Dublin airport expansion ‘vital for tourism’

THE planned expansion of Dublin Airport must be urgently completed as it is a vital link in the future growth of the tourism industry, it was warned yesterday.

Richard Bourke, president of the Irish Hotels Federation (IHF), said industry would be stunted unless the construction of an extra pier at the terminal was completed on schedule.

“Delays in the delivery of crucial infrastructural projects have long impacted on the spread of tourism across the country.

“We have waited 20 years to reach this stage and the Dublin Airport Authority’s (DAA) awarding of the contracts is most welcome,” he said.

At the IHF’s 68th annual conference in Dublin, he claimed: “The lack of capacity is already undermining UK passenger numbers through the airport. Whilst this impact is currently slight, if the new capacity is not made available swiftly, this could eventually be a huge issue for our most important overseas market.”

He said any delays in the airport’s expansion plans would negate the long-term impact on visitor numbers which could be expected as a result of events such as the Ryder Cup.

“High-profile events like the Ryder Cup are hugely beneficial and unique to showcase Ireland internationally both as a business and leisure destination and to increasing our visitor numbers.

“However, the sad truth is that the lack of capacity at Dublin Airport means that we cannot accrue the full benefits that could be expected.”

The IHF warned Pier D must be completed by the end of 2007 at the latest, with the second terminal finished by 2009.

Mr Bourke claimed underlying capacity issues were highlighted by figures from the DAA indicating a decline in the number of passengers travelling to and from Britain.

“It is worrying upon analysis to see that there has been a 1% decline in numbers to and from the UK attributed partly to capacity reasons,” Mr Bourke said.

“It reduces the impact of marketing efforts if airport capacity results in visitors’ first and final engagement on our island being less than positive.”

Mr Bourke also warned the prohibition on VAT refunds for conference accommodation costs was a serious deterrent in attracting more of the 40 billion global business tourism market to Ireland.

He said: “Ireland remains the only country in Europe with a VAT rate on hotel accommodation in excess of 10%, where VAT is not refundable on such business tourism-related expenses.”