Irish News - Dublin Looks to Introduce Tourist Tax by September to Fund City Services

A tourist tax on hotel stays in Dublin could be implemented as early as September, as the city’s four local authorities unite behind legislation to introduce the measure.

The proposed tax would see visitors charged an additional fee on their accommodation bill, with the goal of using the funds to improve essential public services across the city and county.

According to Green Party Councillor Hazel Chu, who has been pushing for the levy, the initiative has been two years in development and has received cross-party support.

“Locals pay Local Property Tax. Tourists should contribute their fair share too,” she said, speaking on RTÉ's Today with Claire Byrne.

Estimated €12 Million in Revenue for Dublin City Alone

While the exact revenue potential remains unclear, early estimates suggest the tourist levy could bring in at least €12 million annually for Dublin city alone.

Cllr Chu said that would be enough to fund:

250 additional street cleaners
50 new public toilets
And potentially investments in tourism infrastructure

“These are all things we badly need,” she added.

She also argued that many other European countries already implement similar taxes, and that improved facilities would enhance Dublin’s appeal to tourists.

Industry Pushback from Hotel Sector

However, the proposal has faced strong criticism from the hospitality sector. Micheál Lennon, Director of Dublin’s Skylon Hotel, said the move is unnecessary and could harm Ireland’s competitiveness.

“We already pay 13.5% VAT. Adding more charges makes Ireland less attractive as a destination,” he warned.

Lennon believes the focus should instead be on smarter budgeting by local councils, rather than introducing new taxes.

“We’re funding tourism well. We don’t need to copy every EU country,” he said.

A Sustainable Tourism Strategy or a Burden?

Cllr Chu countered that many of the issues that impact a tourist’s experience—dirty streets, lack of toilets, and poorly maintained public areas—are the result of underfunding, which this tax could help address.

“If you're a visitor walking around on a sunny day, you may ask: why not go somewhere else in Europe that offers better public facilities? Those places fund them with a tourist tax.”

She insisted the charge would be modest and targeted solely at visitors, not hoteliers.

Chu also highlighted the broader issue of local government financing, arguing that councils are too reliant on central Government and must be empowered to raise funds independently.

“We rely heavily on corporation tax and government handouts. That’s not sustainable,” she said. “Either the Government funds our cities properly—or we raise it ourselves.”