The Minister for Tourism has said there is no legal mechanism outside of the planning process to enable the passenger cap at Dublin Airport to be lifted.
Catherine Martin said her Government colleagues, Minister for Transport Eamon Ryan and Minister of State James Lawless, cannot see a legal mechanism to resolve the issue.
Minister Martin said it is a planning issue and it is not for politicians to interfere with that process.
Speaking to RTÉ News at the Irish Tourism Industry Conference in Dublin, the minister said she is obviously cognisant of how important connectivity is for Ireland as an island and the tourism industry here.
But she said while there are constraints at Dublin Airport, there are not the same constraints in Shannon or Cork.
“Research is pointing to about 38% of visitors when they come to Dublin, land in Dublin, they go west,” she said.
“So I think there is an opportunity here that could be a win-win for regional tourism.”
The minister said more than 70% of the more than 250,000 people employed in tourism are in the regions.
“So we need to look at really marketing and assisting Shannon and Cork to be seen as destinations,” she added.
The minister said she is also cognisant of the challenges facing the tourism industry and so it is her absolute priority to secure funding in the Budget for supports for the agencies that can support the sector.
She said this could be in the form of increased marketing, product development, resilience, recruitment and digitalisation.
She said a decision on the call for a 9% VAT rate for the hospitality sector is one for the Minister for Finance and while hospitality does not fall under her remit it is a very important part of the tourism ecosystem.
“We did that as a temporary measure during Covid at a cost of €1.2 billion and this is something that the cost to bring it to hospitality, is something that the minister is looking at,” Ms Martin said.
“Of course it is being discussed at Government, but ultimately it is a matter for the Minister for Finance [Jack Chambers].”
Tourism activity still 6% below pre-Covid levels – ITIC
Activity in the tourism industry still remains 6% below its pre-Covid levels, two years on from the start of the easing of the pandemic, according to the Irish Tourism Industry Confederation (ITIC).
It said that while business levels remain subdued, costs have been soaring and claimed the sector needs assistance from the Government in Tuesday’s budget.
“Budget 2025 is very important to the tourism industry and the easiest, most effective and sector-specific way Government can support the industry is a restoration of the 9% VAT rate,” said Eoghan O’Mara Walsh, CEO of ITIC.
Mr O’Mara Walsh added that increased investment is required and that spending reverses in last year’s budget “must be rectified.”
Tourism providers and industry agencies have claimed that the year to date has been challenging for the sector.
Arrivals from the UK are down 12% while recent Fáilte Ireland research has indicated that nearly two thirds of operators expect profitability to be lower this year.
Labour policy changes are also estimated to have added €1.4 billion to the payroll of tourism and hospitality businesses between now and 2026.
The industry is also growing increasingly concerned about the implications of the passenger cap at Dublin Airport.
“We don’t yet know the implications of the passenger cap at Dublin Airport,” said Catherine Flanagan, CEO of the Association of Visitor Experiences and Attractions.
“It is very concerning when we hear that airlines requesting slots for next year are being declined.”
