- Researchers from University of Galway designed a visitor levy scheme for Ireland that could generate millions in tax revenue
- Revenues in excess of €200 million a year could accrue to the local government sector
- Each €1 of a Visitor Accommodation Levy would generate €44 million per annum for local authorities
- A €5 tax rate per person per night would generate almost €220 million for the local government sector
- The study used data from Fáilte Ireland’s National Quality Assurance Framework registers containing 225,098 bedspaces
Researchers from University of Galway have designed a visitor levy scheme for Ireland that could generate millions of euro in tax revenue for central government and local authorities. The policy brief Designing a Visitor Accommodation Levy (VAL) for Ireland shows that with a well-designed scheme, revenues in excess of €200 million a year could accrue to the local government sector. In EU countries and in parts of England, visitor levies or tourist taxes charged by local councils on overnight paid accommodation are common. Ireland does not impose these levies. Both the 2024 Dublin City Taskforce and the 2026 Local Democracy Taskforce have recommended a levy on overnight stays.
The research shows that a visitor levy would meet two objectives set out in the Programme for Government 2025, namely to broaden the tax base and to strengthen local democracy. The key design features of a Visitor Accommodation Levy are the tax base, liability, coverage, exemptions, tax rate, administration, collection and use of funds. Actual revenues will depend on the base, coverage, the tax rate, exemptions and caps, and could raise an estimated €220 million per annum for the local authorities. The research was undertaken by Dr Gerard Turley and Stephen McNena from the J.E. Cairnes School of Business & Economics at University of Galway. The study used data from Fáilte Ireland’s National Quality Assurance Framework registers, which contains 225,098 bedspaces as of January 2026.
Based on a fixed tax rate per person per night, each €1 of a Visitor Accommodation Levy would generate €44 million per annum for the local authorities. A €5 tax rate per person per night would generate almost €220 million for the local government sector. This translates into €5.7 million for Waterford City and County Councils, €8.2 million for Galway County Council, and €46 million for Dublin City Council. For hotels only, estimates show that a €1 tax rate per person per night would generate the same revenue, circa €33 million, as a 1pc room tax rate per night based on 2025/26 data. The authors advise that pre- and post-legislative consultation with key stakeholders is essential. Additional policy recommendations include further research including a price sensitivity analysis and an impact assessment study, learning from other visitor levy experiences internationally, the naming of the levy and the ringfencing of revenues, the importance of tax administration, and local discretion in terms of an opt-in to a national visitor levy scheme.
Gerard Turley shared “Based on a fixed tax rate per person per night, we estimate that each €1 of a Visitor Accommodation Levy would generate €44 million per annum for the local authorities. A €5 tax rate per person per night would generate almost €220 million for the local government sector. Taking three examples from the 31 local authorities, this translates into €5.7 million for Waterford City and County Councils, €8.2 million for Galway County Council, and €46 million for Dublin City Council.”
