Tourism tax could help fund ‘significant' revitalisation of Dublin

Irish Independent

24-06-2025

The Dublin City Taskforce report, published in October 2024, said the Irish capital has become 'less welcoming' since the financial crash and pandemic and makes recommendations on how to revive it.
At a press conference on Tuesday, Taoiseach Micheal Martin, Tanaiste Simon Harris and Minister of State Sean Canney confirmed the Government's backing for the Capital City Report of the Dublin City Taskforce.
A roadmap for delivery of the Dublin City Taskforce Report was also published on Tuesday.
Mr Martin said an oversight board will be established and chaired by his Department to oversee the delivery of the taskforce report through the 'roadmap for delivery'.
Social Democrats TD Gary Gannon said the announcement on Tuesday was 'a rehash' of the same announcement that had been made three times already and called for more urgent action.
'The city is in decline, it needs leadership. We thought that this was going to be about (that), it just seems to be a useful press release for you.'
At the press conference, Mr Martin said the capital 'does undoubtedly have a lot to offer' and is viewed positively by some people.
But Mr Martin acknowledged there have been 'increased concerns about safety, cleanliness, reduced footfall and changing attitudes to shopping and socialising'.
He said the redevelopment of the GPO as 'a world-class and historic flagship project' – with a 'significant' cultural element, supported by retail and office parts – was among the recommendations to revitalise Dublin.
He said the pledge in the plan to increase the number of gardai in the city centre by 1,000 had already begun.
Mr Harris said the plan would reduce vacancy and dereliction and improve public spaces and attract people back into the city.
'I'm pleased also to see that the roadmap seeks to move ahead with landmark projects such as the fruit and vegetable market, Parnell Square cultural quarter (and) the regeneration of housing precincts.'
Mr Martin said that a tourism tax will be examined to help fund the 'significant' expenditure needed to make the city more enticing.
'It could provide additional revenue raising powers, so that will be examined. Because, let's be honest, there's going to be significant investment here.
'There's going to be significant additional expenditure to make the city more attractive.
'It will be examined in more detail. Estimates varies between depending on rate of fee applied, it would range from four million to 41 million.'
The Tanaiste added: 'There can be significant benefit in a tourist tax if done in the correct way.
'Many, many European capital cities have it, but of course, you want to get the timing right, you want to, obviously consult.
'You want to do the work the Taoiseach has outlined.'
He said it would also be about 'empowering' Dublin City Council to decide whether it needed an additional revenue stream.
'The idea that people who visit our city would make a small contribution, they would go back into the city council coffers to help them deliver some of the projects.
'So fundamentally, I believe, massively in local government, empowering councillors and providing revenue streams, there needs to be a sensitivity around the timing.'
The report of the Dublin City Taskforce said there are a number of funding mechanisms that could be leveraged to support implementation of its revitalisation plan.
'These include state level supports through funds like the Urban Regeneration and Development Fund (URDF), European level supports through the European Investment Bank (EIB), public/private partnerships and the introduction or enforcement of levies such as a tourist tax, congestion charges, increased vacant property levies or a lifting of the derogation for rates on State buildings.
'Any decision on fundraising is a matter for government and is outside the remit of the taskforce.'