Ireland has introduced a €10 (£7) air travel tax in its 2009 budget. Business groups have labelled the move a damaging one, claiming the tax will hurt the country's competiveness when it comes to the travel and tourism sector, which is already facing turbulent times. According to Reuters, the move was announced by finance minister Brian Lenihan as part of the 2009 budget on Tuesday. As Ireland faces its first recession in a quarter of a century, Lenihan has predicted that the tax will yield $95m in state revenues next year and €150m in a full year. Chief executive of the Irish Tourist Industry Eamonn McKeon said: 'It would be regrettable even in normal times, but its imposition at a time when the aviation and travel industries are in the most precarious position in living memory is unfortunate and unwise.'