The hotel industry has privately expressed support for introducing a tourist tax in Ireland, provided the government demonstrates how the revenue will be used, according to Fine Gael TD James Geoghegan.
Speaking about “off-the-record” briefings he has received from Dublin hotel operators, Geoghegan revealed that the accommodation sector is willing to implement a hotel room tax if there is transparency about how the collected funds will be allocated.
The revelation suggests a significant shift in the industry’s public stance, with hotels appearing more receptive to the controversial levy than their public positions might indicate.
Estimates suggest that a tourist tax could generate as much as €12 million annually, providing substantial revenue that could be directed toward tourism infrastructure, local services, or addressing the impacts of high visitor numbers on communities.
The proposed levy would likely be applied per room per night, similar to tourist taxes already implemented in major European cities such as Paris, Amsterdam, and Barcelona.
Geoghegan’s comments suggest that while hotels may have reservations about additional taxation, they recognize the potential benefits of a well-structured tourist tax system. The industry’s conditional support appears contingent on seeing clear evidence of how the revenue would be reinvested in tourism-related infrastructure or services.
Dublin’s hotel sector has experienced significant growth in recent years, with occupancy rates and room prices reaching high levels during peak tourist seasons. The industry may view a modest tourist tax as preferable to other forms of regulation or taxation.
The tourist tax proposal has been under consideration by various government departments as Ireland seeks to balance tourism growth with sustainable development and local community needs. Many European destinations have successfully implemented similar levies to help manage tourism impacts while generating revenue for local improvements.
The private support from the hotel lobby could provide political cover for the government to move forward with the proposal, particularly if the industry’s concerns about fund allocation can be addressed through transparent reporting mechanisms.
Despite the apparent industry support, implementing a tourist tax would require careful consideration of collection mechanisms, exemptions, and the specific uses for generated revenue. The government would need to establish clear guidelines for how hotels would collect and remit the tax, as well as demonstrate the direct benefits to tourism infrastructure and services.
The €12 million annual revenue estimate underscores the significant financial potential of such a levy, which could help fund improvements to tourist attractions, transportation infrastructure, or initiatives to address overtourism in popular destinations.