Hotel lobby quietly backs introduction of a tourist tax, says Fine Gael TD
James Geoghegan has indicated hotels in Dublin City have provided him with 'off-the-record' briefings, where they have set out their willingness to deal with a hotel room tax if Government can show where the funds will go.
Private briefings from the hotel lobby have given quiet backing to the introduction of a tourist tax, a Fine Gael TD has said.
James Geoghegan has indicated hotels in Dublin City have provided him with “off-the-record” briefings, where they have set out their willingness to deal with a hotel room tax if Government can show where the funds will go.
“I’ve actually had a lot of off-the-record discussions with some of the major hotel sectors in Dublin City and what they say to me off-the-record is that look, ‘a couple of euro on a hotel bill [is] fine, but if you show us what the return on that investment is’,” Mr Geoghegan said.
In recent months, the four local authorities in Dublin have been working on proposals to tax hotel rooms, with a suggestion funds raised could be funneled into amenities and local improvements.
It has been estimated as much as €12m could be collected each year through the proposed levy.
Mr Geoghegan cited how other countries have introduced a tourist tax, highlighting Edinburgh provides some of the funds back to hotels to deal with the administrative costs of the levy.
“There’s lots of ways to ensure that we can bring them to the table. I can understand what they don’t want to see is just something happen overnight and there does need to be a process, however frustrating that might be for people out there who want to see things happen quickly.
“This is the process of Government, but I think we’re going in the right direction.”
Mr Geoghegan said hotels would buy into the hotel levy as money raised would go “right back into Dublin City” and support tourists travelling to Ireland.
“We see right across Europe, a couple of euros on a hotel bill is a very standard practice,” Mr Geoghegan said.
It comes after a group of Dublin-based Fine Gael TDs, including Mr Geoghegan, launched proposals to support the implementation of the Dublin City taskforce report.
This includes calling on the Government to examine the introduction of a hotel room tax, which has previously been dismissed by senior Coalition figures — including Tánaiste and Fine Gael leader Simon Harris.
Mr Geoghegan said he had engaged in discussions with Fine Gael ministers, including tourism minister Peter Burke, on the matter.
“I do understand the general broader concerns in respect of tourism that he [Mr Burke] might have from an overnight introduction, but I’d be hopeful that he would support an examination,” Mr Geoghegan said.
The Fine Gael TD added any examination should be carried out by Fáilte Ireland.
On Wednesday, Taoiseach Micheál Martin indicated the Government would discuss an implementation report on the taskforce at Cabinet next Tuesday.
Mr Geoghegan said he was “very hopeful” there would be a commitment to examining a hotel tax within the Cabinet memo.
It comes as emergency legislation to introduce a national rent pressure zone has been formally signed into law by President Michael D Higgins.
The change will prevent landlords from hiking rents by more than 2% per year.
It will provide protections to the approximately 17% of renters who were previously not covered by rent pressure zones, and will take effect from Friday.
