The Government doesn't plan to extend the reduced rate of 9% beyond the end of August.
The Irish Tourism Industry Confederation says a hospitality VAT rate of 13.5% will be "damaging".
It fears the increase will hit regional Ireland hard and could lead to business closures nationwide.
The Government doesn't plan to extend the reduced rate of 9 percent beyond the end of August.
Eoghan O'Mara Walsh - CEO of the ITIC - says businesses will struggle to deal with the increase: