Dublin is considering introducing a tourism tax that could bring in ‘significant’ funding.
At a press conference on Tuesday, Michael Martin, the head of the Irish government, said he was backing the proposal made by the Dublin City Taskforce, which said last year that the city has become ‘less welcoming’ since the financial crash.
‘It could provide additional revenue raising powers, so that will be examined. Because, let’s be honest, there’s going to be significant investment here’, the Taoiseach said.
He added that the actual amount of money expected to be brought in varied widely, depending on the rate applied if the tourism tax comes to pass.
‘It will be examined in more detail. Estimates varies between depending on rate of fee applied, it would range from four million to 41 million.’
But Martin claimed that no matter what rate the city lands on, ‘there’s going to be significant additional expenditure to make the city more attractive.’
Dublin is already considered one of the most expensive cities in Europe for eating and drinking, and there are fears that the proposed tax will further burden tourists visiting the already expensive city.
Simon Harris, the deputy leader of the Irish government, said that the plans were far from set in stone, and that Dublin City Council will have a significant role to play in deciding whether to implement it.
He said: ‘Fundamentally, I believe, massively in local government, empowering councillors and providing revenue streams, there needs to be a sensitivity around the timing.’
Cities across Europe are beginning to place daily taxes on visitors. Rates vary from just a few cents per day to up to €7 per day in places like Rome.
In the UK, Manchester is the first and currently only British city to charge a tourist levy, requiring visitors to pay £1 per day in hotels or rented flats in the centre of the city.