Hanafin welcomes travel tax plan

PROPOSALS BY the incoming government to abolish the €3 travel tax – subject to a deal being done with the major airlines – have been welcomed by outgoing Minister for Tourism Mary Hanafin.

The proposals to scrap the tax contained in the Fine Gael-Labour programme for government are dependent on carriers Ryanair and Aer Lingus reopening closed routes and bringing more tourists into Ireland. The incoming government warned last night that “if no deal can be done, there will be no reduction in the tax”.

Attending the Irish Hotels Federation annual conference in Ballyconnell, Co Cavan, yesterday – her last official engagement – Ms Hanafin said the new government was “absolutely right. They have put down the challenge, put down the challenge to the airlines. Ryanair particularly, were the ones who were looking for it. Now it is time, dare I say it, to put up or shut up”.

Ms Hanafin said the outgoing Government had reduced the travel tax to €3 “until the end of the year to see what deal we could get from the major airlines” and it was now time the airlines delivered.

She noted the incoming government’s proposal was dependent on routes being reopened and she said she wished the new administration the “best of luck” with that.

She hoped tourism would not be lost in an amalgamation of ministries in the new administration and advised the members of the government to “leave the country” for St Patrick’s Day and end the “mealy-mouthed” comments about ministerial representation abroad on the national holiday.

Ms Hanafin was speaking after Niall Gibbons, Tourism Ireland chief executive, revealed it was spending €1 million on encouraging people to visit Ireland on St Patrick’s Day alone. The organisation has also targeted mainstream British television – Channel 4, Channel 5 and ITV – instead of the more usual satellite channels, with an advertising campaign which gets under way next week. Advertising campaigns have already begun in Germany and France.

Tourism Ireland, which has a North-South remit to attract foreign visitors to all counties, is pinning its hopes for recovery in the market this year on attracting an additional 240,000 visitors, half of them from Britain. In this regard Mr Gibbons said the visit of Queen Elizabeth in May would be hugely beneficial. Mr Gibbons said additional capacity into Ireland would become an significant issue as Ireland “stepped up” to meet its strategic target to attract another two million visitors by 2015.

However, Irish Hotels Federation president Paul Gallagher told the 400 hoteliers meeting that the “duopoly” between Aer Lingus and Ryanair was “not good” for the hotel industry. Efforts must be made to encourage carriers from France, Germany and Britain to come here, adding that “we have no Easy Jet, we have no Flybe and no German Wings. These carriers don’t come here.”