The number of overseas visitors travelling to Ireland increased by 7% in 2011 according to The Irish Tourist Industry Confederation, the first increase in four years.
In its year-end review, the body also says that growth in the numbers employed in the sector returned, with 6,000 jobs added after seasonal adjustments over the last two quarters.
The ITIC estimates that arrivals from Mainland Europe are up 10% while there has been an 8% increase in visitors from North America.
Demand for escorted coach tours from the USA was particularly buoyant in 2011, with numbers above their peak levels of 2007.
In a further boost for the industry, Dublin Port also welcomed a record 87 cruise liners this year.
The ITIC said the industry has proved its resilience but it has warned that it is still a long way off the level of demand enjoyed in 2007, the record year for Irish tourism.
