The number of trips to Ireland by overseas residents was down by 18.5 per cent in March compared to the same month last year, according to the latest figures.
Some 434,200 trips were made here from overseas during the month, down by 98,600 on March 2009.
Overseas travel statistics published by the Central Statistics Office show the number of visitors from Britain was down by 21 per cent to 212,700.
Trips to Ireland by residents of other European countries and North America were down by 23 per cent and 2.5 per cent respectively. Trips from other areas, including Australia, Japan and South Africa, increased by 3,100.
Irish residents made 543,100 overseas trips in March this year, down 3.7 per cent on the same month last year.
The period from January 1st to March 31st accounts for approximately 20 per cent of overall visitors each year, according to the all-island body Tourism Ireland.
It said the first quarter of this year had been “extremely difficult” for the industry and the figures reflected the impact on tourism businesses across the island.
A spokesman for Fáilte Ireland said that while the overseas figures were disappointing, the indications were that there had been a drop of at least 7 per cent in the number of Irish people travelling overseas which showed "some very good potential".
"We would expect that to rise, because we believe at least anecdotally and even from some of our research that a lot of Irish people will be holidaying at home this year. We haven't taken our foot off the accelerator and we have a multimedia home-holiday campaign in progress. We will be continuing to promote value and things to see and do in Ireland and we will be ramping it up in the near future.
"Whatever about the overseas visitor activity, there is some potential to minimise the damage there through the home holiday market and we will be chasing every opportunity there is out there."
He said March to September was the "battlefield" for tourism and that Fáilte Ireland would do all it could to make sure Irish people were aware of the value and the options available at home.
Tourism Ireland chief executive Niall Gibbons said the effect of the world recession on consumer spending had hit visitor numbers.
“And, as well as the poor economic climate, the difficulties around the volcanic ash plume which closed airports here and in major markets have been a major additional concern,” he said.
“Quite apart from the ash, air access (i.e. November to March) to the Republic of Ireland dropped -18 per cent this winter when compared to the same period last year as airlines reduced departures and frequency.
“This meant a substantial drop in available access opportunities for potential visitors to Ireland this spring.”
Mr Gibbons said there was still “everything to play for” as over 60 per cent of overseas holidaymakers visit Ireland between May and September.
He said Tourism Ireland had a comprehensive promotional programme underway around the world, working in close cooperation with the industry across the island of Ireland as well as with international tour operators and major air and sea carriers.
“Our campaigns are highlighting the great value on offer as well as compelling reasons to choose Ireland over the 200 other destinations all competing for business.”
Trips from overseas in January and February compared to the same months last year were down by 26 per cent and 25 per cent, respectively.
Minister for Tourism Mary Hanafin said that while at face value the figures were disappointing, they must be understood in the context of a decline in tourist numbers internationally.
“Tourism worldwide has been deeply affected by global economic difficulties and loss of consumer confidence, with Ireland particularly hit by exchange rate challenges,” she said.
She said Tourism Ireland would invest “a minimum” of €12.8 million on promotional and marketing activity this year in Britain and was targeting a return to growth from this market by the end of the year.
Figures from North America had “held up quite well” and visitors from other long-haul destinations showed an increase of 11 per cent compared to the first three months of 2009.
“Earlier this month I launched a €20 million summer marketing campaign on behalf of Tourism Ireland.
“This campaign will build on Tourism Ireland’s marketing effort earlier in the year and is designed to win as much business as possible for the peak season. This unprecedented drive in key markets in Great Britain, the United States, Germany and France aims to create the conditions for recovery later this year.”
The Minister said the opening of the National Convention Centre in Dublin in September would further enhance capacity to attract international events.
The Department’s overall tourism budget for this year is over €153 million, an increase of 3 per cent on 2009, she said.
Fine Gael's spokeswoman on tourism, Olivia Mitchell, said the figures showed Ireland was losing 3,500 visitors a day.
She noted there were 317,400 fewer visitors to Ireland in the first quarter compared to the same period in 2009.
"March is supposed to herald an upswing in the number of tourists coming here with the St. Patrick's Festival forming the centrepiece of the month," she said.
"The industry cannot possibly survive losing 100,000 visitors a month."
Ms Mitchell said Minister for Tourism Mary Hanafin "talks a good game" but that action to reverse the trend in Irish tourism had not been forthcoming.
"Immediate measures are needed. As a result of currency fluctuations, the cost of coming to Ireland has decreased for people in the UK. I believe that marketing budgets need to be redirected to focus on potential visitors there."
Ms Mitchell said the Government should also abolish the Departure Tax, which was "hurting tourism badly".