Travel tax take falls 20% as Ryanair threatens to pull more Shannon flights

THE Government’s take from the controversial air travel tax has fallen 20% on last summer’s figures.

This news comes as Ryanair threatens to pull more flights from Shannon Airport if costs are not reduced.

Figures supplied by Revenue also show it collected €1 million less in July than on the same month last year from the travel tax.

In the summer months of May, June and July the Government collected €26.4m on the tax compared with €33m in summer 2009.

Figures show €10.9m was collected in July, €9m in June and €6.5m in May.

The Government announced the introduction of the travel tax in 2008 and stated at the time that it expected to raise €150m in a full year. It later revised that downward to €125m.

However, in the first six months of this year, the take is almost €45m. Last year’s take was €84.4m for eight months as the tax came into force in May 2009.

Ryanair has constantly demanded that the Government abolish the departure tax saying that if it did the airline would add more routes in Ireland.

Bloxham stockbrokers’ analyst, Joe Gill, estimates the tax could cost the economy around €450m a year as many tourists will stop coming to Ireland.

The tax means every person leaving Ireland travelling over a certain distance has to pay an extra €10 per flight.

Latest figures from the Irish Aviation Authority shows there were 7,800 commercial flights at Shannon in the first six months of the year, 6,480 fewer than the same period last year, representing a 45% drop.

In the same period, Cork fell by

almost 12%, and Dublin by 15%.

Meanwhile, Ryanair said it was an “insane decision” by Shannon Airport to increase passenger charges by 33% from €9.50 per passenger to €12.65 from November

1. Chief executive Michael O’Leary said: “This is yet another overnment sponsored attack on Ireland’s declining tourism industry and will cause further devastation to traffic and tourism numbers in Shannon and the mid-west region.”

Ryanair called on the Department of Transport to order the DAA reverse these price hikes, “before further damage is done to Shannon Airport traffic, tourism and jobs this winter”.

The airline said that if these price increases are not reversed then it will shortly announce further flight and traffic cuts at Shannon.

“The Government’s €10 tourist tax has also made Shannon Airport totally uncompetitive as a gateway to the west of Ireland.

“We call again on the Government to break up the DAA monopoly and scrap the €10 tourist tax.”