John McManus: Would you prefer a hotel room tax or higher property tax?

Introducing a tax on hotel rooms as the tourist industry faces a period of significant uncertainty may seem a little foolish, but it is an idea whose time appears to have come.

The four Dublin local authorities are currently putting the finishing touches to just such a plan and hope to have it in place by September.

The timing is poor with Central Statistics Office data showing a 30 per cent year-on-year decline in visitors in February as part of a continued slump as our largest market – North America – teeters on the edge of recession. Conventional wisdom would argue this is not a good time to put up prices. But the local authorities argue that they don’t have too many other sources of money and need to develop other revenue streams.

The two Ministers with responsibilities in this area have been quick to voice their opposition along with the Irish Hotels Federation (IHF). Minister for Enterprise and Tourism Peter Burke and Minister for Arts and ...
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