Galway explores tourism tax to enhance the city’s infrastructure

Tuesday, March 26, 2024

A local councillor has expressed the opinion that implementing a €2 tourist tax on hotels in Galway could prove advantageous for the city. It’s been observed that tourist taxes are becoming a standard practice in many popular destinations worldwide, as they provide a means for local governments to generate additional revenue to offset the costs incurred by tourism.

Fianna Fáil’s Councillor Michael J Crowe has been a proponent of this idea, suggesting that such a tax would be levied on each occupied hotel room per night, clarifying that the tax would apply to the room regardless of how many people are staying in it. Following a request for an analysis from the Finance Department of Galway City Council, a report presented in autumn 2023 highlighted the potential benefits and significant revenue that could be generated from this tax.

The projections from officials in Galway suggest that a €2 tax on each hotel room could potentially raise about €1.7 million annually for the city. Councillor Crowe remarked that introducing this tax would align Galway with other cities that have adopted similar measures. He noted its commonality across Europe and referenced Manchester and Scottish local authorities as examples where similar taxes have been implemented.

Councillor Crowe also mentioned various ways in which the generated funds could be utilized, such as enhancing the city’s street cleaning budget, which currently stands at €2.2 million but is deemed insufficient. He highlighted several projects that could benefit from the additional funds, including the redevelopment of the Galway City Museum and Leisure Land, among others.

When the idea was initially proposed last year, it met with resistance from local hoteliers. However, Councillor Crowe believes the tax, being minimal, would not deter visitors. He emphasized the tax’s commonplace nature in the tourism industry and its potential to positively impact the city without making drastic changes. Crowe, who is involved in the tourism sector himself, views the tax as a nominal charge that tourists are accustomed to, which would hardly affect the overall cost of their stay. Before the pandemic, tourism’s contribution to the Irish economy was valued at €9.5 billion.

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