The chief executive of Tourism Ireland has welcomed today's 5% increase in 2003 visitor figures, but noted that revenues grew by just 2.2%.
However, tourism chief Paul O'Toole insisted that Ireland performed very well in the international context.
The Iraq war, the outbreak of SARS and a weak global economy all played a part in suppressing the demand for international tourism last year.
Worldwide tourism fell by 1.2% and Europe's performance was at best flat according to the World Tourism Organisation.
Only Eastern European countries grew tourism faster than Ireland, and that was from a much lower base.
Looking forward to Ireland's prospects in 2004, O'Toole said that Tourism Ireland has invested heavily in the North American market.
Its office in New York office reports strong interest in the island of Ireland in the first two months of the year despite the weak dollar.
The company will also launch extensive marketing campaigns in the UK and undertake new initiatives in the family market during the year.
O'Toole said today: "Growth did not translate to the bottom line for many in the industry, particularly those in the western seaboard who are more reliant on the North American market.
"While that market started to recover last year, we are still a long way off the numbers recorded in 2000," he added.