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Government Clears Way for Local Tourist Levy After Cabinet Agrees Not to Oppose Motion

The move would let city and county councils raise ring‑fenced money for local services provided primary legislation and detailed rules are passed.

Overview

  • The Cabinet agreed not to oppose a Fianna Fáil motion, a decision reported on Tuesday, June 23, that paves the way for the Seanad to debate legislation allowing local authorities to introduce a visitor levy on paid overnight accommodation.
  • Ministers say primary legislation is required because neither central government nor councils currently have power to charge for overnight stays, so the policy still needs a bill, impact analysis and rules on collection and liability.
  • Estimates cited by supporters show the levy could raise about €12m–€17.5m for Dublin and up to €213m nationally if extended, with revenue proposed to be ring‑fenced for cleaning, safety, events and local tourism services.
  • Key ministers including Jack Chambers and James Browne have voiced support for the principle while Tourism Minister Peter Burke and the Irish Hotels Federation urged caution, warning a levy could reduce visitor numbers and hurt competitiveness.
  • Fianna Fáil TD Paul McAuliffe is drafting enabling legislation and Ireland will draw on examples from Scotland, Wales, Italy and Latvia as the Local Democracy Taskforce and an interdepartmental group finalise design choices and impacts.