The new Luas route on the Docklands will entice tourists to the proposed Dublin Eye, city councillors believe.
The planned landmark, believed to cost somewhere in the region of €10m, will be located at the Point Village, right beside the O2, close to Ringsend.
News of the Dublin Eye has been given a cautious welcome by Lord Mayor Eimar Costello. She said - "The idea is to get people down to the docks, but I didn't realise it would be as far down as the O2. It does seem a bit far down to me, but maybe if it was further up and nearer to O'Connell Bridge, it would be visually obtrusive."
The new Luas route will be central to the success of the Eye, said Cllr Dermot Lacey. "With a proper transport system, then I don't have a problem with the location."
Plans for the huge observation wheel will be sent to Dublin City Council in the next few weeks.
A spokesperson for the Dublin Docklands Development Agency (DDDA) said - "All of that has to be established before we'll know when it will go in or exactly how much it will cost. One-third of the people who attend the O2 come from outside of Dublin, so there would be a lot of tourists going."
The planned Dublin Eye will have enclosed gondolas and it will be run as part of the Point Village 'concept' with Dublin City council, which will host free rock concerts, markets and screen sports events.