Written answers

Thursday, 29 September 2011

Department of Transport, Tourism and Sport

Air Services

5:00 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein)
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Question 39: To ask the Minister for Transport, Tourism and Sport the progress made in developing new routes and additional capacity in airports here; the estimated impact this will have on tourist numbers visiting Ireland; and if he will make a statement on the matter. [26495/11]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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As the Deputy will be aware, the market for air services in the EU is fully liberalised so it is a matter for carriers to decide what routes to serve; there is no scope for Government intervention in the market except through public service obligation routes and strict conditions are laid down in EU law for the application of PSOs.

The Deputy will also be aware of recent initiatives by the Government aimed at increasing inbound tourism. In the Jobs initiative in May I announced the proposed suspension of the €3 travel tax as part of a three-pronged strategy aimed at increasing inbound tourism. 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 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.

Following extensive engagement with the two main Irish airlines over a period of months, the response of the airlines to these initiatives in terms of plans to restore routes and capacity was insufficient to merit the Government suspending the tax at this time but we have agreed to review the issue in the Spring. 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.

Some important new routes have been announced in recent weeks which is a credit to the airport authorities involved and also to the efforts of Tourism Ireland. These include Emirates plans for a daily service from Dubai to Dublin from next January. This new link through Emirates' hub in Dubai will provide greater ease of access to Ireland from Australia as well as the emerging tourism markets in the Middle East and Asia. These long-haul markets are particularly important for Irish tourism as tourists from these destinations tend to stay longer and spend more. In addition, Lufthansa's planned new route from Knock to Dusseldorf will be a particular boost for tourism to the Western region as Germany has been identified by Tourism Ireland as a market with considerable scope for further growth in the years ahead.

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