Fáilte Ireland has predicted Irish tourism will grow by 6% by the end of 2016.
The agency estimated the increase could amount to €8bn in total tourism revenues and that jobs will be created in the sector, according to its annual Tourism Review.
Last year, the industry was worth €7.8bn to the economy with €1.8bn going in taxes to the Exchequer.
7.3 million foreign visitors holidayed in Ireland in 2015, an increase of 11% on 2014.
Although the outlook is positive, the tourism agency said that continued growth depends on competitiveness.
It is also asking for the acute shortage of hotel bedroom stock in Dublin to be addressed and is concerned about external factors such as currency exchange rates which are currently favourable to American and British tourists.