Brian Lenihan Jnr (Dublin West, Fianna Fail)

In the past few years, we saw exceptional growth in air travel both to and from Ireland. Irish residents in many cases made several trips abroad in a calendar year. The downturn in the economy and increased economic uncertainty has seen a change in behaviour in this regard. Consumers are not taking as many foreign trips as they did at the height of the boom. All Members of the House know that and it is a pretence to state it is caused by the air travel tax. That is the reason for the fall in passenger numbers. To suggest that people are not travelling because of a tax of €10 is tendentious. An air trip abroad generally involves expenditure of several hundred euro. Singling out the €10 tax charge as the major disincentive for the intending traveller is stretching credibility. How can it be argued that the tax is more of a disincentive, for example, than the non-discretionary on-line check-in fee of €5 per flight or €10 per return flight? That is to single out just one of the myriad charges imposed by the airlines.

The introduction of a modest air travel tax is an important revenue raising measure in the context of the financial challenges we now face. The Government regards this tax as a fair tax in the current circumstances and I have no immediate plans to abolish it. It will raise approximately €125 million in a full year in circumstances where those additional revenues are required to fund badly needed services.

Every sector can argue against taxation. Last night, my colleagues on this side of the House referred to the fact that having a debate on tourism which focuses on the €10 tax really misses the point. Ultimately, airlines respond to consumer demand. They will fly where people want to go. Everyone in the tourism sector, supported by Government, must ensure that our tourism experience is of a top standard and that the industry is flexible to meet the changing demands of holidaymakers. My colleague, the Minister of State, Deputy Haughey, last night outlined the significant Government investment in tourism. My colleague, the Minister for Tourism, Culture and Sport, Deputy Mary Hanafin, will make the extension of numbers and of the tourism industry a key priority in her Department in the years ahead. The sector faces challenges but we are committed to supporting this valuable industry with the resources available to us.

Deputy Upton made the point that we need to focus on emerging markets, particularly Asia, for growth in tourism numbers. However, she noted that the visa application process in some Asian countries can be slow and therefore hampers any such growth. That issue falls within the remit of the Department of Justice and Law Reform and I understand that it has stated it is open at all times to suggestions on how the visa service rules and requirements can be improved to meet the needs of all sectors affected by visa issues, including the tourism sector.

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