Dáil Éireann Debate, Wednesday - 25 September 2013
202. Deputy Michael McGrath asked the Minister for Transport, Tourism and Sport the reason he did not proceed with the suspension of the air travel tax as announced in the 2011 jobs initiative and provided for under the Finance (No. 2) Act 2011; and if he will make a statement on the matter. [39944/13]
View answerThe €3 flat rate charge has applied since 1 March 2011. The purpose of the offer to abolish the tax was to stimulate inbound tourist traffic. Overall the response from the airlines to date has been inadequate. Data for 2012 from the three State Airports shows a modest increase in overall passenger numbers of 0.5% compared to 2011. However, a number of factors influence demand for air services so it is not possible to attribute increases or decreases of this magnitude to any one factor.
There have been some positive developments in relation to additional capacity on US-Ireland routes for 2013 linked to both general traffic demand and the expected increased traffic linked to the Gathering. There has been an increase in passenger numbers through the three State Airports of 4.2% for the first eight months of the year. The Government has made it clear that it will need to see a significant increase in capacity and routes before consideration can be given to abolishing the tax. Its offer to abolish the tax in return for a meaningful increase in capacity and the restoration of cancelled routes remains open.
