Tourist tax halts Ryanair growth

Date: 26th June 2009

Ryanair boss Michael O'Leary has said that the collapse in UK air travel is due to the government's £10-a-time tourist tax.

The outspoken airline owner announced that his airline would be implementing a "freeze on growth", with no flights added to the schedule this summer.

The freeze would apply to all nine of the airports from which Ryanair flies.

Mr O'Leary insisted that the airline would not be held back by the tax and suggested it would continue to grow by 15 per cent a year by concentrating on expansion abroad.

He said: "Tourism responds quickly to price changes and while the UK keeps taxing tourists Ryanair will switch its growth to other EU countries where low cost airports are growing and where governments are welcoming tourists not taxing them."

Labour's £10 air tourist tax is reported to be worth approximately £2 billon a year.