A proposal that a levy of £3 be imposed on all incoming visitors in order to provide extra funding for tourism promotion is under consideration by Tourism Minister Jim McDaid.

If the proposal is adopted by the government, it would not apply to visitors from Northern Ireland, according to official sources.

With the number of the tourists to the Republic now running at five million annually, the levy would raise £15m for the government.

It would be used to make up a shortfall in European Union funding expected to take effect from next year.

Last year, Bord Failte had hoped to have £30m available to fund tourism promotion campaigns abroad, but it only had £11m. As a result of the funding shortage, a number of senior marketing executives left the State agency.