Jerry Buttimer (Fine Gael)
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The Minister of State is very welcome. I appreciate his being here. I know this is not his area of specialty as a Minister of State.

The aviation industry and the hospitality sector have been decimated in the past two years. I welcome the opportunity with this Commencement matter to raise the need for an aviation and hospitality tourism recovery task force strategy. My Commencement matter is timely as the Irish Tourism Industry Confederation published data just this morning which show comparisons with 2019, three years ago. Hotel occupancy in February of this year was 57% that of 2019. The number of inbound tourists from North America was down 48%, or 44,000, from 2019. Most worrying is that the number of tourists from Great Britain was down 40%, or 152,000, on the figure for 2019, with the number from the rest of the world down 52% and the number from continental Europe down 35%.

I think everybody in the aviation, hospitality and tourism sectors recognises and would commend the Government on the supports given. The summer of 2022 is now already set in respect of our aviation sector. We have a lot of air capacity, with seats and routes to and from Ireland reintroduced. The potential for tourism numbers to grow this summer is quite good. I am told the increase will be 70% or thereabouts on the 2019 level.

However, there are challenges. As the Minister of State will know, we are an island nation depending primarily on our aviation sector for connectivity. Inbound passenger numbers to our main airports are significantly down, by almost a third. As I said, we are on the cusp of summer 2022, whereby everything is set in respect of seats and sails.

My ask, including of the Government, is for a long-term vision and strategy for 2023 and beyond, whereby we continue to support the aviation sector and our tourism and hospitality industry. It is important that airports and airlines work together collaboratively to regrow and re-establish our connectivity. The fundamental question that I ask the Government is how we will grow our connectivity. A recovery strategy for aviation, tourism and hospitality is needed. It is critical that we work with all stakeholders to have a roadmap for the future in terms of rebuilding connectivity and looking at the challenges we face as we emerge from Covid. Unfortunately, we have the horrific war in Ukraine, which we all condemn, and we stand with the Ukrainian people. That is having an impact on us in terms of inflation, labour shortages and fuel prices.

The airline industry and market have changed substantially. I hope we will look at the aviation sector. Stobart Air has gone. Aer Lingus is operating fewer routes on short-haul flights, which has a profound impact on airports such as Cork, for example. The strong supports given by the Government must be sustained to support our aviation and tourism travel industry. Some 23 cent in every euro of tourism spend is kept in the country. A defined aviation and tourism recovery strategy for 2023 and beyond is needed as we emerge from the biggest crisis we have had, namely Covid, and, unfortunately, now a war, which, again, we all condemn.

I look forward to the Minister of State's reply. I appreciate that this is not his area and I thank him for being here this morning. I thank you, Acting Chairperson, for allowing me to speak.

Joe O'Brien (Dublin Fingal, Green Party)
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I thank Senator Buttimer for his Commencement matter. On behalf of the Minister of State, Deputy Naughton, I welcome the opportunity to discuss this topic with Members of the House.

It is well acknowledged that Covid-19 has had a devastating impact on the aviation industry, not just in Ireland but globally. In 2020, the number of passengers handled in our main airports fell by a staggering 78% on 2019 levels. In 2021, passenger figures across the State were down 76% on 2019. In the interest of public health, certain travel restrictions and public health measures were introduced by the Government. Arrivals into Ireland were subject to a range of health-related requirements which had the effect of restricting passenger traffic. Possibly the most extreme requirement was mandatory hotel quarantine, which for certain travellers was introduced in March of 2021 and ran until September 2021. Legislation permitting its reintroduction was introduced in December 2021, as were additional entry requirements due to the emergence of the Omicron variant. The Government was always clear that such measures would remain in place only as long as absolutely necessary. As of 6 March this year, there are no Covid-related requirements for entering the State.

During the pandemic, two aviation recovery plans were drafted, one by the aviation recovery task force appointed by the Minister and another by the National Civil Aviation Development Forum, a standing body that brings together key aviation stakeholders in the State. While the constantly evolving epidemiological situation made implementing some recommendations challenging, most of the recommendations of the aviation recovery task force were implemented in some way.

The forum plan, published in April 2021, contained recommendations that the forum believed best provided for the restart and recovery of the aviation sector in Ireland. The recommendations spanned policy areas across government and required engagement across several Departments, which was undertaken by the Minister of State, Deputy Naughton. The Minister of State also engaged with forum stakeholders on the steps necessary to ensure operational readiness when international travel resumed at scale. This plan helped pave the way for the Government's decision to reopen non-essential international travel on 19 July last year.

Throughout the pandemic, the aviation sector availed of the considerable suite of economy-wide support measures, particularly the wage subsidy scheme. It is estimated that these horizontal supports totalled more than €360 million by the end of 2021. Additionally, over €160 million in aviation-specific supports was allocated to Irish airports during 2021, including €116 million under a Covid supplementary support scheme. This European Commission-approved state aid put our State airports in funds to allow them greater flexibility to roll out route and other incentives. Without this support, these airports would not have been in a position to incentivise the recovery to the same extent. It is expected that this funding will support the restoration of international connectivity, evidence of which we are beginning to witness.

Summer 2022, as the Senator remarked, is expected to mark the turning point for aviation. A considerable number of new routes have been announced from Dublin and transatlantic services from Shannon recommenced earlier this month. Cork Airport will have eight airlines serving 37 routes, and Shannon Airport will have three airlines serving 25 routes.

There are currently no plans within the Department of Transport to establish a further recovery plan for aviation, having regard to the broadly positive outlook for the short term. However, work on a new national aviation policy with a medium-term perspective is intended to recommence this year, which will take account of the changed environment.

Jerry Buttimer (Fine Gael)
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I thank the Minister of State for his reply. The critical point is, first, that there are no plans and, second, that we have a new national aviation policy being rewritten. The pivotal point from which we should start is that our airline and aviation sector has changed considerably, as I said. We have seen profound change. Tourism is our largest indigenous employer, responsible for over 265,000 jobs. As I said, 23 cent in every euro of spend directly related to tourism returns to the Exchequer. The Government has given strong support to the aviation sector to sustain tourism and aviation during the pandemic.However, we are now in a critical period for Irish aviation and tourism. As an island nation, there is a need for a defined aviation and tourism recovery strategy for 2023 and beyond. As we emerge from Covid, we must face up to the challenges of Ukraine, labour shortages, fuel prices and inflation, along with other challenges. That is why it is critical that we have a dedicated aviation strategy for the future. I look forward to engaging with the Minister of State, Deputy Naughton, and the Minister, Deputy Eamon Ryan. I appreciate the Minister of State, Deputy Joe O'Brien, being here today.

Joe O'Brien (Dublin Fingal, Green Party)
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The latest EUROCONTROL figures show that aviation traffic across the pan-European network is averaging at just over 70% of the equivalent period in 2019. Ireland's traffic levels are reported as slightly higher than this average. Air traffic remains lower than EUROCONTROL's previously estimated recovery forecast, largely due to the emergence of the Omicron variant last year. This would serve to highlight the fragility of the recovery. We remain mindful of the possibility that a variant of concern might again frustrate the restoration of aviation.

Also of concern is the impact of rising fuel costs on air travel. The ongoing crisis in Ukraine clearly has impacts on parts of the aviation industry but, for geographical reasons, the impact on Ireland for now has been limited. The outlook is uncertain with regard to that conflict and there are potential risks for the recovery of aviation in that regard.

With talk of recovery of aviation traffic, the environmental impact of aviation must also be acknowledged. There are several aviation proposals in the Fit for 55 package that aim to ensure aviation becomes more sustainable as it recovers. While there is undoubtedly a need to decarbonise the sector, officials from the Department of Transport continue to engage with the European Commission on the best way forward.

The removal of all remaining travel restrictions has provided much-needed assurance to the industry to enable it to plan with more certainty and provide consumers with more confidence to make future travel plans. The Government has facilitated the jump-starting of the restoration of commercial air services and airports are providing incentives where applicable. Airports and airlines now need time to maximise their recovery.