Concern is said to be growing among hoteliers in Donegal over the looming VAT hike.
The reduced rate was introduced in 2011 in a bid to alleviate some of the financial stresses on the tourism sector during the recession.
As of Tuesday next January 1st, the rate will rise from 9% to 13.5% with critics warning rural communities will be hit the hardest.
Chef and Hotelier Brian McDermott says there are genuine fears that the increase will be disastrous for Donegal:
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