Ryanair condemns tourist tax half measure
07-Dec-2010 Ryanair, Ireland’s largest airline, today (7th Dec) condemned the fact that the Irish Government still has no tourism policy and Irish tourism will continue to be strangled by a €3 tourist tax and the high and increasing charges levied by the Government owned DAA airport monopoly.
While the reduction in the tourism tax from €10 to €3 per departing passenger in budget 2011 is welcome, this was clearly forced on the Irish Govt by the EU Commission's infringement proceedings against the illegal €10 tax. Ryanair condemned the Govt for not going the whole way and scrapping this useless tourist tax altogether as the Dutch, Belgian and Spanish Govts previously have.
Ryanair also confirmed that this tax reduction, which will reduce revenues from the tourist tax from €80m currently to less than €35m p.a. will not do anything to reverse the recent decline in Irish air traffic and tourism, when the Govt owned DAA monopoly intends to raise airport charges by another €3 per departing passenger from Jan 2011. So while the Govt reduces the travel tax by €7, the DAA has increased charges at Dublin Airport by €11 per departing passenger during 2010 and 2011. What the Govt gives on one hand, the Govt owned DAA airport monopoly takes away on the other.
Ryanair's Michael O'Leary said:
"Today's budget proves yet again that this Govt had no tourism policy. The reduction in the €10 tourist tax to €3 was forced on them by the EU Commission's infringement proceedings. It is regrettable that this Govt didn't have the balls or vision to go the whole way and scrap this stupid tourist tax altogether, when at this new €3 level it will bring in less than €35m p.a. While the Govt reduces the tourist tax by €7, the Govt owned DAA monopoly has increased airport fees by over €11 per departing passenger over 2010 and 2011.
"Irish traffic and tourism can be restored to growth. Ryanair has submitted proposals to the Govt, to grow traffic and tourism dramatically, but only when the tourist tax is scrapped and the high cost DAA airport monopoly broken up, so that competition between terminals at Dublin Airport and between Cork and Shannon airports is allowed to deliver competitive airport fees and improved passenger services where the DAA monopoly has failed.
"One has to ask why airport fees are rising yet again in January to pay for the DAA's €1.2bn white elephant T2, and their overpaid semi-state fat cat boss who earns over €600,000 p.a., while the airport company he runs loses money. "