Latest figures from the Welsh Government show almost eight out of ten hotels rooms across Wales were occupied in August.
In the first eight months of this year the number was up on 2014.
Guesthouses and B&Bs also saw increased business but there was a drop in the number of people holidaying in static caravans.
More visitors are coming to Wales and, per person, they are spending more than last year.
That is according to the second annual report on tourism.
During the first quarter of 2015 the total volume of overnight trips to Wales was 1.62 million That's up by 7 per cent up in comparison with the first three months of 2014.
In January-April 2015, average spend per day trip in Wales was higher than the average in the first four months of 2014.
In 2015, 46 cruise ships are scheduled to visit Wales – a 94% increase year on year, with 22,500 passengers and an economic impact of £2.9 million.
Tourism in Wales is in a strong position. Two years into the ambitious tourism strategy, ‘Partnership for Growth’ we are seeing that public sector leadership and support, driven by private-sector investment and innovation, is helping to put Wales ahead of the competition.
The Commons Welsh Affairs Committee has today called for more to be done to encourage international tourists to visit Wales.
In a report the committee claims Wales lacks a 'coherent brand' for the overseas market, and must be marketed more vigorously.
A spokesperson for the Welsh Government however said current strategies were delivering strong results for Wales.
Most recent international visitor and inward investment figures for Wales speak for themselves and demonstrate that our current strategies are delivering strong results for Wales.Figures released today reveal a very significant increase of 21% in the number of international visitors to Wales in the first six months of this year.
Our approach to marketing Wales overseas has been refocused and now concentrates on the three key markets identified as having the highest potential for growth - Germany, USA and Ireland.
The way Wales' multi-billion pounds tourist industry is organised is being criticised by a group of MPs.
The Commons Welsh Affairs Committee says Wales is being undersold, and is concerned that the country still has a low profile overseas compared to other parts of the UK.
According to a report published by the Committee today, Wales attracts the third smallest number of international visitors of any UK region.
The committee is calling on both VisitBritain and VisitWales to develop a new strategy by February next year.
Wales has some of the most spectacular landscape in Britain and Europe, a unique culture, language and history, dynamic cities, and offers a range of activities and a high quality of life.
The tourism bodies responsible for promoting Wales need to grasp this opportunity and maximise Wales' potential as a destination.
The Welsh capital is the third best British city when it come to a value-for-money short break, according to a TripAdvisor survey.
It compared the cost of two people having a one-night stay in a four-star hotel in the month of August, with the overall cost figure including a pre-meal cocktail, a meal out and a short taxi ride.
- 1. Sheffield: £154
- 2. Birmingham: £166
- 3. Cardiff: £173
- 4 Newcastle upon Tyne: £176
- 5. Bristol: £180
- 6. Leeds: £184
- 7. Liverpool: £190
- 8. Nottingham: £199
- 9. Manchester: £200
- 10. Belfast: £204
Tripadvisor says the most expensive out of 20 cities compared was Edinburgh at £331. London was 18th in the list at £267
As the children start their summer break you may be looking for holiday ideas - well you might want to look closer to home. Visiter numbers to the capital city are booming. Nicola Hendy's been finding out why.
65 Welsh beaches were crowned winners of international awards and ranked amongst the best in the UK and across the world.Read the full story ›
Jeremy Parr, from Natural Resources Wales, told ITV News the quality of Wales's beaches was important for tourism.
Welsh beaches have been ranked among the best in the UK and across the world with 34 achieving Blue Flag status and 31 obtaining Green Coast Awards.
Pembrokeshire is home to some of the best beaches, winning 10 Blue Flags, followed by Gwynedd with eight and Anglesey with six.
The beaches were judged on criteria including cleanliness, water quality and safety.
Natural Resources Minister Alun Davies says:
"The awards demonstrate the high standard of Welsh bathing water quality and reflect the diversity of our beautiful coastline, which is enjoyed by our communities and the millions of visitors to Welsh beaches each year.
"These awards also recognise the hard work of everyone involved in achieving and maintaining these high standards."
It's an ancient landmark that has shaped Wales and recently Offa's Dyke was voted one of the top ten walks in the world. Now there's a push to get towns and villages running alongside the National Trail doing more to welcome walkers. Mike Griffiths reports.