Tourism losses due to the foot-and-mouth crisis are estimated at £225 million, but potential losses could be £640 million, the Dail was told.

However, the Minister for Tourism, Sport and Recreation, Dr McDaid, said "we have won the battle against foot-and-mouth", and while the industry would be hit this summer, the autumn would be good and next year would be a bumper season.

Fine Gael's tourism spokesman, Mr Jim Higgins, said Ireland had lost the PR battle in the US where the impression given was that "we have something akin a nuclear holocaust, the birds are falling from the trees, we are locked in our homes and that the disease affects humans".

Dr McDaid said the £225 million losses included £175 million for foreign earnings and £50 million for domestic business through cancellations and lost bookings. Projected losses from the North American market are put at 18 per cent for March to August, based on bookings.

Bord Failte estimated potential losses from foreign earnings this year at £500 million, with the domestic market down £140 million, depending on the rest of the year.

However, the Minister said the potential losses were a "worst-case scenario" and after visiting the US, where he had had 36 interviews, he had "a more confident picture".

He said the Exchequer was adding £35 million to the £100 million marketing programme.

Mr Higgins said the 15 per cent to 18 per cent drop was extremely conservative. Dr McDaid rejected this and said Mr Higgins should think of what the situation would be if Ireland had foot-and-mouth. "Not only would the agriculture and agri-food industries have been destroyed but tourism would have been entirely wiped out."