The Minister for Tourism, Catherine Martin, has stated that there is no legal mechanism outside the planning process to lift the passenger cap currently imposed at Dublin Airport. Speaking at the Irish Tourism Industry Conference in Dublin, she emphasized that this issue falls within the realm of planning and should not involve political interference.
Minister Martin addressed the significance of connectivity for Ireland, particularly as an island nation reliant on tourism. Despite the constraints at Dublin Airport, she noted that other airports, such as Shannon and Cork, do not face the same limitations. “Research indicates that about 38% of visitors landing in Dublin head west,” she explained. “This presents an opportunity that could benefit regional tourism.”
With over 70% of the 250,000 people employed in the tourism sector based in regional areas, Minister Martin highlighted the need for enhanced marketing efforts to promote Shannon and Cork as viable travel destinations. She acknowledged the challenges faced by the tourism industry and reiterated her commitment to securing funding in the upcoming Budget to support various initiatives, including increased marketing, product development, and digitalization.
Regarding the call for a 9% VAT rate for the hospitality sector, the minister noted that such decisions fall under the purview of the Minister for Finance. She mentioned that while this was a temporary measure during the COVID-19 pandemic, its implications are still under discussion among government officials. “The cost of this measure during COVID was approximately €1.2 billion, and it’s an issue that the Minister for Finance, Jack Chambers, is currently evaluating,” she said.
The Irish Tourism Industry Confederation (ITIC) reported that tourism activity remains 6% below pre-COVID levels, two years after restrictions began to ease. Eoghan O’Mara Walsh, CEO of ITIC, emphasized the urgency of Budget 2025 for the tourism sector, advocating for the restoration of the 9% VAT rate as the most effective means of support. He stressed the need for increased investment and rectification of budget spending cuts from the previous year.
Challenges continue to mount for the tourism industry, with a 12% decrease in arrivals from the UK and a troubling outlook for profitability, as nearly two-thirds of operators expect lower earnings this year. Catherine Flanagan, CEO of the Association of Visitor Experiences and Attractions, voiced concerns about the impact of the passenger cap, noting that airlines requesting slots for next year have faced declines.
As the tourism sector grapples with these ongoing challenges, Minister Martin’s commitment to regional tourism development and support for the industry remains a priority.
