The 50pc VAT increase to 13.5pc on the hospitality industry last year contributed to revenues declining by 5pc at one of the best-known four-star hotels in the country, Parknasilla in Co Kerry.
That is according to the managing director of the hotel, Tony Daly, who said that the VAT increase "has had a negative impact on business".
Mr Daly said the hotel did not pass on the VAT hike to customers "and our revenues for 2019 have taken a 5pc decrease as a result".
He added: "Many smaller businesses such as restaurants have closed primarily due to this VAT hike that was ill-conceived by the Minister of Finance."
He continued: "The cost of doing business increased across the board in 2019, impacting on operational profit. UK business has decreased due to a weak sterling exchange rate."
Mr Daly was commenting on new accounts for Parknasilla which show that the hotel's Silork Ltd recorded an operating profit of €1m in 2018.
This followed revenues increasing by 6pc, to €8.5m from €8m.
Mr Daly said: "2018 was a bumper year for tourism throughout Ireland.
"Our revenues increased significantly during the full season. International business was consistent and domestic business grew, aided by a beautiful summer."
Silork recorded a pre-tax loss of €631,481 and Mr Daly said this was due to a €1.6m unrealised cost that does not impact on the operation.
Staff costs increased to €2.9m as numbers employed rose to 94 from 90.