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Ryanair calls on Irish Government to abolish tourist tax

31-Mar-2009
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Ryanair calls on Irish Government to abolish tourist tax

Tags :UK, Ryanair, Tourism, tax

Ryanair called (30-Mar-09) on the Irish Government to take immediate steps to reverse the current collapse of traffic and tourism at the Irish airports by:


 
1.      Scrapping the failed EUR10 tourist tax.
2.      Preventing the public sector unions closing Dublin Airport on Thursday next by calling in the army to undertake airport security and ATC services.
 
Ryanair highlighted that only 4 European countries had so far proposed a tourist tax. Two of these countries (Belgium and Holland) have now scrapped this tax in the face of declining traffic and tourism numbers. The UK which introduced a GBP10 APD tax continues to suffer substantial traffic and tourism losses at almost all of its international airports. Ireland, as an island nation, which is heavily dependent on tourism, cannot stimulate visitor numbers by taxing the very people we are trying to attract. From 30-Mar, every passenger departing from Dublin Airport will suffer a EUR10 tourist tax payable to the Government, on top of the EUR15 departure fee to the Government owned DAA monopoly. At a time of recession, Ireland is now a high cost, uncompetitive tourism destination, where visitors are being screwed twice over the by Government and the Government airport monopoly upon departure.
 
Ryanair also criticised the public sector union strike action planned for Thursday next which if it proceeds will close Dublin Airport. It is unacceptable at a time of recession and financial crisis that overpaid, under-worked, protected public sector workers would threaten to close Ireland’s international airport. The image of Ireland’s economy has taken a battering in the international press in recent months and the last thing Ireland needs is its main international airports being closed by a bunch of semi-state employees, who are not facing any threat to their job security. It is imperative that the Government put the army on stand by to take over services such as airport security and ATC next Thursday if these public sector headbangers go ahead with this crazy strike.
 
Speaking today, Ryanair’s Michael O’Leary said:
 
“At a time of deep recession in the Irish economy, the stupidity of this Government in trying to tax tourists is extraordinary. The Belgian and Dutch Governments have already realised that taxing tourists kills traffic and it is not too late for the Irish Government to recognise that this travel tax is a stupid mistake and scrap it. If this Government wants to save EUR125m per annum, then they should cancel the Dublin Airport Metro, which costs over EUR5 billion and will save them more than EUR250m p/a or double the travel tax.
 
“The Irish tourism industry is an enormous employer and it responds rapidly to growth or decline. Traffic and tourism will continue to collapse in Ireland this year under the weight of this stupid and self-defeating tourist tax and the high costs imposed on air passengers by the high cost, inefficient, Government owned DAA monopoly.
 
“Finally, there is no place in this recession for Ireland’s airports being shut down by a bunch of headbangers in the public sector unions at the DAA airports. These people face no threat to their employment and are not facing pay cuts either. If this unjustified strike goes ahead on Thursday, then the Government should impose either a pay cut of 12% on all DAA’s employees (or job cuts of 12%) to reflect the 12% decline in traffic, which the DAA will suffer this year. If these loonies intend to hold Irish tourism and the Irish economy to ransom, then the Government should respond in similar measure by cutting their pay or making 12% of these people redundant”.

 

(c) Centre for Asia Pacific Aviation. Date posted: 31-Mar-09



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