Hanafin says travel tax could be scrapped

THE CONTROVERSIAL €10 air travel tax could be scrapped if those opposed to it came up with ways of boosting visitor numbers to Ireland, Minister for Tourism Mary Hanafin has said.

Abolishing the tax was “up for consideration” as it had not yielded the revenues that had been expected, the Minister added.

In a clear reference to Ryanair, Ms Hanafin warned that there was “no point in thumping the table to get rid of the air tax unless we hear what we are going to get in return for it”.

She told Fáilte Ireland’s annual conference yesterday that the tax would only bring in €80 million because of a drop in visitor numbers instead of a projected €125 million, but “€80 million is €80 million and every million euro is hard fought for”.

Ms Hanafin said she had discussed the tax with both Aer Lingus chief executive Christoph Mueller and Ryanair’s Michael O’Leary. “Those airlines who want it removed, I’d like to know what we would get in return?”

Ryanair responded yesterday by saying that scrapping the tax would not be enough. It also asked for a reduction in costs at Cork, Dublin and Shannon airports to “internationally competitive levels” and a reversal of the Dublin Airport Authority’s 40 per cent price increase at Dublin airport.

Ryanair spokesman Stephen McNamara said: “We have already delivered a detailed growth plan to the Minister committing to six million additional passengers within 18 months if these costs and taxes are reversed.”

Aer Lingus, which yesterday announced new routes and increased frequencies for summer 2011, said it would welcome any moves to scrap the tax. “We believe it has a significant negative impact on demand for air travel into and out of Ireland.”

Ms Hanafin also said Dublin should have a permanent James Joyce exhibition as part of the city’s status as a Unesco City of Literature, one of only four in the world.

Fáilte Ireland chairman Redmond O’Donoghue referred to the “Was it for this?” Irish Times editorial last week and said the whole narrative surrounding the question was “overblown, unbalanced, somewhat hysterical, lacking in perspective and grossly unhelpful”. He added: “I suppose it is of little consolation that we have endured worse times”.

The writer and restaurant critic AA Gill said Irish people should not feel humiliated by the presence of the IMF, remarking that money was not what made Irish people famous. “When God was handing out hospitality, he said you’d be shit with money, but you’d have the craic.”

Meanwhile, Aer Lingus has cancelled two flights between Dublin and Lisbon today, due to a strike in Portugal.