Hotelier Slams Dublin Bed Tax Plan, Cites Costs, Inequality

Having spent 52 years in the hotel business, I believe the biggest issue today is the cost of doing business, driven by both market conditions and government initiatives. Businesses need profit and investment to survive; capital will move to where it gets the best return.

The notion of adding a bed/tourist/hotel tax in Dublin is absurd, despite claims it's only a few euro. Systems will be needed to collect it, raising questions about compliance costs, VAT issues, and whether it applies equally to all accommodation providers, including Airbnb. Market inequality is not good if hotels bear the brunt of the tax. Hotels contract 60-80 percent of their business annually at fixed prices, making it difficult to collect more money.

Dublin hotels already pay approximately €1,000 per bedroom in commercial rates annually, plus a 5 percent levy to Dublin Town. Adjusting the annual rate on valuation across all commercial ratepayers would be a better, revenue-neutral solution. Hotels also provide public toilet facilities free of charge. The retail sector, pubs, restaurants, taxis, and the exchequer benefit from tourism, not just hotels. Councils should focus on collecting outstanding taxes, such as the derelict sites levy, instead of introducing a new tax.

While hotel prices fluctuate with demand, much business is contracted two years out at discounted rates. Ireland is considered good value internationally, despite comparisons to destinations with lower cost bases, such as Portugal where the minimum wage is €1,000 per month compared to Ireland's €2,689. I will continue to fight against this tourist tax. Pat McCann, founder and chief executive of Dalata, Ireland’s largest hotel chain.