Two businesses put their expansion plans on hold

Local reaction:More than 50,000 tourists a year and tens of millions of euros in investment will be lost to the west if Aer Lingus goes ahead with its decision to end its Shannon-Heathrow service, business interests in the region have claimed.

Two of the Shannon region's largest tourist operators, the five-star Dromoland Castle and Doonbeg golf resort, said they were putting on hold expansion plans valued at €80 million in response to the Aer Lingus move.

Shannon Development, meanwhile, estimated that more than 50,000 of the 350,000 passengers who used the Heathrow service each year were tourists.

Job losses were also forecast with one Ennis hotelier, Allen Flynn, saying that the ending of the service would result in a drop of 15-20 per cent in turnover. There would be a corresponding percentage drop in the 130 people employed at the Old Ground Hotel in Ennis, Mr Flynn said.

"The effect on tourism business will be just phenomenal. We did a survey of guests in the hotel on Tuesday night and 28 of the 170 guests had come via Heathrow."

Shannon Development director of tourism and heritage John King said the Heathrow link was "critical" for tourism in the west.

Mr King said the estimated 50,000-plus tourists on the Shannon-Heathrow route "represents a significant element of the tourist economy".

A Shannon Development subsidiary, Shannon Heritage, operates a number of visitor attractions, including the Bunratty Castle and Folk Park, last year receiving more than 640,000 visitors.

"Without the link, there will be dramatic impacts on tourism in the region," Mr King said.

"We can only speculate on the losses if we do lose the Heathrow link and we cannot allow the impact to take place. I believe that Aer Lingus has underestimated the value put on the Heathrow link by business and tourism people in the midwest."

Dromoland Castle got planning permission for a €30 million expansion, which includes 32 luxury apartments, only on Wednesday. Its managing director Mark Nolan confirmed yesterday that the plans were now on hold.

"We had a board meeting last night," Mr Nolan said. "The view of the board is that we put on hold any development in view of the current Shannon debacle. This is not scaremongering, we are being realistic."

He added: "It is worrying, because we won't really know how much business we have lost until six months after the service is gone." Mr Nolan said it was very hard to see the rationale behind Aer Lingus's decision.

General manager of Doonbeg golf club Joe Russell said the decision had resulted in a "rethink" by the golf club in spending a further €50 million on the resort.

The €150 million golf club employs 270 people and has planning permission for nine luxury suites and 53 holiday cottages.

"What's the point in continuing to build if you cannot fill them?" Mr Russell asked. "It is pointless millions being spent on marketing this region if people cannot access here."