Bed Tax Proposal for Council

Minister for Enterprise Simon Coveney has said the Government would need to assess a proposal for a tax on bed nights in hotels in Dublin.

A proposed hotel room tax is due to go before Dublin City Council's Finance Committee this week. The tax could raise as much as €12m, which would go towards regenerating the city.

Mr Coveney said if the measure were to require legislation, then the Government would need to fully understand the implications and consequences of it. He said hotel rooms in some parts of Dublin are very expensive at the moment because of the shortage of supply.

"So I think we need to assess what's the appropriate thing to do at the moment to try to keep hotel rooms affordable and also to ensure that hotels themselves remain in business," he said.

He added that there are cities in different parts of Europe that do have a hotel room tax.

Former Mayor of Dublin and Green Party Councillor Hazel Chu said she supports the tax and the plan is supported by a number of councillors. Speaking on Today with Claire Byrne, Ms Chu said that Dublin City Council wants to improve on culture and safety but have been told there is not enough money.
She said the council could set a rate or a percentage rate that larger hotels pay more so smaller local hotels would have a better footing.