Micheál Martin made the comments as a legal injunction is sought by Athlone Municipal District to stop it.
The Tánaiste is defending the Department of Integration's methods of engagement on an accommodation centre for 1,000 asylum seekers planned for Westmeath.
Yesterday, Athlone Municipal District decided to seek a legal injunction to stop the development of temporary dwellings for asylum seekers in Lissywollen.
Local representatives claim the Department had not listened to their concerns and had rejected a proposal to make use of facilities already in place for a capacity of around 450 International Protection Applicants.
Minister Micheál Martin says the purpose of State-led asylum seeker accommodation is to preserve tourism and facilities in local towns:
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