It is time for Galway City Council to look at applying a hotel room tax on all visitors as this would be a sensible revenue raising measure that could go directly into the delivery of services in Galway City. So said Mark Lohan, Sinn Féin candidate in this summer’s Galway City Council elections.
He said that this type of tourist tax is common across Europe and the United States.
The recent trip for St Patricks day by Irish delegations would have seen them all pay this local tax to the towns and cities they spent a night in. It makes sense that a city like Galway examines how this tax would be applied and how it could benefit the city and its residents, said the Sinn Féin candidate for city council.
“On a quick review of my own, I estimate that it could raise €1.7 million per year for the city. This is based on a 1% levy on the 3,000 Galway city hotel rooms at €200 per night at 80% occupancy. While this may be the top end of an estimation any revenue that exceeds one million euro per year has to be considered by the city council,” stated Mr Lohan.
Recently the Commission on Tax and Welfare, which sought to identify how tax systems can support economic activity and promote increased employment and prosperity, recommended the introduction of such an accommodation tax. Several European cities already have this system in place including Berlin, Vienna, and Rome where the levy varies from between .40 cent to €2.50 per night.
Mr Lohan feels this city-based tax can be ringfenced for more sustainable tourism and ensures that visitors share the responsibility of maintaining and enhancing the city and its amenities, said Mark Lohan, running for the council in city central.
“In another study done by the city of Amsterdam they found that the introduction of such a tax did not stop tourists from visiting and there was no price sensitivity to its introduction on visitor accommodation,” he added.
“The introduction of the tourist overnight tax would need a change in legislation from central government but just as Dublin City Council has begun the process of examining this tax, so too should Galway City Council. This can put pressure on Government to examine getting it progressed so that cities and counties can decide if they want to apply to use it.
Scotland and Wales are in the process of passing such options through their parliaments where the local authority will have the option to engage in applying it or not.
“It makes sense for us in Galway to begin the discussion with all stake holders including hotel owners. While there may be initial resistance from them, the benefits in local service improvements may show the cost is worth the benefit,” he said.
