Labour councillors have put forward a proposal which could see a two percent tax put on hotel rooms.
They’ve been discussing a report about the possible introduction of a new rate in the city, despite objections from the sector.
Dublin’s hotels pay council rates and levies to business improvement districts as well as other outgoings like wages, advertising and marketing.
However, this proposal has them up in arms saying it could damage tourism in the city.
Councillor Brendan Carr said there are contradictions in their objections:
“They’re saying they need an extra 5000 beds, that’s the demand in the city. Yet if we put an extra two or three Euro a night, no-one’s going to come to Dublin. It just doesn’t make sense.”
Sinn Fein’s Micheal MacDonnacha also didn’t buy their argument:
“There’s also the issue of the fleecing that goes on around big events, that’s notorious at this stage.”
But Mary Freehill says councillors mightn’t have the power to bring in the tax:
“One of the big things that Mr. Hogan told us was that we would have the right to raise taxes at local Government level. So the law agent tells us now that we can’t.”
Instead of taking a vote on the proposal, councillors have decided to look into it further and discuss it at the next meeting of the Finance SPC.
