Some tourism businesses are saying 2012 was the best performing year since the beginning of the recession.
That is according to the latest Fáilte Ireland survey, which shows business sentiment is improving but challenges remain.
The hotel sector, particularly in the cities and traditional tourism hotspots, is benefitting from increased activity in the domestic and overseas markets.
But other accommodation providers and the restaurant sector are still challenged.
Fáilte Ireland welcomed improvements in the number of American visitors, and says Europe is holding steady but our biggest market, Britain, remains depressed.