The increase in VAT for the hospitality sector will see many businesses who are only making a marginal profit close their doors.
That's the view of Restaurateur John Nevin from Nevin's Newfield Inn.
From midnight, the vat rate in the hospitality sector across the country increased from 9% back to 13.5%.
The news has been met with much disappointment from local restaurant owners, who say they now have no choice but to pass the cost on to consumers.
John Nevin told Midwest Radio's Alannah Nolan that Ireland now has one of the highest hospitality vat rates in Europe, and will see less and less people choosing to holiday at home in the future.....