Recent enforced changes to payroll will cost tourism businesses 450 million euro this year.
A report from the Irish Tourism Industry Confederation says the sector is the biggest regional employer in Ireland and faces an uncertain future.
It's calling for the Government to reduce the VAT rate to 9 per cent in an effort to offset the rise in minimum wage and other employee benefits.
The Confederation's CEO, Eoghan O'Mara Walsh, says many of its members face being wiped out this summer