Airport taxes - Charges can hurt tourism

LOCAL government in the Canary Islands have decided to remove airport taxes this winter.

Michael O’Leary of Ryanair has pointed to this initiative as one from which this country could learn.

He contends that the €10 airport tax imposed on foreign travel by the Government here has been disastrous for the tourist industry, and has led to a collapse in traffic from Dublin Airport, which was down by 15% in June alone.

By contrast, he contends that tourism in countries like Belgium, Holland, Greece and Spain has grown rapidly since it scrapped tourist and airport taxes.

Ryanair have cited airport taxes as a primary reason for significant cut backs in the number of flights to and from foreign destinations from Dublin and Shannon.

Mr O’Leary’s primary interest is and remains a healthy bottom line for his company but perhaps the low tax policy he advocates and which has been adopted by authorities in the Canary Islands could well, if adopted by Irish airports, make Ireland a more attractive destination for foreign airlines and provide the stimulus so badly needed by the domestic tourism market.