James Geoghegan (Dublin Bay South, Fine Gael)
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183. To ask the Minister for Finance further to Parliamentary Question No. 398 of 5 February 2025, his views in relation to a tourism accommodation levy on short-term stays in paid accommodation in the context of the Dublin Taskforce recommendations; and if he will make a statement on the matter. [7106/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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My views in relation to a tourism accommodation levy on short-term stays in paid accommodation in the context of the Dublin Taskforce recommendation are broadly similar to those outlined by the Minister for Enterprise, Trade and Employment in his response to Parliamentary Question No. 398 of 5 February 2025. As the Minister indicated, there are wide range of considerations which need to be taken into account prior to considering such a levy, including who the levy should apply to - international or domestic visitors or both. Another issue would be whether such a levy should just be applied in Dublin, or should all Local Authorities be given the opportunity to apply such a levy.

I would, however, add that a tourism accommodation levy is not a matter I believe appropriate to my Department. It is an issue very much separate and distinct from our general taxation system. The purpose of a tourism accommodation levy would be to provide funding for local facilities and services in order to help attract more visitors and improve local amenities, amongst other things. The only way such monies could be allocated appropriately would be if it were collected locally. As a general rule, it is not possible to hypothecate funding for specific purposes when it is collected as part of the general taxation system.

In other Member States where city taxes and accommodation levies are applied, the levy is collected at local level, by Local Authorities, who oversee the collection and redistribution of funds for projects locally. If such a levy were to be introduced here, the same system should apply. In this regard, you should note for instance that the Scottish Government introduced a Visitor Levy in 2024, which will be collected by Local Authorities. The Welsh Government is also currently considering a similar proposal with again the collection likely to be carried out by Local Authorities if implemented.

In conclusion, this is an important issue which is being given due consideration at the moment and further engagement is required before any decision is made.