A visitor levy on tourists in Ireland could generate approximately €220 million in revenue for local governments, including €8.2m for Galway County Council according to research from the University of Galway.
The policy brief ‘Designing a Visitor Accommodation Levy (VAL) for Ireland’ was published by researchers from the J.E Cairnes School of Business, based on Fáilte Ireland data of 225,098 bedspaces in the country as of January 2026.
Many EU countries, and part of the UK, charge tourists a fixed fee per night for overnight stays. This is generally managed by local authorities where people are visiting.
Ireland does not have any such levy, but one was recommended by the 2024 Dublin City Taskforce and the 2026 Local Democracy Taskforce.
Dr Gerard Turley, Lecturer in Economics at University of Galway, said, “Based on a fixed tax rate per person per night, we estimate that each €1 of a Visitor Accommodation Levy would generate €44 million per annum for the local authorities.”
“A €5 tax rate per person per night would generate almost €220 million for the local government sector. Taking three examples from the 31 local authorities, this translates into €5.7 million for Waterford City and County Councils, €8.2 million for Galway County Council, and €46 million for Dublin City Council.”
The research shows that a visitor levy would meet two objectives set out in the Programme for Government 2025 – Securing Ireland’s Future, namely, to broaden the tax base and to strengthen local democracy.
Stephen McNena, Lecturer in Economics at University of Galway, said, “Our research shows that revenues will depend on the categories of accommodation providers covered in the legislation, as well as the tax rates levied and any exemptions or caps.”
“The choice of tax rate is a percentage rate or a fixed rate, to be applied per person or per room. As both approaches have advantages, we recommend that local authorities have the discretion to choose percentage rate or fixed rate at a level that is appropriate to the local circumstances, the strength of the local tourist sector and the uniqueness of the destination.”
The study used data from Fáilte Ireland’s National Quality Assurance Framework registers, which contains 225,098 bedspaces as of January 2026. This figure excludes unregistered B&Bs, short term lets and on-campus student accommodation.
The study advises that further consultation is needed with stakeholders in the tourism and hospitality industry, and that more research is needed on the potential impact of such a policy.
This would include looking at other visitor levy/tourist tax experiences internationally and recent UK developments, and ensuring that revenue is ringfenced to ensure local acceptance.
