IBEC says the Luas strikes due tomorrow and Easter Monday are bad for Dublin and the overall tourist industry in Ireland.
The business group says it is very disappointing to see the stoppages going ahead alongside the centenary of the Easter Rising.
On Thursday, Luas drivers rejected a pay deal of almost 19%, hammered out at the Workplace Relations Commision.
They say trust has broken down with management and they are not happy with the change in salary for new recruits.
Maeve McElwee from IBEC says the new pay deal came after intense discussions and was the best that could be achieved.
She said: "There is a very difficult situation facing Transdev, because they are subject to fines for every day they don’t provide service.
"I think most disappointing to see is the action being taken over the centenary weekend, in reality the fines being incurred by Transdev are no different whether the strike takes place on the public holiday days or any other days.
"Yes, it's very financially difficult and I think it has a huge and very damaging impact on the public