The ferry line has ploughed millions into the economies of Swansea Bay and Cork and Kerry.

But the company said yesterday it could not find a replacement for its ship the MV Superferry, so services would not run this year.

The company is laying off 30 staff but said it hoped to resume sailings in 2008.

The Swansea-Cork service, which runs between March and October, brings thousands of tourists to the Republic of Ireland and South Wales. South Wales superstores in particular have profited from the ferry link as Irish customers take advantage of cheaper British prices. And restaurants, B&B, hotel and camping businesses on both side of the Irish Sea have been given a huge boost by the regular sailings.

Authorities in the Irish republic estimate the Cork and Kerry region profits by 35 million euros a year due to the ferry service.

The ferry company sold its 35-year-old ship last October after a £6m offer for it and set aside £22m for a new one but it has failed to secure a replacement to operate the route.

A company spokesman said the decision to suspend the service throughout 2007 was taken with great regret.

He said, "It is ironic that the service has had to be suspended at a time when the market indicators suggest an upturn in ferry travel.

"It is our ambition to resume the service in 2008 and we would like to sincerely thank our staff for their commitment to the service and our passengers over the years for their support."

Leading Cork business figures have called on their government to step in and secure the future of the ferry company.

Industry sources said that as well as there being a shortage of ferries on the European market, any ferry serving the Swansea-Cork route required specific characteristics to enter Swan-sea Port, making the buying process even more difficult. Swansea council leader Chris Holley said, "News that the service has been suspended is highly regrettable. Swansea's services to Ireland have been used by many thousands of passengers over the years thanks to reduced driving times between the two countries and the ease of access in the city to the embarkation point.

"The council will work hard with its partners to minimise the impact on local staff and suppliers.

"The council is keen to meet with the operators to seek further information about their plans for 2008 and to discuss with them any ways in which we as an authority might be able to support them in seeing the return of the service as soon as possible."