Joan Burton (Dublin West, Labour)
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Question 99: To ask the Minister for Arts, Sport and Tourism his views on proposals to introduce a tourist tax on a per bed basis by Dublin City Council; his views on whether this is a positive step; and if he will make a statement on the matter. [17677/08]

Martin Cullen (Waterford, Fianna Fail)
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I understand that a levy of €1 per bed per night is among a number of measures considered by Dublin City Council to raise revenue in the context of a submission to the Commission on Taxation and that this has been included in the Council's proposals to the Commission on Taxation, which falls under the aegis of the Minister for Finance.

The tourism industry, including hotels, already contributes very significantly to the funding of local authorities through commercial rates, as well as through local charges for water and for waste disposal. Hotels also contribute to the overall tax base, and hence indirectly to local authorities, through corporation profits tax, VAT and income taxes.

Recent turmoil in financial markets and international economic difficulties will increase the challenges facing the tourism industry. The strengthening of the euro against the dollar and sterling gives rise to additional challenges in two of our key markets — the United States and Britain. In my view any measure that drives up costs to tourists visiting Ireland and threatens the competitiveness of Ireland as a tourist destination should be avoided, if possible.

I do not believe that additional taxes or other costs should be imposed without full consideration of the implications for a key sector of the economy, such as tourism.