The Government is unlikely to move to introduce a so-called Dublin tourist tax, it is understood.
Last week, it emerged that four local authorities in the capital were working on an agreed proposal to tax hotel rooms.
Councillors have indicated that the money could be used to improve amenities in the capital.
However, it is understood that Minister for Tourism Peter Burke is focused instead on the short-term letting bill and is not planning to introduce a new tourism tax anytime soon.
One Government source said that while Ireland does provide value for tourists, it is not a low-cost destination, so adding to costs would not be a good idea.
In addition, Minister for Culture Patrick O'Donovan has said he would not welcome a tourist tax and "the last thing we need to do" is to add more costs to people.
He said councils can come together and propose the idea, but ultimately, the levying of tax is an issue for the Minister for Finance.
A tax would have to be brought forward in the Finance Bill.
