The number of tourists visiting Ireland could double by 2012 according to the Minister for Arts, Sport and Tourism, Mr O'Donoghue.
He said a report he received today setting a per-annum target of 10 million overseas visitors in nine years' time was "ambitious but achievable".
Receiving the strategy for Irish Tourism 2003-2012 in Dublin Mr O'Donoghue said: "I am of the strong belief that we are here today at the beginning of something very important.
"We have been presented with the most comprehensive, authoritative and visionary document ever produced on one of our most important industries."
The report included an overview of tourism, an analysis of changing customer and industry trends and projections for international growth.
It said that the government should aim to double annual overseas visitor spending to €6 billion and increase visitor numbers from six million to 10 million.
The most important tourism markets would continue to be Britain, the United States, the larger countries of mainland Europe and the domestic market.
But the customer profile was changing as a result of factors such as better education, increased leisure time and increasing interest in environmental conservation.
The report also said the potential for developing additional low-fare air services remained strong.
"We have been told in no uncertain terms of the value of tourism to this economy and this country, of the challenges it now faces and of how to ensure it can grow as it needs to, and as it should be allowed to.
"We have been set ambitious targets for this development ... extremely ambitious but achievable.
"In fact it has been done before. Back in 1990 we had just over three million visitors per year. The decade that followed saw us more than double these numbers."
The report was compiled by the Tourism Policy Review Group, made up of representatives of the hospitality industry and business chiefs.