Initial reaction in Tralee and Killarney to their designation as a linked hub in the National Spatial Strategy was one of disappointment.
There had been some expectation that the corridor spanning the two towns might get gateway status, because of its remoteness from the cities of Cork and Limerick.
Mr Michael Daly, president of Tralee Chamber of Commerce said: "Many of the gateways announced today are within commuting distance of Dublin. I thought the whole idea was to attract development away from Dublin."
If hub status was what they had then Kerry would make the best of it, he said. The special designation of Tralee-Killarney together would also help to eliminate old rivalries between the two towns.
"There is a perception that it's always Tralee versus Killarney, and Killarney versus Tralee. Maybe this will help to put it to sleep," Mr Daly said.
Infrastructure would follow the designation, he hoped. Industrial development was also needed. "We need hard industrial jobs," he said.
Mr Jim Finucane, businessman, said the hub/gateway designations was a divisional scale.
"We are either in division one or division two. Tralee should be there along with Sligo. It is one of the largest provincial towns. We must fight to have institutes such as the Institute of Technology Tralee designated a university," he said.
Mayor of Killarney, Ms Sheila Casey (FG), welcomed the designation. Many areas had been left out, she noted. "I look forward to the strengthening of the airport at Farranfore and to the rail and road network," she said."It should put us in line for decentralization."
The Minister for Arts, Sport and Tourism, Mr O'Donoghue, welcomed the identification of the Tralee-Killarney corridor as a strategic hub as a positive development for the county.
"Working together, Killarney and Tralee can capitalise on their combined capabilities to support balanced regional development in Kerry, complemented by other towns and villages ... This will enable the county to become a focus for investment, economic activity and housing development, and will lead to a better spread of job opportunities, a better quality of life, and better places to live in."