Just over €300,000 has been claimed by customers under the Stay and Spend Tax Credit initiative - despite the Government setting aside €250m for the scheme.
The initiative aims to encourage people to stay in Ireland over the autumn, winter and summer months and spend money in the hospitality sector.
However people haven't been able to spend their money due to rolling restrictions.
Labour TD Ged Nash says there is a better way to stimulate the economy.
"One way would be to waive the tax bills that 420,000 workers who were on the Temporary Wage Subsidy Scheme received last weeks.
"Most of those workers would owe €600-€700, it's a relatively small amount of money, but it would achieve the same thing that the Stay and Spend scheme was supposed to do and that's stimulate local economies."
