Ryanair: What the Govt gives the DAA takes away

Ryanair has said that Irish tourism will "continue to be strangled by a €3 tourist tax" after today's Budget announced by Finance Minister Brian Lenihan.

The low-cost airline also condemned the "high and increasing" charges levied by the Government-owned DAA airport.

Ryanair’s Michael O’Leary said: "Today’s budget proves yet again that this Govt had no tourism policy. The reduction in the €10 tourist tax to €3 was forced on them by the EU Commission’s infringement proceedings. It is regrettable that this Govt didn’t have the balls or vision to go the whole way and scrap this stupid tourist tax altogether, when at this new €3 level it will bring in less than €35m each year.

Ryanair also confirmed that the reduction will not do anything to reverse the recent decline in Irish air traffic and tourism, when the DAA intends to raise airport charges by another €3 per departing passenger from Jan 2011.

They said: "So while the Govt reduces the travel tax by €7, the DAA has increased charges at Dublin Airport by €11 per departing passenger during 2010 and 2011. What the Govt gives on one hand, the Govt owned DAA airport monopoly takes away on the other."

However the Irish Hotels Federation (IHF) welcomed the reduction in the air travel tax, saying that this in conjunction with the proposed traffic incentive scheme at our airports will inject some much needed growth into the tourism sector.

“As an island nation, increased accessibility via our airports is a vital factor in growing Irish overseas visitors," said IHF Chief Executive Tim Fenn.

"By reducing the travel tax, the Government has lessened this barrier and it should have a positive impact to assist in increasing visitor numbers from our key markets such as Britain and Germany."