The Irish Hotels Federation has argued that a proposed tourist tax would mean “double taxation” of Irish citizens who holiday domestically. 

Minister for Housing James Browne has said he has “no difficulty” with such a tourist tax, which would see a small fee levied by councils per night that a tourist stays in their local area. 

Other European cities that levy a tourist tax include Amsterdam, Rome and Manchester. 

On The Claire Byrne Show, Irish Hotels Federation spokesperson Paul Gallagher warned that Ireland is a “very expensive destination already”. 

“We see Eurostats say we're the most expensive country in the EU for services,” he said. 

“So it's true that we are an expensive economy; it's difficult to get here, we're an island, so you have to fly.

“We don't have the same advantages as other locations across Europe where you have interconnectivity with trains or a tunnel in the case of the UK. 

“So, we are very reliant on air travel and if Ireland gets too expensive, visitors may choose to go somewhere else.”

Tourists enjoying a day out on the Ring of Kerry. Picture by: Alamy.com. 

Mr Gallagher continued that hotels already pay “significant” sums to local authorities in taxation and that Irish citizens in particular would be impacted by such a charge. 

“Domestic citizens stay in Irish hotels if they're coming from Cork to Dublin,” he argued.

“They would be paying double taxation if they were to stay in a hotel - so it's really not a fair system.”

Mr Gallgher continued that he had still yet to hear what the funds raised from a tourist tax might be spent on. 

“I think quite honestly, if I was creating a plan for the improvement of Dublin for the benefit of everybody who comes and the citizens who live here, I'd like to know what the action plan was first,” he argued. 

“What is going to be delivered? And rather than talk about the money first, I think, we may discover that we're less resistant if we really understood what was going on.” 

Also on the programme, Green Party Councillor Michael Pidgeon described a tourist tax as an “idea whose time has come”. 

“€12 million a year - it would be roughly what would be raised by a 1% service charge or hotel tax in Dublin City Council,” he said. 

“That would be 250, in and around full time street cleaners.

“So, there's one example of what you want to do now. 

“You might say, actually, we prefer 30% of the money to go into parks or something other than street cleaning, cultural events, that sort of thing - that's absolutely fine.

“But I think the reason the conversation starts with money is because that's ultimately where a lot of ideas go to die in city councils because you just don't have the funds for them.”

The beach in Lahinch, County Clare, Republic of Ireland

Cllr Pidgeon added that it “totally makes sense” why hotels would lobby against it; however, he believes it would still benefit the local areas they serve, overall. 

“If you look at cities which have hotel taxes, which I think are too high, which I wouldn't apply here like Amsterdam, that's a 12.5% rate,” he said. 

“And they've studied it there and they found it hasn't had a measurable impact on tourism.

“So, I think a 1 or 2% charge is not going to move the dial in any substantial way.”

Main image: Beds in a hotel. Picture by: Alamy.com.