Preliminary figures issued yesterday by Bord Failte showed that, in 1999, Ireland had just under six million overseas visitors who spent £1.8 billion during their stay.
There was, however, a warning that litter problems and questions of value for money were tarnishing Ireland as a destination for some Europeans.
Both numbers and revenue showed an increase of 7 per cent on the previous year. A Bord Failte spokeswoman said yesterday definitive figures would not become available until March.
Bord Failte's chief executive, Mr John Dully, said tourism growth would continue in 2000, thanks in part to the peace process in Northern Ireland. A single company would now be set up as part of devolution to market both parts of the island. Mr Dully said Bord Failte looked forward to embracing this development as "our small part in furthering good economic partnership with the North".
Addressing a gathering of the industry in Dublin, Mr Paul O`Toole, general manager of central marketing with the tourist board, warned that Ireland had lost its fashionability in the French and German markets as a place to holiday.
Tour operators have blamed the litter problem and the summer overcrowding of destinations such as the Ring of Kerry.
Mr O`Toole said Germans considered Ireland to be poor value for money, and the French thought it was only fair value. On the other hand, he added, the strength of British and US currencies against the euro was working positively in Ireland's favour. Britain and the US considered an Irish holiday good value for money.
Bord Failte has a target of 6 per cent growth in 2000. "It's not the double-digit prediction of previous years, but circumstances have changed. The base is much bigger now and it's simply not possible to achieve that level of growth year on year," Mr Dully said.
Bord Failte said a feature of 2000 was likely to be more competitive fares among the Irish Sea ferry operators. The Minister for Tourism, Dr McDaid, sent a message to the gathering that the £150 million tourism marketing fund provided in the National Development Plan would be used to consolidate and enhance "our enviable position". A further £100 million is to be spent on training in the tourist industry to help address the problem of skills shortages.
"These are historic times," Dr McDaid added. "Northern Ireland's changed political landscape will see the economic and social benefits of peace spread throughout the island.
"We look forward to building on the excellent relationships with our industry colleagues and partners in Northern Ireland and maximising the opportunities for all the people of this island".