Robert Besser
19 Apr 2025

DUBLIN, Ireland: Dublin's four local councils are joining forces to push for the introduction of a tourist tax, aiming to unlock a new revenue stream amid persistent funding pressures.

The coordinated effort marks a shift in strategy as Dublin City Council, Fingal, and South Dublin County councils commit to a new working group, with Dun Laoghaire-Rathdown expected to follow. The group will seek to build public and political support for the measure, which would require national legislation to implement.

"The overall message is that local authorities aren't particularly well funded... we have to look at other ideas," said Dublin City councillor Seamus McGrattan, who chairs the council's finance strategic policy committee.

While local authorities currently rely on property tax, commercial rates, and rents for income, the proposed visitor levy could provide a significant boost. Though the specifics are yet to be finalised, the charge would likely take the form of a flat fee or a percentage rate applied to tourist accommodation.

The idea of a tourist tax has faced opposition from the hospitality sector, with some hotel groups calling it "groundless." However, supporters argue that similar levies have been successfully adopted across Europe and in parts of the United States, generating funds to support local services and tourism infrastructure.

"Other European countries started doing it, so it sort of looked like a viable option," said McGrattan. "When we looked into it, we saw the success, particularly in some of the American states where it's done, and I think Edinburgh now is the latest city to bring it in."

The plan was first floated two years ago, but McGrattan now senses a shift in the political climate that may make it more feasible.

"Before it was a sort of blank no," he said, referring to national opposition. "But there's definitely a change in tone."

With momentum building at the local level, the group plans to begin lobbying for legislative approval in Leinster House, while also engaging with the public to raise awareness and build consensus around the initiative.