Tourism tax could help fund ‘significant’ revitalisation of Dublin – Taoiseach

By Gráinne Ní Aodha, PA

A tourism tax could help bring in “significant” funding for a plan to “revitalise” Dublin city, the Taoiseach said.

The Dublin City Taskforce report, published in October 2024, said Dublin has become “less welcoming” since the financial crash and pandemic and makes recommendations on how to revive it.

At a press conference on Tuesday, Taoiseach Micheál Martin, Tánaiste Simon Harris and Minister of State Sean Canney confirmed the Government’s backing for the Capital City Report of the Dublin City Taskforce.

A roadmap for delivery of the Dublin City Taskforce Report was also published on Tuesday.

“Our capital city does undoubtedly have a lot to offer,” Micheal Martin said.

While the city is viewed positively by some, Mr Martin acknowledged there have been “increased concerns about safety, cleanliness, reduced footfall and changing attitudes to shopping and socialising”.

He said the redevelopment of the GPO as “a world-class and historic flagship project”, with a “significant” cultural element, supported by retail and office parts, was among the recommendations to revitalise Dublin.

Mr Martin said that a tourism tax will be examined to help fund the “significant” expenditure needed to make the city more enticing.

“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.

“It will be examined in more detail. Estimates varies between depending on rate of fee applied, it would range from four million to 41 million.”

The Tanaiste added: “There can be significant benefit in a tourist tax if done in the correct way.

“Many, many European capital cities have it, but of course, you want to get the timing right, you want to, obviously consult.

“You want to do the work the Taoiseach has outlined.”

He said it would also be about “empowering” Dublin City Council to decide whether it needed an additional revenue stream.

“The idea that people who visit our city would make a small contribution, they would go back into the city council coffers to help them deliver some of the projects.

“So fundamentally, I believe, massively in local government, empowering councillors and providing revenue streams, there needs to be a sensitivity around the timing.”

The report of the Dublin City Taskforce said there are a number of funding mechanisms that could be leveraged to support implementation of its revitalisation plan.

“These include state level supports through funds like the Urban Regeneration and Development Fund (URDF), European level supports through the European Investment Bank (EIB), public/private partnerships and the introduction or enforcement of levies such as a tourist tax, congestion charges, increased vacant property levies or a lifting of the derogation for rates on State buildings.

“Any decision on fundraising is a matter for government and is outside the remit of the taskforce.”