The Commission for Regulation of Utilities (CRU) has approved a 9.8% increase in water charges for businesses.
Industry bodies have expressed concerns about the hike, which will come into effect from the start of October.
The Irish Hotels Federation (IHF) said this is just one example of how increased operating costs are undermining the viability of businesses.
“Over a two-year period, the average 70-bedroom hotel in Ireland will have seen an increase of over 40% in water tariffs,” said Michael Magner, IHF President.
“This is unsustainable given the exceptionally challenging environment in which hotels and other hospitality businesses are currently operating.”
According to Mr Magner, the hospitality sector is disproportionately impacted by increases in water charges, which he said businesses are unable to absorb.
“The cumulative impact of these and other cost increases now poses a serious threat to the viability of many businesses through our wider tourism and hospitality sector.
“It is now imperative that the Government tackles these increases head on and delivers targeted measures to enhance cost competitiveness and support business viability,” he added.
Mr Magner said the industry is particularly concerned about the potential for further annual increases through to 2029.
“We are calling for a fairer funding model that supports the long-term sustainability of Irish water services, while maintaining cost competitiveness for SMEs,” he added.
In its decision published yesterday, the CRU said the increased water charges are necessary to ensure the reliability, efficiency and sustainability of water services.
