Dublin city council has given the green light for a fresh look at implementing a hotel bed tax in Dublin.
The consultation is anticipated to consider how a visitor levy could be collected and who should have to pay.
The local authority has stated an influx of tourists puts pressure on services with funding required to cover increased costs.
But Aidan Sweeney from IBEC said the council needs to be looking at all possible revenue streams.
He said: “The Government is doing a sustainable mobility study at the moment and they’re talking about a congestion charge for Dublin.
“That hasn’t appeared here, so what are we doing on terms of looking at future funding stream for the city and this is what’s important, not just being side-tracked by an issue.”