Tourist tax for Dublin under consideration as GPO plans discussed
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A tourist levy is under consideration for Dublin City but it is "highly unlikely and unrealistic" that it will be introduced in the next year, the Government has confirmed.
This is despite Tánaiste Simon Harris saying two months ago that he would be "nervous" about the imposition of such a tax. However, Taoiseach Micheál Martin stated that it may be needed to fund some of the recommendations contained in a 10-year roadmap to "revitalise" Dublin.
A Special Purpose Vehicle (SPV) will be established by and operate under the auspices of Dublin City Council to drive delivery. This will include the redevelopment of the GPO as an "ambitious and historic flagship project with cultural, retail and office components".
The Government also agreed to further consider wider measures which could support the regeneration of Dublin and other cities, such as an Accommodation Tax or Levy, borrowing limits for Local Authorities and a review of the Living City Initiative. Several ministers, including Fine Gael's Patrick O'Donovan, have expressed reservations about such a plan.
However, the Taoiseach stated that it could generate between €4 million and €41 million. Mr Martin said a detailed paper was prepared by the Department of Tourism. He said: "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. There's going to be significant additional expenditure to make the city more attractive.
"Identifying revenue sources which won't go near meeting the entirety of the expenditure that would be allocated to this project is a good principle. But it will be examined in more detail. Estimates vary, depending on the rate or fee applied, range from €4 million to €41 million."
In April, the Tánaiste said he would be "very nervous" about the imposition of a tourist tax in Dublin. Asked if he was still nervous about the plan, Mr Harris said it was an "issue of timing for a sector that has gone through huge volatility".
He added: "There can be significant benefits in a tourist tax if done in the correct way. Many, many European capital cities have that. But of course, you want to get the timing right." When asked if it would be introduced in the next year, Mr Harris said that was "highly unlikely and unrealistic".
Elsewhere in the plan, there is a commitment to recruit 1,000 extra Gardaí for Dublin City alone, something the Taoiseach said was possible in the 10-year plan. However, there were no details provided on what budget will be put behind the plan and how much it would cost to implement all of the "big moves" recommended by the Dublin City Taskforce.
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