Councillors from both government and opposition parties have agreed on the need to introduce a tourist tax for Dublin.
Legislation brought forward by Fianna Fáil TD Paul McAuliffe allows all four of Dublin’s local authorities to introduce a tourist tax if they see fit.
The Dublin North-West TD has been in favour of Dublin’s local governments being able to charge tourists, with that money then put back into the capital’s coffers.
McAuliffe, a councillor for the Ballymun-Finglas area prior to his election to the Dáil in 2020, said that Dublin City Council currently invests well into Dublin’s tourist industry, noting events such as the St. Patrick’s Festival, college football events, concerts and international sporting events.
However, McAuliffe said the high level of tourism in Dublin “comes at a cost” and local councils should have the power to profit off tourists who visit the city.
This week, research from University of Galway found that if Dublin City Council introduced a €5 charge per person per night, it would raise €46 million.
McAuliffe said that his plan had support from both government and opposition parties, and this was proven at this week’s special meeting of Dublin City Council.
A motion by Green Party councillor Janet Horner said that a tourist tax was needed, with councillors from both government and opposition camps in favour of the proposal.
The North Inner City councillor noted that the idea of a tourist tax was one that Dublin City Council has held for many years, and the idea has only reached the Dáil chambers within the last year.
“We have struggled to get the government to get out of our way so we can make the decisions that we feel are best for our city,” she said.
“Tourists get excellent value out of Dublin City Council; we have free museums which isn’t the norm across Europe, we have world-class parks, and we have cheap bikes that help people get around; it isn’t unreasonable to introduce a charge,” Horner said.
Horner noted that something as small as a 1% charge would bring in as much as €12 to €15 million to Dublin City Council’s coffers.
Fellow Green councillor Donna Cooney noted that previous Lord Mayors of Dublin such as McAuliffe and Southside Fine Gael TD James Geoghegan were supporters of the tourist tax during their time as councillors.
Cooney noted that even though giving more powers to local government and a tourist tax were in the coalition agreement that was drawn up between Fianna Fáil and Fine Gael in 2025, there was no appetite at a Cabinet level to bring in a tourist tax.
“This government have been in for a couple of years; this should have been brought in much quicker, and we could have had €35 million extra,” she said, with that extra money going towards the likes of street cleaning.
With Dublin being the one major European city that currently doesn’t have a tourist tax, Social Democrats councillor Cat O’Driscoll provided examples of what is being done elsewhere.
Edinburgh City Council are introducing a 5% per person per night fee, and various cities across the Netherlands have a flat cap of €3 per tourist per night.
“There are so many examples for us to draw on,” the Cabra-Glasnevin councillor said.
O’Driscoll said it was frustrating that the idea of a tourist tax was still stuck at the idea stage, when the political will is there within Dublin City Council members to discuss the nitty-gritty of details and actually implement the plan.
Fine Gael councillor Ray McAdam said he is “pleading” with his colleagues within government to introduce the charge.
McAdam, who is tipped to take up a seat in the Seanad in November, said that the support is there within government parties to bring in a tourist tax, but it hasn’t reached the higher levels of government.
The North Inner City councillor noted that the Local Democracy Taskforce, which was commissioned by Simon Harris after becoming Taoiseach in mid-2024, recommended the implementation of a tourist tax.
“If you look at what this council is doing across our city, there is a huge amount that our council is doing to animate our city and bring people in,” he said.
McAdam said that the tourists who come to Dublin should be paying for the services that are availed of by people who live in Dublin day-to-day.
Fellow Fine Gael councillor Colm O’Rourke said the legislation was important in giving councillors more decision-making powers.
“So many times in this chamber, we complain about the lack of power councillors have,” he noted.
O’Rourke noted that the legislation allows councils to vote to introduce the tourist tax or not, and that was important insofar as granting councillors more of a direct say on a major issue such as revenue raising.
Independent councillor Nial Ring noted Amsterdam has a 33% tourist tax rate, yet it is still one of the most-visited capital cities in Europe.
The North Inner City councillor said, “anyone who knows anything about economics knows about the elasticity of demand; it doesn’t matter how much you put it up, you still get the exact same demand.”
Labour councillor Dermot Lacey said he first proposed the idea of a tourist tax all the way back in 2002.
“I’m sure other people have been proposing it before me; this has been a long time coming,” he said.
Lacey welcomed the fact that a government TD was the one to push this legislation forward, but said he had reservations about how exactly the funds would be ring-fenced.
“We shouldn’t let other people impose restrictions on how we spend an income that we determine,” he said.
Lacey noted “we have to be careful on this,” and that there shouldn’t be a backdoor in the legislation for central government to take the tax money away from Dublin City Council.
Sinn Féin councillor Janice Boylan said that so many powers have been taken away by central government, and this legislation was an opportunity for councillors to wrangle some control back.
“Not once, while I’ve travelled, have I decided ‘no, I won’t go there because there is a tourist tax’”, the North Inner City councillor said.
“People come here for the culture and a tourist tax won’t stop them,” she said.
Lord Mayor Daryl Barron said he has raised the issue with the Taoiseach and with other government ministers.
The Donaghmede councillor said “anyone I have talked to at a government level has been very positive” on the idea.
“I think it is important that we have a new lever for the city. What it can do for the city is massive. As Lord Mayor, I will continue my crusade until we get it,” the Fianna Fáil councillor told the meeting.
“I am getting very positive soundbites, but the government must commit and deliver it in my term as Lord Mayor,” he said.