Leo Varadkar (Dublin West, Fine Gael)

The Minister for Finance announced the proposed suspension of the €3 travel tax as part of a three-pronged strategy aimed at increasing inbound tourism in the jobs initiative in May. This strategy involved not only the proposed suspension of the travel tax, but also the introduction of a new growth incentive scheme by the Dublin Airport Authority, DAA, and more targeted and co-operative marketing of new routes from key source tourism markets by Tourism Ireland, the DAA and airlines to encourage more tourists to fly into Ireland.

The Government made it clear from the outset that the travel tax would only be suspended if the airlines responded positively to these initiatives in terms of restoring routes and capacity. My officials and I held a number of meetings with the main airlines, Ryanair and Aer Lingus, to establish what new services they might introduce or reinstate to take advantage of the incentives on offer from the Government and DAA but their response was disappointing and the Government decided to retain the travel tax pending a further review next spring. I also wrote to more than 20 other airlines currently servicing the Irish market or who may be interested in entering the Irish market informing them of the initiative.

I am not currently in active discussions with the airlines on this initiative but I have undertaken to re-examine it if they are prepared to introduce additional routes and capacity for summer 2012 and the airlines know that I remain open to discussions with them on this basis.

In the meantime, I have the agreement of the Ministers for Finance and Public Expenditure and Reform that a significant proportion of the revenue generated from the retention of the tax will be made available for a targeted co-operative marketing effort. Tourism Ireland is finalising plans in this regard at present in conjunction with the airlines, airports, ferry companies, tour operators and others.

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