Galway City Council is to investigate introducing a tax on each occupied hotel bed in the city as a way of generating income.
The so-called transient occupancy tax would likely levy a €2 charge on accommodation providers for each bed taken up in hotels with 20 rooms or more.
If it was introduced in Galway City on just larger hotels – and exempting hostels or B&Bs providers – it could prove highly lucrative, creating an income stream worth €1.2m, predicted Sinn Féin Councillor Cathal Ó Conchúir.
He put forward a motion – seconded by Cllr Peter Keane – calling on the Council to implement it.
“Dublin City Council are on the cusp of bringing it in,” he told this week’s Council meeting.
Director of Services for Finance, Management Services Unit and Water Services Edel McCormack said the Council would be delighted to bring in the hotel tax, which was levied across much of Europe and American states.
“I’ll contact Dublin City Council to see how they’re progressing it,” she remarked.
Sinn Féin had called for a cross-party City Council committee to examine its proposal to introduce the so-called ‘bedroom tax’.
The proposal involves broadening the revenue streams of Galway City Council through a tax on hotel rooms.
Councillor Ó Conchúir explained that the new charge would not hit small operators or B&Bs and would apply only to people who stay in hotels with 20 rooms or more.
“There are approximately 2,700 beds in hotels with more than 20 rooms in the city. The proposal is for an occupancy tax of €2 per night.”
For more on this story, see this week’s Galway City Tribune