Dublin tourist tax moves a step closer

Samuel Backett Bridge, River Liffey, Dublin.

© Shutterstock

Samuel Backett Bridge, River Liffey, Dublin.

© Shutterstock

http://www.falstaff.com/en/nd/dublin-tourist-tax-moves-a-step-closer/ Dublin tourist tax moves a step closer Finance chiefs in Irish capital likely to back new hotel charge. http://www.falstaff.com/fileadmin/_processed_/f/2/csm_Dublin_river_shutterstock_10aa84c69b.jpg

Plans to introduce a hotel tax in Dublin in a bid to raise much-needed cash for the Irish capital are likely to be backed by the city council.

The proposals are set to go before the city’s finance committee, with indications that a one per cent rate levied on all hotel accommodation in Dublin would receive widespread approval. However, a recent report that says the tax would raise in excess of €12million per year, also highlighted that the council does not have the powers to introduce the tax, with a government bill required, a move likely to receive strong opposition in the Dáil (Irish parliament). 

Similar charges have been implemented in cities such as Paris, Berlin and Vienna, but Irish tourism chiefs claim it would drive Dublin businesses into insolvency. The Irish Tourism Industry Confederation (ITIC) says it would cause more inflation and leave Ireland a less attractive place for visitors.

The €12.2million raised over a year is based on an average occupancy rate of 78.5 per cent and an average daily rate of €171 – a two-night stay at €171 per night would cost an extra €3.42, or around €12 for a week’s accommodation.