The number of visitors to the Republic increased by 3.4 per cent in the first six months of the year, according to figures from the Central Statistics Office.
Total spending by visitors rose by 4 per cent to €1.74 billion.
The news comes despite warnings from tourism groups earlier in the year that 2002 was one of the worst years on record for the industry.
However, while the half-year figures are up on 2001, that was a period which saw visitor numbers to Ireland plummet because of the foot-and-mouth outbreak.
British tourists accounted for most of the growth in the first six months of this year, up almost 10 per cent.
Visitor numbers from the US and Canada were down in the same period to 373,000 from 433,000 last year. US and Canadian visitors tend to stay longer and spend more than other nationalities.
The Minister for Arts, Sport and Tourism, Mr O'Donoghue, said the latest data confirmed a continuing recovery in the sector.
"While the north American numbers are down significantly, the CSO figures show that Ireland is holding its own in Europe and expanding its appeal in our largest tourism market, Great Britain," he said.
Performance during the peak months of July and August will be the acid test of just how well the industry is coping in a more demanding marketplace, he added.
The Minister's announcement that an additional €500,000 is to be allocated for overseas tourism marketing in coming weeks was welcomed by the Irish Hotels Federation.
