The 40ft high slide is a replica of the ill-fated luxury liner which sank on its maiden voyage to New York in 1912, drowning 1,517 passengers and crew.
It shows the crippled liner sinking with its keel raised high in the air as if it is just about to disappear under the waves.
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Hans BeckOrganisers of the bouncy castle fair in Ibach, Switzerland, defended the bouncy castle, saying it had been popular with visitors.
But Gunter Babler, spokesman for Switzerland's Titanic Club, asked: "Is it ethical to let kids slide down the decks of a blow up Titanic? Hundreds of people died sliding down those decks."
And one visitor said: "It's pretty sick. It's like having a bouncy graveyard.
"No-one could forget that scene from the Titanic movie with all the people sliding down the decks to their deaths. It's very insensitive."
But Franziska Bhend, an organiser, explained: "The tragic Titanic accident happened years ago and those emotions have been dealt with long ago.
"Now people are having fun on the slide and enjoying themselves."
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