Charging hotel guests across the city a one Euro per night tourism tax could net an estimated extra €2 million per year for the city’s finances.
This is the calculation Mayor Peter Keane (FF ) applied to a motion brought to the Galway City Council by Councillor Helen Ogbu (Lab ) directing officials to figure out how Galway should be designated as a pilot city for government proposals to introduce a tourist tax.
Her motion was passed by a majority of councillors, with Councillor Keane adding that he had sought a meeting with officials working for former minister for finance Michael McGrath (FF ) on this issue one year ago.
“This all hinges on legislation being enacted, but it’s something worth looking into as cities all over the world do it successfully already,” said Ogbu. “Why not pilot it here? Communication with everyone will be key, but we have lots of projects to do for our city, and we need the extra money to pay for them.”
Ogbu’s motion directed that revenue from a bed tax would be ring-fenced for reinvestment into local services to benefit visitors and residents. She suggested a one per cent tax on tourists would pay for improved visitor infrastructure.
Councillor Declan McDonnell (Ind ) pointed out that cities in Belgium charge visitors €4.50 per bed night, prompting his former Progressive Democrat party colleague Donal Lyons (Ind ) to joke: “He’s very familiar with prices in Brussels!” to much hilarity.
Councillor Frank Fahy (FG ), remotely logged in to the council meeting whilst on holiday, said a proportion of a €1.50 nightly tourist tax was returned to hotels in Portugal. “We need to ensure that the money is kept locally to pay for things we need in Galway like an auditorium or concert hall,” he said.
Welcoming the motion, Councillor Cubbard (Ind ) suggested that officials also research the possibility of any negative impacts to tourism, while Councillor Eddie Hoare (FG ) warned that the city must “be careful not to put out the wrong message” to visitors.
The motion directing city officials to research a tourism tax was passed by the city council, with Fine Gael councillors Eddie Hoare and Shane Forde voting against.
