The number of people planning on visiting Ireland next year is predicted to be the lowest since 2019.
That's according to the Irish Hotels Federation, which is very concerned with bookings for 2023.
60 per cent of hoteliers have reported reduced bookings from the UK, while 47 per cent said they had less bookings from Northern Ireland.
The Irish Hotels Federation says there are huge challenges for hotels and guesthouses in the new year.
It's calling on the government not to increase the VAT rate in the tourism sector, with 94 per cent of hoteliers concerned about the economic outlook.
Roscommon native and President of the federation, Denyse Campbell, says if the VAT rate goes up, it will put Ireland in the top three highest rates in Europe.
She also believes energy costs are a key factor in the decline of bookings.
