Members of Galway City Council this week called on national Government to reexamine the outdated funding model for local authorities, to reduce significant gaps in service delivery and public infrastructure across the Galway Metropolitan Area. The current funding model positions Galway City below every other local authority, urban and rural, in Ireland - despite the city being the largest urban centre in the Northern and Western region, a key driver of economic growth in the region and contributor to national GDP. Members highlighted a critical need for a re-examination of this status, and called for the introduction of a pilot Tourism Levy similar to other European city regions, to address shortfalls.
The funding model for the local authority and a pilot tourism levy are part of a programme of twelve ‘Priority Projects’ for Galway City Council reflecting Galway’s role as an economic, social and cultural driver of the Northern and Western region.
At the April 2026 Ordinary Meeting of Galway City Council, Elected Members reviewed a report on the national funding model for local authorities – which highlights a major mismatch between current allocations for Galway City, and the national objectives in the National Planning Framework and Housing for All, among other government policies.
The report identified that current funding arrangements are leading to gaps in service and infrastructure delivery in areas including housing, street cleaning, transport, arts and culture. Funds raised locally through local property tax are effectively being invested in other areas, to Galway City’s detriment.
Members backed a recommendation to review current funding arrangements for Galway City, to reflect the practical requirements of providing for a high density urban setting acting as a counterbalance to other urban areas in the State. Members also called for a bespoke investment plan for the Galway Metropolitan Area, in conjunction with Galway County Council, and introduction of a pilot Tourism levy.
The proposed new funding metric would take account of:
- Population: Galway’s resident population (84,000) and student population (30,000) is not captured by the CSO, putting Galway City below the 100,000 population threshold applied in the national funding metrics.
- Tourism: To give an allowance on funding for Galway having 2.4m visitors annually - which is unique in service demand above the usual local authority.
- Strategic Economic Role: A specific allowance for Galway's City Status as an economic driver of the North-West Region.
- Volume-Based Metric for Roads: A specific allowance for volumes of traffic on urban roads in Galway City, as distinct from length of roads in other rural counties. The current metrics of length of rural roads with low traffic is unfair to urban areas.
Mayor of the City of Galway, Cllr Mike Cubbard said, “Galway is one of the most rapidly growing urban centres in Western Europe, with our population expected to grow from 85,000 to over 122,000 people by 2040. In spite of this exceptional level of growth, Galway City is operating on a financial platform behind every local authority in the country, including rural counties of Longford, Roscommon and Leitrim. The Elected Members took some challenging decisions over the past two years to increase income through Local Property Tax and ARV, but that money is leaving the local authority for investment elsewhere. That is not sustainable and it is not equitable. The Members of Galway City Council are calling on national government to ensure the people of Galway get the investment their city needs and deserves, by putting a funding model in place that reflects Galway’s status. We are also requesting support to pilot a Tourism levy in Galway City, similar to practices in internationally. Galway City is an ideal market to pilot this mechanism to generate funding for local services. A thriving Galway City supports a thriving region, and country.”
Leonard Cleary, Chief Executive, Galway City Council, said, “Over the past two decades, Galway has transformed from a large town to a mid-sized European City – but the funding model for investment in the city is largely unchanged over that time. In practical terms, this is playing out as housing approvals being rejected due to lack of access roads, transport infrastructure or utilities; time lost to congestion; unreliable journey times with key junctions over capacity; delayed investment in flood protection in known areas of vulnerability; and other real-world impacts of insufficient funding. Galway City Council also requires appropriate resources in areas where the local authority plays a regional leadership role – for example, in tourism as an access point to the Wild Atlantic Way, in managing the catchment of the River Corrib, or in homeless support services. Working in partnership with Galway County Council, we are focused on cooperation and regional development – but the national funding model must now be updated to match the scale of services and infrastructure a modern, fast‑growing European city is expected to deliver.”
Members also reviewed the recommendations of a report on a pilot ‘Tourism levy’ in Galway City, which could be applied across local authorities in Ireland as a means to underpin investment in tourism, and aligned infrastructure and services. Enabling legislation is required to progress this pilot, under the provisions of the Local Government Act as amended.
Tourism levies are becoming a feature of local government funding across the OECD, including in the UK, France, Spain, Italy, and Germany. This means that tourists as well as local communities are contributing to the socioeconomic development of the area – with the burden of providing infrastructure and services shared by those benefitting from their delivery.
Galway City is the third most visited city in the Republic of Ireland and operates as a visitor hub for County Galway and an access point to the Wild Atlantic Way.
Galway City has over 9,762 bedspaces of all standards, excluding campus accommodation which adds 2,475 bed spaces in the peak tourism season.
With 2.4 million visitors per annum, Galway City experiences sustained pressure on public infrastructure and services that support both residents and visitors. A pilot tourism levy implemented in Galway City could generate significant, ring‑fenced income to support tourism related services and facilities.
Potential funded areas could include enhanced street cleaning, litter management, public lighting, green spaces, playgrounds, multi‑use games areas, walking routes, cycle parking, and public realm improvements, as well as support for key civic and cultural amenities such as Leisureland, the Town Hall Theatre, the Black Box Theatre, and Galway City Museum.
The introduction of a tourism related contribution would help ensure that the cost of providing and maintaining these services is more equitably shared, reducing the current burden placed on commercial ratepayers while directly reinvesting tourism income back into the city for the benefit of visitors and residents alike.
The ‘Case for the review of the funding status of Galway City Council’ and ‘Outline Case for the introduction of a Tourism levy in Galway City’ reports are available on www.GalwayCity.ie