The Government announced the rule just hours after clubs were allowed to welcome party-goers back to the dance floor for the first time since the start of the pandemic.
The Buttermarket in Shrewsbury was a scene of joy and delirium in the early hours of Monday morning, but Prime Minister Boris Johnson's announcement soon brought the industry back down to earth.
Martin Monahan, owner of the club, is concerned that the rules discriminate against bigger venues.
He said: "To put that out on a day when people were thinking they might be able to turn their business around, it was another kick in the teeth for the hospitality industry. It is what it is and we will work with whatever is enforced.
"If every business had to do this and it was a way to control the pandemic, then we would work with the Government and the whole hospitality industry would make it happen."
It is unclear whether smaller, mixed-use venues, which operate as clubs at night but as pubs or restaurants in the day, may be able to sidestep the rules due to not being solely a nightclub
Mr Monahan said: "My concern is that this is yet again discriminating against larger venues which have the benefit of larger spaces.
"It means there will be a two-tiered system; those venues where you don't need a passport and those where you do.
"And what happens to those people who aren't able to get vaccinated? It's discriminating against them."
He added: "We, as a venue, encourage people to get a vaccination as soon as possible."
Latest figures show 35 per cent of 18 to 30-year-olds have not had their first jab.
Currently nightclubs and other crowded venues are only encouraged to ask clubbers to show proof of vaccination, a negative test result or immunity.
Boss of UK Hospitality Kate Nicholls called the announcement "a hammer blow" for a struggling industry trying to rebuild.