Hotels Group Calls For Abolishment Of Air Travel Tax

Business & Finance - Tourism

Friday, 10 September 2010 14:30

Written by Noel Cotter

The Irish Hotels Federation (IHF) today called on the Government to abolish the €10 departure tax in order to reverse the disastrous decline in visitor numbers.

Paul Gallagher, President, IHF, stated that Irish tourism is now at a tipping point with announced reductions in capacity by Ryanair adding to the perilous state of the sector and posing an additional threat to the viability of tourism businesses across the country.

"With seat capacity into Ireland now reduced by 75,000 a week on 2009, the recent decisions by Ryanair to reduce capacity at Shannon, Cork and Dublin airports and the very negative outlook from Aer Lingus highlight the need to provide greater incentives for airlines to increase capacity", he added.

Mr Gallagher continued, “We are calling on Minister Hanafin to intervene at cabinet level to ensure the €10 departure tax on airlines is abolished or, at the very least, deferred for two years to allow industry and carriers a window of opportunity to achieve growth in visitor numbers. At this stage, the tax is doing more harm than good to the economy with the exchequer forfeiting substantial revenue including lost employment tax and VAT.”

“Carriers into Ireland will reduce capacity further by removing there assets to more profitable destinations unless industry and Government adopt joined up thinking in relation to the barriers to profitable routes. With over 200,000 people employed by the sector across the country, any further decline in the sector will result in significant job losses.”

Mr Gallagher said: “As an island nation, increased accessibility via our airports and ports is a vital factor in promoting Irish tourism. It’s now time for the Government to work hand-in-hand with airlines and ferry operators to address falling capacity levels and ensure routes in and out of Ireland can be operated on a profitable basis. This will require immediate action to remove all unnecessary barriers and reduce charges at airports and ports.”