Ireland and UK consider visitor levies on overnight stays

Research and government policy developments in Ireland and the United Kingdom indicate a growing movement toward implementing visitor levies on overnight accommodations.

In Ireland, a study by the University of Galway suggests that a well-designed Visitor Accommodation Levy (VAL) could generate more than €200 million annually for local authorities. The research, based on data from Fáilte Ireland, indicates that a €5 tax rate per person per night could significantly broaden the tax base and strengthen local democracy. The proposal follows recommendations from the 2024 Dublin City Taskforce and the 2026 Local Democracy Taskforce.

In England, the government has confirmed that mayors and local leaders will be granted the power to introduce an overnight visitor levy. Unlike a flat rate, this levy will be calculated as a percentage of the cost of an overnight stay to mitigate the impact on families seeking cheaper holidays. Local leaders, including the Mayor of London, have proposed a 5% cap. While proponents argue the levy is a common international practice, opponents express concerns that it may increase administrative burdens and discourage tourism within the hospitality sector.