The number of overseas visits to Ireland fell by 7 per cent in July, August and September compared to the same three months last year.
New figures from the Central Statistics Office (CSO) published today reveal the number of visitors to Ireland during the third quarter was 2,472,000, down from 2,646,000 for July to September 2007.
At the same time, the number of trips taken abroad by Irish citizens rose 13 per cent.
The number of visitors from Britain from July to September fell by 9 per cent to 1,149,000 from 1,269,000, while trips from residents of the United States and Canada showed a fall of 8 per cent to 357,000 from 390,000.
Visits by residents of European countries (excluding Britain) fell by the largest percentage since the third quarter of 2001. The total number of visits from European citizens declined by 4 per cent compared to the same quarter last year from 874,000 to 840,000.
However, on a brighter note, visits by residents from outside the US, Canada and Europe increased by 12 per cent to 126,000 compared to July to September 2007.
The figures indicate that visitors coming to Ireland for recreational reasons was down 11 per cent over the year, while the number of nights tourists spent in hotels fell by 1 per cent.
The number of nights that business travellers spent in hotels declined by 13 per cent during the quarter.
Earnings from visitors to Ireland accounted for €1,734 million while expenditure by Irish visitors abroad amounted to €2,366 million during the quarter, resulting in a net outflow of €632 million.
The number of trips abroad by Irish citizens increased by just over 3 per cent to 2,428,000 from July to September, according to the CSO.
The Irish Tourism Industry Confederation, which represents tourism bodies, said yesterday the outlook for the sector next year was "gloomy", with a 7 or 8 per cent drop in visitors next year likely.
The organisation reported a €200 million drop in tourist revenue and a 3 per cent downturn in overseas visitors in 2008 and called on the Government to reduce VAT for one year to improve competitiveness and boost consumer spending.