ITIC Warns on Tourist Tax

A proposed tourist tax would devastate the industry and provoke job losses across Ireland, according to ITIC.

The Irish Tourism Industry Confederation said businesses “will not survive” if the Tax and Welfare Commission suggestion goes ahead. 

Elaina Fitzgerald Kane, chair of the ITIC, said the measure would also further hike inflation and leave Ireland a less attractive place to visit at a time when purse strings are being tightened across the world in the teeth of an energy and cost of living crisis. "There is a real cost-of-living crisis right now, but there is also a cost of business crisis,” she said.

“It is a double whammy for the tourism industry, and there is already a lot of concern about what lies ahead - 2023 is not going to be a normal year.

“There are a lot of issues being carried over from the pandemic, the outlook is not strong - we have never seen higher inflation in the UK, our largest market, and there is negative growth forecast in the US - and people will have less disposable income."

The Tax and Welfare Commission has floated the idea of an extra “accommodation tax” levied on tourists to Ireland to support the cost of their use of public services while here. In a report, unpublished but sent to the Department of Finance, it argues similar charges are already in place in many other European capitals, including Paris, Berlin and Vienna.

While it does not recommend a rate, it says similar levies around Europe average between €0.40 and €2.50 a night.