A NEW tourist tax on hotel stays in Dublin is being developed by the capital’s four local authorities, with the aim of having it in place by September. The proposal, backed by a cross-party group of councillors, is intended to generate additional revenue for public services such as street cleaning and public toilets. While the measure would require national legislation, councillors are pushing for swift progress on what they argue is a necessary response to Dublin’s overburdened infrastructure.
Green Party councillor Hazel Chu, speaking on RTÉ’s Today with Claire Byrne, said the proposed levy has been two years in the making and could bring in at least €12 million a year for Dublin city alone. “That’s 250 extra street cleaners, perhaps 50 public toilets,” she said. “These are all things that we need.” Chu argued that while Dublin residents contribute through Local Property Tax, visitors should also pay their share for using the city’s public amenities.
The levy, which would likely be added to hotel bills, is intended to mirror similar taxes already imposed in many major European cities. Paris, Barcelona and Amsterdam all charge overnight fees, often tiered by accommodation type. In Amsterdam, the combined percentage-based and flat-rate tax now makes it the most expensive city in Europe in terms of tourist levies. Closer to home, Edinburgh is preparing to introduce a 5% accommodation tax from 2026, projected to raise £100 million by the end of the decade.
Despite this international context, the proposal in Dublin has drawn sharp criticism from the hospitality industry, particularly hotel owners.
Minister for Arts, Culture, Media, Sport and Communications Patrick O’Donovan also poured cold water on the idea, saying the “last thing we need to do” is to add more costs for visitors. Tourism Ireland has yet to comment publicly on the proposal, though the agency’s long-standing brief includes promoting the island as good value for visitors. Proponents of the levy argue that the funds raised could be ring-fenced specifically to improve the tourist experience in Dublin, ensuring that visitors see a cleaner, more welcoming city. Critics, however, see it as a blunt instrument that could dampen demand in an already expensive market.
For now, the tax remains a proposal. But with four councils presenting a united front, and given the prevalence of similar schemes in Europe, the idea appears to have some political momentum. Whether it makes it past national objections—and overcomes the scepticism of a powerful hotel lobby—remains to be seen.