Hopes for tourism boost as €3 airline tax scrapped

The decision to abolish the €3 air travel tax has been broadly welcomed by the aviation and tourism sectors.

Finance Minister Michael Noonan said the Government intended to cut the air travel tax to zero from Apr 1 next year but, in return, expected airlines to develop new routes and increase traffic volumes.

“I expect the airlines to utilise this initiative to develop new routes and build traffic volumes, thereby helping tourism and I have reason to believe they will do so,” he said.

Echoing the view, Tourism Minister Leo Varadkar said the tax could be re-imposed next October if the response from the aviation sector was not sufficient.

Director of communications with Aer Lingus, Declan Kearney welcomed the move, saying the tax lessened the demand for air travel

“The abolition of the air travel tax is an additional positive step that will benefit consumers, the hospitality sector, airports, airlines and the broader Irish economy,” he said.

Ryanair also welcomed abolition of the tax but declined to say whether it would expand its services as a result of the decision. The airline’s chief executive Michael O’Leary has long been a critic of the tax describing it as “insane and simply tourism suicide”

Commercial director with Aer Arann Simon Fagan further urged the Government to bring forward the date for the abolition of the tax to Jan 1.

“Setting an abolition date of Apr 1 risks undermining the bounce this decision offers. The early days of a new year are traditionally a time when people make travel bookings for the year ahead. St Patrick’s Day, Easter and school holidays are all key travel occasions in the first quarter of the year. We risk losing out on these and other bookings if the travel tax still applies,” he said.

Dublin Airport Authority (DAA) — which operates Dublin and Cork airports — described the move as positive for Irish aviation.

Chief executive of Shannon Airport, Neil Pakey, said it was a “proactive” move by the Government to support the industry.

“For international airports like Shannon, this initiative may help tip the balance in our favour when it comes to convincing airline customers to enhance existing and also put on new services.”