The town has suffered from the recession like many other Irish towns with the closure of many businesses and its two hotels.
But the millionaire singer hopes the centre, which opens on May 6th, will help to revamp the area.
The 50 year old entertainer was speaking as he visited the new centre for the first time.
“Like many others towns in Ireland, Dungloe has taken a hit in recent times.
“Every area needs to bring something to it. I saw the visitor’s centre the last day and it was great for me to see.
“It looked like the town is having a rebirth, even with this, and I hope this will bring a bit of new life to the town,” he said.
The man behind the Daniel O’Donnell Visitor’s Centre has revealed that there is already huge interest in the plan.
Pat ‘Nora’ Gallagher said there’s not question thousands of people will flock to the centre from this summer.
There has already been enquiries from Ulster Bus Tours who arrange large tours.
“A lot of people often fail to realise just how popular Daniel is. He has just played his 3,200th show and has been seen by more than one and a half million people.
“There is a lot of interest in the centre and hopefully that will be reflected in the number of visitors who come to Dungloe and to Donegal to see the centre,” he said.
Admission to the visitors centre will be €5 and Mr Gallagher says it will be “a real a to z of Daniel’s life.”
“It will have more than 30 gold discs, Daniel’s wedding suit, the red This Is Your Life book, a video on his life and numerous other items,” he added.
The centre will even have a small restaurant called Daniel’s Bistro.
“We’re looking forward to a great day on the opening and hopefully Daniel will sing s few tunes,” said Pat Nora.