The results - from the Great Britain Tourism Survey (January-December 2011) – are the highest recorded for Wales since the Survey began in its current form in 2006.
Last year the total number of trips to Wales increased by 11.9% - from 8.67million in 2010 to 9.70million while the related expenditure increased by 20.6%, from £1.4billion to £1.7billion.
Business Minister Edwina Hart welcomed the figures which are published today and said:
"These are encouraging figures and positive news, The task now is to improve on these figures. I have therefore allocated an additional £850,000 for the Visit Wales UK campaign to promote holidays in Wales during 2012."
Holiday trips accounted for 62% of all visits to Wales in 2011, an increase of 4.8% while expenditure rose by 17.2% compared with 2010. The average spend per night was approximately £50 in 2011 compared with £44 in 2010.
Dan Clayton Jones, Chair of the Tourism Sector Panel, said the figures reflected the continued hard work of the tourism industry in Wales, but he warned against complacency.
"This is only one set of figures. Wales’ marketing and product development will need to improve if the growth shown in these figures is to continue."