Tourism chief warns over EU flights tax plan

A proposal to slap an air ticket tax on flights throughout the European Union to finance overseas aid would damage Ireland’s tourism trade, it was warned today.

John Power, chief executive of the Irish Hotels Federation (IHF), said the Government must reject the proposals for the €10 on every flight departure in the EU.

He warned that Ireland’s unique position as an island must be taken into account when transport costs were being considered.

“This tax, if introduced, would seriously undermine the successful growth of Ireland’s air access routes, and in turn our tourism growth objectives,” Mr Power said.

“The reality is, if Ireland is to achieve its tourism targets, we need increased air routes, and a second terminal to handle passenger numbers, not a restrictive tax that puts a burden on consumers.”

Mr Power said the proposed tax on departures could negatively impact on the competitive low-cost flight market in Ireland.

Finance Minister Brian Cowen said at a recent meeting of the Council of Economic and Finance Ministers (Ecofin) in Luxembourg that he would not favour an EU-wide tax.

Mr Cowen ruled out the €10 departure tax saying it would mount up to €20 on a return journey and mean a significant increase in fares.

Other tourism-dependent countries like Spain, Portugal, Cyprus and Malta also opposed the tax.

Mr Power warned the tourism industry employed around 150,000 people and generated a revenue of more than €5bn in 2004.

“The federation is fully supportive of measures to generate development aid for Third World countries. However, we believe that the EU must consider alternative measures in order to do so,” Mr Power said.

“The recently mooted jet fuel tax, and now this latest air ticket tax, have wider implications for tourism throughout the EU and cannot be introduced if we hope to compete for visitors on an international scale.”

Figures show that 6.4 million overseas visitors travelled to Ireland last year - with around 75% arriving by plane.