The vast majority of Irish hotels and guesthouses say they have seen an upturn in business in the first six months of the year.
The Irish Hotels Federation (IHF) says 83% are also reporting an increase in advance bookings for the summer season.
79% say there has been an increase in domestic visitors compared to last year, while overseas visitors are up 12% in the year to date.
The IHF says people taking breaks at home is "vital for regional tourism and provides a boost for businesses that rely on the home market, particularly outside of the larger urban areas and traditional tourism hotspots."
Bookings are up year on year across all key markets - including North America, Britain and the rest of Europe.
Visitor numbers from Britain are up 10%, those coming from North America are up 14%, while tourists from the rest of Europe are also up 14%.
Business tourism is another area of growth - and 65% of hotels catering for corporate meetings are seeing an increase in business.
87% of hoteliers say they now have a positive outlook for trading conditions over the next 12 months.
Some 85% say they plan to invest in refurbishment and increased capital expenditure over next year, but 28% remain concerned about the viability of their business.
One of the main challenges highlighted is the high cost of doing business in Ireland - with hotels and guesthouses citing "excessive local authority rates" as the single most pressing issue on cost competitiveness.
