A proposed hotel bed tax in Dublin City Council could have generated an estimated €17.5 million in the year to November 2025, according to figures presented to councillors this week.
According to the Dublin Inquirer, Ross Curley, the council’s head of economic development, told a meeting of the finance committee that officials have begun examining how similar tourism levies operate across Europe. However, he stressed that key design questions remain unresolved, including whether any charge should be applied as a flat nightly fee or calculated as a percentage of room costs, and whether the revenue would be ringfenced for specific projects.
For years, councillors in Dublin have called on central government to introduce legislation enabling local authorities to impose such a tax. Momentum has grown following recommendations from the Dublin City Taskforce in late 2024, which backed the idea of a tourism levy.
Curley noted that most EU countries already operate some form of visitor tax, typically used to fund infrastructure, cultural initiatives, or environmental protection. “It’s the user-pays principle,” he said, adding that such levies can also help mitigate the impact of high visitor numbers.
Examples from other cities were highlighted during the discussion. Edinburgh plans to introduce a 5 percent room-rate charge from July 2026, while Porto applies a €3 per-person nightly fee. Manchester has adopted a £1 flat rate per room, raising £2.8 million in its first year. Amsterdam, which also limits visitor numbers, charges among the highest rates in Europe at 12.5 percent.
Within Dublin, officials outlined a possible tiered system, with higher nightly charges for luxury hotels and lower rates for budget accommodation and hostels. The proposal prompted debate among councillors about fairness and practicality. Green Party councillor Michael Pidgeon argued that percentage-based systems are more responsive to inflation and pricing. “It’s also a bit more progressive,” he said.
Others suggested flat fees may offer greater predictability. “A flat fee allows you to sort of plan,” Curley responded.
Business interests remain cautious. Aidan Sweeney of Ibec warned that additional charges could increase costs for visitors when combined with existing taxes such as VAT and commercial rates. “That has an inflationary effect on prices,” he said.
But support among councillors appears strong. Labour councillor Dermot Lacey argued the hospitality sector has benefited from reduced VAT while increasing prices during major events. “I have no sympathy, whatsoever, for the leading hoteliers in the country,” he said.
Despite ongoing debate, the proposal remains at an early stage, with further analysis and political backing required before any levy could be introduced.
