Revenues at the Parknasilla Resort and Spa hotel in Co Kerry fell by 5% in 2019, partly due to the hike in Vat for the hospitality sector, managing director Tony Daly said in an interview.
The Vat increase "has had a negative impact on business," he said, even though the hotel didn’t pass on the hike to customers.
"Many smaller businesses, such as restaurants, have closed primarily due to this Vat hike that was ill-conceived by the Minister of Finance," he said.
"The cost of doing business increased across the board in 2019 impacting on operational profit. UK business has decreased due to the weak sterling exchange rate," he said.
Mr Daly didn't go into specifics of the 2019 accounts for the Sneem hotel.
However, figures published for the previous year - of 2018 - showed revenues increased 6% to €8.5m, as the tourism industry across Ireland had a bumper year from domestic and overseas visitors.
Nonetheless, the accounts show the hotel posted a pre-tax loss of €631,480, compared with a profit of over €1.7m in 2017.
Mr Daly said the 2018 loss was due to foreign exchange losses on US loans.
The firm’s cash pile during 2018 decreased to €379,755.
Staff costs in 2018 increased to €2.9m, while staff numbers increased to 94 people.
The hotel was bought in 2012 for €11m by a consortium led by Mr Daly and a Swiss financier who owned a neighbouring island.
Previously, property developer Bernard McNamara paid €40m for the hotel and spent a further €10m on renovations.
Bank of Scotland appointed a receiver to the business in February 2012.