There are calls for the Government's new 'stay and spend' scheme to be changed to give customers an immediate cash voucher rather than a 'complicated tax rebate'.
As of last Thursday, taxpayers can claim claim a tax credit of €125 (€250 for couples) for spending on holiday accommodation or 'eat' in food and drink in registered businesses.
Hundreds of businesses have registered for the scheme - designed to promote 'staycations' in Ireland - and taxpayers will be able to claim back up to 20% of their spend on food and accommodation.
However, the Sunday Independent reports that changes are being examined as part of discussions ahead of the Budget announcement in just over a week's time.
Chief Executive of the Irish Tourism Industry Confederation, Eoghan O'Mara Walsh, said change would be welcome.
He said: "I think it was poorly designed and flawed from the outset.
"What we really need is an upfront cash voucher per household, so people can redeem it straight away against accommodation offering, a restaurant, or an attraction.
"They'd actually get their discount upfront, rather than doing a complicated tax rebate scheme and not get their money back until next year."
Mr O'Mara Walsh said it's now vital to stimulate activity in the hospitality sector.
He said the UK has had a successful scheme where people 'pretty much got half price meals on certain days of the week'.
He suggested: "It was taken off their bills at the time of consumption, and it worked a treat.
"It was a much more effective way of stimulating a market."
The British government's scheme was in place throughout August, and allowed people to get a discount of up to £10 on food and non-alcoholic drink on Monday, Tuesday and Wednesday.
People could avail of the scheme 'as many times' as they liked.
The Irish tax scheme is set to be in place until next spring, and will run through the Christmas period.
