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.
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.