A survey conducted by Support Your Local found that 70 per cent of respondents had increased business over the Christmas period, compared to the same time the previous year.
The group surveyed nearly 600 pubs, restaurants, hotels and independent off-licences, two in three of which posted better results than in 2013 as the sector improves.
To cope with the increased business, nearly half (47 per cent) took on extra staff over the festive season.
Additionally, 64 per cent responded positively when asked if the Government’s decision not to increase excise duty in the budget had a positive effect on Christmas trading.
Bart Storan, Campaign Manager of Support Your Local, said the survey results showed that people are returning to nights out and socialising, not just over the Christmas period but in general.
"While this survey focused on the Christmas period, which saw a marked improvement in trade compared with last year, an important consideration in 2015 is how we can sustain this growth," said Storan.
He emphasised the importance of the Government keeping the attractive 9 per cent VAT rate where it is, as it is injecting confidence into small businesses to increase their operations in 2015.
"The hospitality industry is one of the few industries that has presence in every town and village across the country. The Government must continue to support jobs in this industry in 2015 to help mitigate against two-tiered recovery," he concluded.
The Support Your Local campaign, started last year, is designed to highlight the significant financial and social contribution made by the Irish drinks industry.
