Sir, – Your editorial (“The Irish Times view on the tourist tax: visible return needed for Dublin”, March 23rd) dismisses the hospitality industry’s concerns about a proposed bed night levy as holding “little water.” We take a different view.
Dublin’s hotels make an enormous contribution to both the central exchequer and to the funding of local authority services. Hotels in the capital pay approximately €25 million each year in commercial rates (roughly €1,000 per bedroom). On top of this, many city centre hotels pay a further Business Improvement District levy of 5 per cent specifically towards improving the city for everyone who uses it. This is a sector that is already paying its way, both locally and nationally.
Tourism activity generates approximately 29 cents in tax revenue for every euro spent by visitors, amounting to over €3 billion annually for the central exchequer. The sector is clearly contributing. Imposing additional taxes on tourists and making Ireland less attractive as a destination makes no sense.
The editorial characterises a €5 charge as negligible against average room rates. But with an average Dublin hotel room rate of approximately €200, a nightly levy on visitors would add significantly to the overall cost of a stay, particularly for families and longer visits.
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Moreover, half of all hotel room nights in Dublin are from Irish residents. These are people who pay local property tax. A levy on their stay in our capital amounts to double taxation.
Ireland is competing internationally for every visitor. The last thing we should be doing is increasing costs further and putting visitors off. Dublin is the gateway to the rest of the country for the majority of overseas tourists.
Any additional cost at that entry point doesn’t just affect Dublin. Tourism businesses and communities right across the country would be negatively impacted by a drop in visitor spend.
Of course, Dublin needs continued investment. But imposing yet more taxation on a sector already paying its way is not the answer.
If we are serious about improving Dublin as a destination, the conversation should start with how existing taxation revenues, including what the tourism sector is already contributing, are being deployed, before reaching for new taxes. – Yours, etc,
PAUL GALLAGHER,
Chief Executive,
Irish Hotels Federation,
Dublin 6.
