THE Government has raked in almost €58 million from the controversial air travel tax in five months.
The €10 tax has proved hugely unpopular among airlines and tourism groups who have called for its abolition ever since it was announced in the budget last year.
The Government said at the time of announcing the tax that it is expected to raise €95m in 2009 and €150m in a full year.
However, based on the five-month figures, it is well behind the full-year target.
The tax was introduced in April and in that month it raked in €9.6m, rising to a peak of €12.5m in July. August’s take was €12.4m.
The Tourism Renewal Group this week called for the €10 levy on each departing passenger to be scrapped, warning it could affect Ireland’s competitiveness as a top tourist spot.
Fine Gael accused Arts Minister Martin Cullen, who set up the advisory group, of burying his head in the sand and the party’s arts, sport and tourism spokeswoman Olivia Mitchell branded the air tax a disaster.
Chaired by businessman Maurice Pratt, the renewal group said the environment for Irish tourism had "changed radically for the worse since 2006," adding that change had been at "warp factor speed".
This call for the scrapping of the tax follows similar pleas from Ryanair and Aer Lingus. The tax of €10 per passenger applies to those travelling more than 300km from Irish airports.
Ryanair said the tax is responsible for the fall in numbers at Irish airports.
Ryanair spokesman Stephen McNamara said: "Ryanair has already announced the removal of two more aircraft from Dublin and Shannon this winter.
"Irish traffic, tourism and job losses will continue to collapse if the Government fails to axe the tourist tax."
Transport Minister Noel Dempsey insists the decline in passenger numbers is not due to the tax, which followed similar moves in other European countries. The Belgian and Dutch governments though, have since reversed their tax decisions.
Employers group IBEC has also called for the travel tax to be "re-examined" and its transport executive Paul Sweetman said: "With passenger numbers falling and the tourism sector being hit hard, it is questionable whether the air travel tax is bringing any net benefit to the exchequer."
a d v e r t i s e m e n t
This appeared in the printed version of the Irish Examiner Saturday, October 10, 2009
