A local businessman fears the tourism potential of the Mournes and the wider area is being undermined by the 20 per cent VAT businesses are forced to pay.

Restaurateur Bob McCoubrey believes more should be done to help the area’s hospitality industry.

He says a “common sense approach” needs to be adopted to help local businesses, especially bars and restaurants, which rely on both local people and passing trade, to prosper in the current economic climate.

The Newcastle man, who founded the Mourne Seafood brand six years ago, and has gone on to open a further two restaurants in Belfast and a cookery school – says the 20 per cent tax is particularly hard on rural businesses.

Currently, the Dundrum restaurant opens three days each week, and Mr McCoubrey explained that it will open more often during busy periods, such as Easter and the summertime.

Last week on social network site Twitter he told his followers he had to turn away diners because of the Dundrum restaurant’s limited opening hours.

‘Had to turn away six tourists in Dundrum - hate to do it but with VAT at 20 per cent we can only trade when we know we will be busy,’ he tweeted.

Unaware the restaurant operates seasonal opening hours, the visitors had travelled to Dundrum especially to dine in Mr McCoubrey’s restaurant.

The businessman has called on local politicians to take up the case of rural businesses.

With lower VAT rates in the Republic and throughout Europe, he fears the UK rate is having a crippling effect on some smaller businesses.

With 80 employees, and an estimated turnover this year of £3 million, Mr McCoubrey says he is fortunate that his Belfast businesses are so buoyant. He is even considering opening a Dublin branch, where the nine per cent tax in the Republic is more manageable.

“If you go 40 miles south of Dundrum the VAT is a lot lower,” he said. “In places like France it’s just over five per cent while in Spain and Portugal businesses pay seven per cent.

“In Dundrum we turn over half a million per year so 20 per cent on that is quite a bit,” he said.

“It really is a matter of doing the sums. I really feel for those businesses which only have one branch, thankfully our Belfast premises can open 52 weeks in the year, whereas Dundrum is more seasonal. Even the rates in Dundrum are on the same scale as what we are paying in the city – it’s very unfair, there really should be some leniency.”

Pointing out that “tourism is the hope for the future,” Mr McCoubrey said the industry “really needs something radical done to get it back on its feet.”

“This area is one of the gateways to the Mournes and government and the Tourist Board should get their heads together to think of ways of helping businesses, especially the smaller and rural ones which are naturally finding things tougher. We need to see an upward spiral, rather than a downward one, when it comes to this industry.”

Emphasising that he remains positive about the industry his livelihood depends on, Mr McCoubrey added: “I just wish everyone with a bit of clout could see the potential the Mournes has.

“I want policy makers and those who have the final say on what and where money should be spent to take advantage of that and make the most of this area, helping local businesses in the long run.

“I suppose I am just annoyed that nothing is being done to make the most of this area. For example, Dundrum has three restaurants, Newcastle has some great hotels, but when it comes to accommodation in the village, there are a total of five rooms. There should be more done to help provide accommodation to suit all pockets.

“Granted, restaurants and other premises have their regular customers but, when you live in an area that relies so heavily on tourism, that passing trade is crucial. It can just be very demoralising at times and that’s why our MLAs should be fighting our corner.”