Michael Noonan (Limerick City, Fine Gael)

To be clear, the commencement of this measure is subject to an agreement being reached with the airlines to bring in additional passenger numbers. The Minister for Transport, Tourism and Sport is holding discussions in that regard. Furthermore, as with the targeted VAT reductions, a review of this measure will be conducted before the end of 2012 to evaluate its success in bringing in additional passenger numbers. If it is not being successful, the air travel tax will be reapplied. Consequently, the relevant legislation will remain in place to allow the tax to be recommenced if there is no appropriate activity in the market.. The cost of this measure, based on a possible implementation date of 1 July 2011 is €15 million in 2011, €90 million in 2012 and €105 million thereafter. The suspension of the air travel tax is one of a number of approaches being taken to revitalise the tourism industry as part of the jobs initiative. Other elements include a new scheme of discounts on airport charges, which has been agreed by the State airports in consultation with the Minister for Transport, Tourism and Sport and the airlines. A tourism marketing campaign will begin, which will be particularly focused on Ireland's major source markets such as the UK.

In addition to these measures, the Minister for Justice and Equality will announce a major reform measure in the visa application system for entry to Ireland. This initiative will make it easier for overseas visitors, including visitors from crucial emerging markets, to come to Ireland without having to incur the trouble and expense of applying for separate visas once they have already obtained visas for the UK. Essentially, the holders of such visas will not require a separate visa to come to Ireland. I know that as well as presenting business and employment opportunities for the coming season, this measure will provide a great opportunity for tourist service providers to capitalise on the hundreds of thousands of visitors who will travel to the London Olympics next year.

See this speech in context