.
