The Small Firms Association (SFA) has called on the Government to provide financing for free tourist flights into Ireland to bolster falling visitor numbers.
Speaking on RTÉ's Morning Ireland, SFA director Mr Pat Delany said up to €40 million is being lost every week due to the decline of foreign visitors. He said numbers have fallen by up to 5,000 people per week.
"Even if we have to offer free flights and ferries into Ireland it would make more sense than having substantial investment in hotel infrastructure being under utilised," Mr Delaney said.
He said the cumulative loss by the end of September will be around €400 million.
He said many small operators are "facing ruin" as a result of the decline in US tourism numbers prompted by uncertainty in the US economy and strengthening of the euro.
But he denied elevated prices in the catering sector were keeping people away.
The SFA is also calling for tourism marketing to be focused more on Europe.