Dáil Éireann Debate, Tuesday - 10 February 2026
234. Deputy Brian Brennan asked the Tánaiste and Minister for Finance if he will consider introducing tax incentives or reliefs to encourage developers to invest in building hotels in rural Ireland; and if he will make a statement on the matter. [10088/26]
View answerAs the Deputy will be aware tourism accommodation policy is primarily the responsibility of the Minister for Enterprise, Tourism and Employment. That Department recently published the National Tourism Policy Statement which signalled the development of a Tourism Accommodation Strategy in 2026.
There are already a number of reliefs available which could support the construction of hotels. Capital allowances for hotel construction allow for a 4 percent annual tax deduction over 25 years on qualifying capital expenditure for registered hotels. Capital allowances for hotels have been made conditional on the hotel being registered in the appropriate register kept by Fáilte Ireland under the Tourist Traffic Acts.
The Employment Investment Incentive, which is an income tax relief for investment in small and medium enterprises, is available for investors in tourism accommodation following approval by Fáilte Ireland under the Tourist Traffic Acts.
As the Deputy will be aware, the negative impact of previous tax-based interventions incentivising the construction of hotels would have to be considered in the context of any potential tax reliefs.
As a general point, decisions on any potential new tax incentives or reliefs are usually made in the context of the annual Budget and Finance Bill process and at the appropriate time. Such decisions also must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. The guidelines make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures, where a tax-based incentive is more appropriate and efficient than a direct expenditure intervention.
