I would suggest that your comment regarding "airlines having to readjust schedules due to falling demand" makes my point.
If you increase the cost of something, (especially during a recession) then demand will drop.
If you think that the travel tax makes no difference, than maybe the government should abolish it. Even the Department of Finance seem to agree that it is having an impact on demand, but it is alleging that it will encourage more people to stay at home and holiday in Ireland. This is what they said in June of last year:
"It is worth noting that, by international agreement, fuel used by commercial airlines is completely exempt from tax, so it's a sector that already has considerable preferential treatment," "In relation to the air travel tax's alleged adverse impact on tourism,
it should also be noted that if the tax is discouraging tourists coming to Ireland, then on the reverse side it must be accepted that it is also discouraging Irish people taking holidays abroad,"
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The mind boggles.
