John O'Mahony (Mayo, Fine Gael)

I am glad to contribute to this important debate and I commend my colleague, Deputy Olivia Mitchell, for bringing forward the motion at this time. I also wish to congratulate Deputy Mary Hanafin on her new appointment as Minister for Tourism, Culture and Sport. She has shown herself to be an independent thinker in the past and I hope she will address herself to the issues we are debating tonight. It would be a great start for her to do so. I offer her my congratulations.

The introduction of tax measures, pay cuts and income levies over the last 18 months means that nearly half a million people are out of work. Despite protestations from the Government that the worst is over and that we have turned the comer, the evidence on the ground is the opposite. Continued calls and appeals for a stimulus package to go alongside the cutbacks have fallen on deaf ears. We are told that the only show in town is to save the banks, sort out the financial mess and jobs will follow. Not only is there no stimulus package but one service industry, namely tourism, that could provide at least a partial solution is further penalised with the travel tax. It would be great to have a stimulus package but instead of solutions we got further problems. Instead of hope we have more despair and instead of increasing the number of tourists arriving on our shores, we have had the opposite. Almost 1 million fewer tourists came here last year, which is back to 2005 levels.

Nobody is suggesting that the travel tax is responsible for all of the fall-off but it is a major contributory factor. The evidence is there that once airlines drop their prices, as Aer Lingus and Ryanair have done, there is an immediate surge in passenger numbers. There would be a similar bounce if the travel tax was removed. At this stage, it is not just the vested interests, such as the airlines and tourism bodies, that are outlining the damaging effects of the departure tax; independent analysts are now giving evidence of its effect. The example of other countries that have scrapped their tourist taxes, such as Spain, Greece, Belgium and the Netherlands, should now be followed in this country.

My own county of Mayo and the north west region, which has wonderful tourism potential, is a case in point. Ireland West Airport Knock has, against all the odds, helped to stimulate tourism in the past 25 years. Passenger numbers at the airport have increased year by year and the last thing that is needed is another obstacle to its success. Whether they are visiting for the scenery, activity holidays, fishing, walking or pilgrimages to Knock or Croagh Patrick, the economic value of every passenger who comes through the airport and stays for even two or three days means that tourism jobs in hotels, bed and breakfasts and adventure centres are either created or protected. Why should we pick visitors' pockets when they are departing our country after spending their money among our people? Passengers departing from Ireland West Airport paid €2.5 million in travel tax in 2009. Interestingly, until the introduction of the travel tax at the end of 2008, the airport was the fastest growing airport in Ireland, with a 154% increase in passenger numbers. Even in 2009, numbers were maintained at 2008 levels, while other airports experienced a 20% drop.

The €2.5 million from the travel tax, if it were removed, would allow the airport to develop its great potential. Ireland West Airport Knock is by far the largest airport in the BMW region, accounting for 83% of all overseas passengers flying directly into the region from 25 international destinations. Independent analysis by Goodbody Economic Consultants has established that passengers going through the airport make a contribution of €62 million to the economy in tourism spending, and tax and PRSI from the airport are worth €8.7 million. It must be pointed out that on top of the imposition of the travel tax, Knock Airport must pay 100% of its air traffic control charges, which is not the case in State airports.

What is needed is stimulus rather than extra taxes, encouragement rather than obstacles. I commend the motion to the House.

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