‘Wrong signal at the worst possible time‘ – Dublin doubles hotel development levy

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  • Dublin City Council doubled the hotel development levy.
  • The new rate stands at €244 per square metre from 1 July.
  • A 20,000 square metre project faces a €5 million charge.
  • The Irish Hotels Federation raised concerns over the increase.
  • The change forms part of the revised scheme agreed on 8 June.

Dublin City Council has doubled the development levy on new hotels, hostels and aparthotels. The charge rises to €244 per square metre and takes effect from 1 July. For a 20,000 square metre development the levy increases from €2.5 million to €5 million.

The revised contribution scheme agreed on 8 June applies twice the commercial rate to these accommodation types. The Irish Hotels Federation criticised the move as it occurs at a time when hotel projects face high costs. Analysis indicates a national shortfall of between 10,000 and 15,000 hotel bedrooms by 2031.

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Dublin serves as the main arrival point for overseas visitors to Ireland. Paul Gallagher shared “The doubling of the charge sends the wrong signal at the worst possible time. If we are serious about meeting our national tourism targets, it makes no sense to double a major upfront charge on the very accommodation those targets depend on.”

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