Dublin faces a significant economic setback if the passenger cap at Dublin Airport is not permanently removed before the end of the year, according to a leading representative body for city centre businesses.
Last Wednesday (6th) marked the deadline set by the US Department of Transportation for Ireland to respond to a complaint lodged by a group representing US airlines over the passenger restrictions at Dublin Airport.
The long running controversy centres on the airport’s 32 million passenger cap, which was originally introduced in 2007 as part of planning conditions attached to Terminal 2.
While the cap is currently suspended pending new legislation making its way through the Oireachtas, business leaders say the uncertainty surrounding the issue continues to damage Dublin’s international competitiveness.
Dublin Town, which represents approximately 2,500 businesses in the city centre, has warned that maintaining the cap would seriously undermine Dublin’s future economic growth and reputation as a major European capital.
Dublin Town CEO Richard Guiney (pictured above) said the restriction has already held the city back at a time when tourism and international business are increasingly vital to the local economy.
“Up to one fifth of the spend in Dublin city comes through visitors to the capital,” Guiney said.
“This money is keeping many city centre businesses afloat, but the cap has impaired potential.
“Unlike some European capitals, Dublin is not over-visited and there remains capacity to increase visitor numbers.”
Richard Guiney said removing the cap permanently would send a strong message internationally that Dublin is open for business and prepared to compete with other major European cities for tourism, investment and international events.
He warned that failing to act could have serious long term consequences for the capital.
“Dublin must embrace a position as a leading European city,” he said.
“To do that it must warmly welcome visitors and investors and be truly internationalist and expansive in its collective view.
“The cap of 32 million on the number of passengers that can use Dublin Airport each year has been a barrier to this and must be removed as soon as possible.
“Otherwise the city will pay a very high price.”
The debate around the airport cap has intensified in recent months amid growing pressure from airlines, tourism operators and business groups who argue the restriction is damaging connectivity between Ireland and key international markets, particularly North America.
Supporters of lifting the cap also argue that increased passenger numbers would deliver substantial benefits for hotels, restaurants, retailers and entertainment venues across Dublin, particularly at a time when many city centre businesses continue to face rising operating costs.
However, opponents of removing the cap have raised concerns about noise pollution, traffic congestion and pressure on local infrastructure in communities surrounding the airport.
The Government is expected to continue progressing legislation aimed at formally scrapping the restriction later this year.