Sir, - With reference to your Editorial on tourism (November 9th), I believe that aviation is central to the very difficult situation that we find our economy in.
When aviation suffers, tourism suffers. Tourism is one of our most important industries, employing 150,000 people. It is one of the primary engines for delivering the fruits of increased prosperity to all regions of the country.
The financial benefits are enormous. It is estimated that every £1 million spent by overseas tourists sustains 51 jobs in the Irish economy. A loss of a million tourists next year could cost the Irish economy more than 20,000 jobs.
But this doesn't have to happen. If we take the right action quickly we can do a great deal to help our tourism industry to weather the current storm.
Aviation policy is the key. The first thing we have to do is to keep Aer Lingus in the air. The second is to develop a coherent national aviation policy.
I do not see any long-term future for Aer Lingus if it remains in public ownership. The commercial realities are simple. State-aid rules mean that, as a State company, Aer Lingus would have no source of capital. It would be dependent on borrowings and internal cash flow to fund expansion.
Without access to fresh capital Aer Lingus would be at the mercy of its competitors, almost all of whom are now publicly quoted companies with direct access to the capital markets.
We should remember that it is not so long since Ryanair was struggling for survival under huge losses. Look at it now: in terms of market capitalisation it is the second largest airline in Europe after Luftansa.
The challenge for the tourism industry is to promote Ireland as a clean, friendly destination that offers value for money. The key to achieving this is through the growth of low-cost airlines into and out of airports in Cork, Shannon and Dublin.
Ryanair has already shown what can be done with the new routes it has opened between Ireland and continental Europe in recent years. On the Ryanair website, for instance, you can book return trips from Frankfurt to Shannon for £67, from Brussels to Dublin for £41, and from Paris to Dublin for just £36.50. Fares like that are better than any promotional campaign for Irish tourism.
We need to ensure that this low-cost business grows and that we lessen our dependence on the United States for business. The events of September 11th have shown us that we should not be over-reliant on one market and that growth in the tourism sector should focus on the European market.
It would be a great pity for Irish aviation if Aer Lingus was to cut its route network even more. If Aer Rianta was to keep the door shut on deals with the low-cost carriers that would be a pity for Irish aviation too. But if the two things were to happen together it would be a disaster not just for Irish aviation but for Irish tourism, Irish employment and the Irish economy. - Yours, etc.,
Senator Mβirin Quill, (Progressive Democrats), Wellington Road, Cork.