Hotel rooms in Dublin could be facing a 1 percent levy.

The idea was first raised by the States Commission on Taxation and Welfare and it's now been backed in a report by Dublin City Council.

It's believed the hotel tax could raise more than 12 million euro a year for the city.

Many Dublin councillors feel the levy could be used to help fight crime and rejuvenate O'Connell Street but some rural TDs have raised concerns about how expensive it would make an overnight stay in the city .