The Irish Hotels Federation (IHF) has called on the Government to make a decision to develop a national stadium amid a growing expectation that the Cabinet will tomorrow approve the joint IRFU/FAI plan for Lansdowne Road.
The Minister for Sport, Mr O'Donoghue, is expected to put two options to today's Cabinet meeting: the redevelopment of Lansdowne Road to create a 50,000-seat stadium along the lines proposed recently by the IRFU and FAI; or a 65,000-seat stadium at the Abbotstown site initially favoured by the Taoiseach.
After several years of PD opposition to Abbotstown, the Lansdowne Road option is seen as by far the most likely choice.
The Tánaiste favours this option while the Taoiseach has said he is not "hung up" on the issue of location.
The decision is also expected to allow for the development of significant training and headquarters facilities for the FAI at Abbotstown.
The prospect of developing other facilities at Abbotstown - where the National Aquatic Centre is already located - would also be left open.
The Taoiseach's ambition for the development of a sports campus at the site would therefore remain alive as a long-term aspiration.
The proposal from the rugby and soccer ruling bodies is for a 50,000-seat stadium at an estimated cost of €250 million. The IRFU and FAI propose to contribute €83 million.
They say some €84 million of the total cost would return to the Exchequer in PAYE, PRSI, and VAT and that on this basis the cost to the State would be €83 million.
The IHF said last night the absence of a national stadium was a critical gap in the State's infrastructure.
This risked the loss of some €200 million in tourism revenue each year, it said.
IHF president Mr Jim Murphy said it was "ludicrous that Ireland may face a situation where its home international matches in rugby and soccer are hosted in England due to lack of facilities in the existing Lansdowne Road grounds".
The economic loss arising from such a development could be as much as €200 million each year, he said.