A county-wide local authority team in Dublin is set to develop a long-discussed tax on hotel guests, aiming to establish the groundwork for legislation by September. The initiative has faced opposition from hotels, dismissing the proposal as “groundless” despite its successful implementation in other countries. Dublin’s finance committees are working together to pave the way for a new revenue source, with Dublin City Council, Fingal, and South Dublin county councils already on board and Dún Laoghaire Rathdown likely to join soon.
Cllr Séamus McGrattan emphasized the need for alternative funding sources due to the inadequate funding of local authorities, which currently rely on property tax, commercial rates, and rents. The proposed tourist accommodation charge, also known as a visitor transient levy or hotel accommodation tax, is still under discussion but would likely involve a flat or percentage rate. The shift in political attitudes at the national level suggests a growing possibility of the tax being approved by Leinster House.
The Irish Hotels Federation opposes the introduction of an additional tourist tax, arguing that hotels already make a substantial contribution to the exchequer and local services. In contrast, Edinburgh in Scotland will implement a 5% overnight levy on accommodation costs from 2026 to raise funds for public services and infrastructure. Despite concerns raised by some, proponents like JP Durkan and Cllr Dan Carson see the tax as a necessary step to align with European norms and provide local authorities with more financial autonomy. The ongoing debate highlights the complexities and differing perspectives surrounding the implementation of a visitor levy in Dublin.
