Just one in five rooms will be occupied in hotels and guesthouses in the south west this month.
Hotels and guesthouses in Cork and Kerry reported booking levels of 21% for December in the latest survey by the Irish Hotels Federation.
Nationally, hotels are projecting a 72% drop in revenue on average for the first three weeks of December.
The IHF is now calling on the government to review its Covid Restrictions Support Scheme for businesses, as hotels are currently excluded from the scheme.
Chair of the Kerry branch of the IHF, Bernadette Randles, says hotels and guesthouses are also disproportionately impacted by Government restrictions, with disastrous implications for revenue and related employment within the sector.