Carbon tax 'could harm tourism'

THE INTRODUCTION of a carbon tax could have a negative impact on the tourism industry, Fáilte Ireland has warned.

In a report on climate change from the tourism development agency to be launched next week, reference is made to the inclusion in the programme for government of the consideration of a national carbon tax.

“While these measures are aimed at addressing the sources of climate change, there is a risk of unintended negative consequences for the tourism industry depending on how they are implemented,” the report says.

“As an island destination largely dependent upon air access, it is important that the introduction of carbon taxes does not give rise to any significant economic displacement effects that would unduly penalise the tourism industry.”

Minister for Finance Brian Lenihan said last October that the Government was committed to introducing a carbon levy, on a revenue-neutral basis, during its lifetime.

Mr Lenihan said the report of Commission on Taxation would “assist the Government in assessing how such a levy might best be structured and implemented in a fair and consistent manner”.

Fáilte Ireland’s report, Facing the Challenges of Climate Change: Fáilte Ireland’s Carbon Strategy, also highlights other factors with “serious implications” for Irish tourism including energy and transport costs.

A new “green tourism” section on Fáilte Ireland’s consumerwebsite, www.discoverireland.ie, will allow consumers to identify and choose businesses with proven environmental credentials.

Mary Stack of Fáilte Ireland’s environment and planning unit said adopting an environmental approach to tourism was not only an ethical choice but also a business necessity.