Dáil Éireann Debate, Thursday - 17 June 2021
82. Deputy Darren O'Rourke asked the Minister for Transport if he has engaged with travel agents and discussed the need to provide travel agents with continuing business supports with the Tánaiste and Minister for Enterprise, Trade and Employment given the ongoing challenges the sector is facing; and if he will make a statement on the matter. [32457/21]
View answerI have maintained regular contact with key stakeholders throughout the COVID crisis including representatives of the travel trade. Since the impacts of the crisis on international travel became apparent in March last year, particularly on sectors such as aviation and the outbound travel trade, officials from my Department have liaised closely with the Irish Travel Agents Association, which represents about half of the licensed travel agents in the country. My officials have also maintained close contact with travel counsellors and some of the larger tour operators in Ireland during this period. I attended a video conference with the ITAA last summer, and more recently I joined Minister Ryan at a meeting with them in February.
The Government has provided an unprecedented package of supports to businesses during the crisis most of which have been available to the licensed travel agents and tour operators. The sector has availed of some of those central Government supports such as the Employee Wage Subsidy Scheme, which has undoubtedly helped sustain employment in the sector. Travel agents and tour operators have also qualified for the COVID Restrictions Support Scheme (CRSS) or the Small Business Assistance Scheme for COVID (SBASC) which fall under the remit of my colleagues the Minister for Finance and the Minister for Enterprise, Trade and Employment respectively.
In addition, in June 2020 my Department, in close consultation with the Department of Enterprise, Trade and Employment, introduced the Refund Credit Note (RCN) Scheme. This scheme was devised in full consultation between my officals and those representing the Tánaiste's Department, with the industry as represented by the ITAA. The Scheme is in line with the EU Commission recommendations of May 2020 in assisting the liquidity positions of licensed travel agents and tour operators by ensuring that refund vouchers are protected in the event of insolvency. The Scheme has undoubtedly assisted in preserving cash within the sector, To date Notes to the value of €17m have been issued. This is money that otherwise would have had to be paid by the sector to cover customer refunds.
Furthermore, following representations from the travel trade my Department has recently liaised with merchant service providers in the context of their approach to risk profiling and requirements for security from the travel industry. The key concerns of the service providers were addressed with the cooperation of the Commission for Aviation Regulation, the body that licenses Irish travel trade firms and I am assured that the service providers have responded positively to this development.
From the outset of the pandemic I have maintained contact with relevant Government colleagues in respect to the needs of this sector, in particular from a small business perspective about the eligibility criteria for certain COVID related business support schemes. I welcomed the Tánaiste's recent announcement that eligibility for the SBASC would be extended to include travel counsellors, a cohort of travel agents that work from home.
Under the Government's Resilience and Recovery: The Path Ahead Plan, non-essential international travel will be possible from 19 July. This plan is built around the EU Digital COVID Certificates and other proofs of vaccination, pre-departure PCR testing and mandatory quarantine that will allow international travel to operate safely while an “emergency brake” mechanism will also allow us to respond to the potential emergence of variants of concern.
Whilst there will be a certain level of pent-up demand, it is recognised that it may take some time for consumer confidence to return and for the sector to see a meaningful return to trade.
On 1 June, Government launched its Economic Recovery Plan 2021 with the goal of achieving rapid job creation and economic growth after the pandemic. This plan sets out new measures for businesses and affected sectors as the economy reopens, and details for continuing existing emergency pandemic financial supports including the COVID Restrictions Support Scheme (CRSS), the Employment Wage Subsidy Scheme (EWSS) and Pandemic Unemployment Payment (PUP), giving certainty to employers and employees. Importantly, this plan also recognises that additional support may be required for the recovery of certain sectors such as aviation and travel trade. As the travel trade is part of the wider aviation and travel ecosystem, the needs of this particular sector will continue to be considered and I and my Department will maintain contact with the industry in the weeks ahead, as we get more clarity on the trajectory of the recovery of the economy which is, of course, now finding its feet again as we start to reopen for business.
