Updated / Wednesday, 17 Jun 2026 00:00
It is expected that for a development of 20,000 square metres, the charge will increase from €2.5 million to €5m
A move by Dublin City Council to double the development levy on the construction of new hotels, hostels and aparthotels has been criticised by the Irish Hotels Federation.
Last week, the local authority decided to increase the levy to €244 per square metre.
It is expected that for a development of 20,000 square metres, the charge will increase from €2.5 million to €5m.
Dublin City Council's revised contribution scheme, which was agreed on 8 June, includes a change which said that hotels, tourist hostels and aparthotels will be "charged at twice the commercial rate".
The new rate will apply from 1 July.
In a statement to RTÉ News, the Irish Hotels Federation chief executive Paul Gallagher said the doubling of the charge "sends the wrong signal at the worst possible time".
He added that the cost of delivering new hotel capacity was "already prohibitive and projects right across the country are stalled as a result".
In March, Green Party councillors called for the inclusion of a doubling of the development contribution on hotels as part of the revised scheme between 2026 and 2029.
Green councillor Michael Pidgeon said last night that by making the construction of hotels more expensive, it would "direct more money towards house building".
However, the Irish Hotels Federation said analysis prepared for the tourism industry this year pointed to a national shortfall of between 10,000 and 15,000 hotel bedrooms by 2031.
It said Dublin was the arrival point for most overseas visitors before they travel around Ireland, and constrained hotel investment had implications for tourism nationally.
Mr Gallagher said: "If we are serious about meeting our national tourism targets, it makes no sense to double a major upfront charge on the very accommodation those targets depend on."
Read the full article at RTÉ News →📄Source document: Dublin City Council's Revised Contribution Scheme
2 reports
RTÉ NewsState / PublicCenter4 days agoDublin City Council has approved a plan to double the development levy on new hotel, hostel, and aparthotel constructions, increasing the charge from €2.5 million to €5 million for a 20,000-square-metre project. The Irish Hotels Federation criticized the decision, stating it sends the wrong signal during an economically challenging period and could hinder new hotel developments. The change was included in the council's revised contribution scheme, effective from 1 July. Green Party councillors had previously advocated for this measure as part of a broader strategy between 2026 and 2029.
Bias read (Center): The article presents both the policy change and the criticism from the Irish Hotels Federation without overtly favoring either side. It provides direct quotes from officials and mentions the background of the proposal, including input from Green Party members. There is no evident editorializing or o
Official sources cited
- government Dublin City Council's Revised Contribution Scheme
- organisation Statement from Irish Hotels Federation CEO Paul Gallagher
- organisation Comments from Green Party Councillor Michael Pidgeon
RTÉ NewsState / PublicCenter4 days ago Doubling hotel levy in Dublin 'sends wrong signal' - IHFDublin City Council has approved a plan to double the development levy on new hotel, hostel, and aparthotel constructions, increasing the charge from €2.5 million to €5 million for a 2,000 sq.m development. The Irish Hotels Federation criticized the decision, stating it sends the wrong signal during an already challenging period for the hospitality industry. The council argued that the increased levy would redirect funds toward housing development.
Bias read (Center): The article presents both perspectives—criticism from the Irish Hotels Federation and the rationale provided by Dublin City Council—without overtly favoring one side. It reports facts and quotes from both parties involved without using loaded language or omitting key context.
Official sources cited
- organisation Statement from Irish Hotels Federation CEO Paul Gallagher
- government Dublin City Council's revised contribution scheme
Ireland