A cash-strapped Galway City Council Executive has said it will lobby Government for the introduction of a ‘tourist tax’ to tackle budget shortfalls.

Director of Finance, Helen Kilroy, made the comments on Monday as she sought the approval of councillors to borrow €60 million to fund capital investment.

The fitout of the Council’s new HQ at Crown Square and the upgrade of a crumbling public lighting network are among the projects to be funded by the loan, which will cost €3.1 million annually to service over 30 years.

Ms Kilroy said that with last year’s increase in local property tax (LPT) and commercial rates, the Council had increased its budget — but more was needed.

“We are using that as a business case to push [Government] to maintain our full yield of LPT and to move up a tier in funding,” she said, referring to the City Council’s position among those with the lowest funding from central Government.

“We are looking at other areas, too. A tourist tax — we are asking government to make new legislation to allow us to generate an income from our own tourist tax,” she said.

The Council’s Corporate Policy Group previously considered the possibility of introducing taxes on tourists similar to those used in many European cities.

It was estimated that this ‘hotel bed tax’ or ‘visitor levy’ could net almost €2 million annually for the local authority, if applied at 2% per room.

Pictured: Director of Finance, Helen Kilroy.