Depsite intense lobbying form some local politicians, Budget 2026 did not include a tourist tax on overnight stays in paid accommodation is unlikely to be included.
Such a tax, often called a visitor levy or accommodation tax, targets hotels, hostels, B&Bs, guesthouses, caravan sites, and short-term lets to fund tourist-related services and infrastructure or manage overtourism.
The 2022 Commission on Taxation and Welfare and the 2024 Dublin City Taskforce support its introduction to broaden the tax base. Estimated revenue, based on a 55% bed occupancy rate and rates of €1 to €3 per person per night, ranges from €32 million for hotels only to €213 million for all approved accommodations.
Countries like Canada, the US, and EU cities such as Amsterdam and Lisbon impose similar taxes, with rates from €3 per night to 12.5pc of accommodation costs. Revenue estimates ranges from €32m to €213m based on €1 to €3 per person per night.
The 2022 Commission on Taxation and Welfare and 2024 Dublin City Taskforce endorse the tax.
Cities like Amsterdam, Lisbon, and Toronto levy similar taxes with varying rates and exemptions.
Academic Stephen McNena shared: “Although it is difficult to measure the price elasticity of visitor demand, the tourist industry claims that visitor demand is price sensitive and that a visitor tax would damage competitiveness and jeopardise the viability of some accommodation providers.”
