Limerick Mayor eyes introduction of hotel tax to fund tourism offerings

Irish Times

28-05-2025

Limerick
Mayor
John Moran
has sought the Government's blessing to introduce a hotel tax or levy in line with fundraising abilities of other European cities with directly elected mayors.
Mr Moran, who
assumed the unprecedented office last June
, has argued for the move even when other local authorities may not pursue a similar financial mechanism.
The concept of a hotel or tourism levy – typically explained as a modest tax paid by visitors to support local amenities – has often proven contentious. Dublin's four local authorities are due to examine how such a levy might work, while the hotel industry has pushed back.
Although Mr Moran did not specify an approach, he has signalled his intention to pursue the funding model as part of a broad strategy to boost Limerick's economy and tourism offerings.
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Under his tenure, Limerick has created a designated activity company to drive investment.
'Ongoing support for that company is essential for those assets to reach their full potential,' he explained in a letter to Minister for Enterprise Peter Burke, a copy of which was obtained under Freedom of Information.
'To this end, as a policy matter, we would welcome an opportunity to engage with you and your officials about the possibility of introducing a tourism/hotel tax or levy in Limerick as a devolved authority even if other local authorities would prefer not to progress on that route.'
The mayor argued that many European city-regions with similarly elected mayors have been granted such 'specific and important local fund raising power which permits ongoing investment in tourism amenities locally'.
Taoiseach Micheál Martin requested that all Government departments engage with the Office of the Mayor of Limerick to seek its views as part of the current review of the National Development Plan (NDP).
Last year, more than 2.2 million people from more than 200 countries visited Limerick's official tourism site. Mr Moran's correspondence set out a detailed plan for various developments that would boost both regional tourism and the local economy.
Noting the county's proximity to the Wild Atlantic Way, and Ireland's immensely successful marketing of the west coast, he said it was anxious to broaden its offerings, exploiting the appeal of minority sports, such as cricket, and cross-over sectors including food tourism.
Projects pitched to Mr Burke for inclusion in the NDP, at a combined overall estimated cost to the State of more than €200 million, included the restoration of King John's Castle, arguably the city's most prominent heritage site.
The concept includes revealing more of the 13th-century building's features alongside the development of new visitor amenities and interpretive exhibits.
'King John's Castle will be a flagship tourism attraction, acting as a catalyst for urban regeneration on King's Island, facilitating SME growth and job creation, significantly boosting Limerick's capacity to attract domestic and international visitors,' he said.
The document also cites ambitions for the redevelopment of the Limerick milk market as a seven-day food attraction; the creation of a 'premier medieval networked tourism destination', leveraging the medieval heritage of surrounding towns; and a northside park along the river Shannon.