Fáilte Ireland has said it is optimistic about the prospects for the tourism sector this year.
There is an expectation that business from the domestic and foreign markets will increase in 2012.
However, the agency has warned that there is no room for complacency and said increasing value for money must be the top priority.
Last year saw an increase of almost 6% in the number of overseas visitors to Ireland.
Fáilte Ireland's annual report said this trend should continue once the industry continues to pay close attention to costs.
Ireland is seen as a better value destination than in previous years, particularly by French and German visitors.
Over 70% of businesses have reduced prices while increasing their marketing efforts and Fáilte Ireland said the sluggishness that crept in during the boom has been replaced by an innovative and flexible approach.
Boosting visits from the British market remains a key priority.
The agency is upbeat about the prospects of increasing visitor numbers from the US and continental Europe.
It said there are strong indications that Irish people will holiday at home in greater numbers than ever before in 2012.
