People are deliberately avoiding Killarney, Co Kerry, because of "chronic traffic congestion" which the town's Chamber of Tourism and Commerce has warned "is having a hugely negative impact on business".
The body is demanding action on a number of stalled roads projects.
The town's mayor, Maura Healy-Rae, has convened an emergency meeting to discuss the issue tomorrow morning.
Substantial delays are being experienced by tourists and locals on all routes in and out of Killarney, including to the Killarney National Park south of the town, as well as on the N22 Cork-Tralee bypass.
In a statement, the chamber has now warned that 'traffic chaos" is worse than ever, which is hitting businesses and the quality of life for residents.
It "is now the biggest single issue for the town to contend with and it needs to be addressed as a matter of absolute priority," the chamber said.
Local businesses are urging the Department of Transport, as well as Transport Infrastructure Ireland (TFI) and the Road Safety Authority (RSA), to immediately identify the preferred route for the new N22 Farranfore-Killarney project.
In 2003, a route corridor was identified but the project was suspended.
In 2019 Kerry County Council and TFI reviewed the scheme.
However, five years later the project appears to have stalled once again with a route yet to be selected.
"Killarney Chamber of Tourism and Commerce has urged Kerry's TDs and senators to use their access to the minister and department officials to demand that they deliver progress on the N22 project - for starters," the chamber said.
"The chronic, daily traffic back-up in Killarney town centre and on all the approach roads has now reached crisis proportions."
Measures it is calling for include gardaí taking up point duty on a regular basis at key roundabouts, work to be undertaken on a number of link roads within the town, more parking options including a multi-storey car park, and mobility hubs so that commuters can leave their cars on approach roads and avail of electric bus transport.
