Mr. Paul Hackett:

The travel industry directly employs approximately 3,500 people across the Twenty-six Counties. This is a mainly Irish-owned SME business sector, with many high street shops in rural and regional towns, as well as concentrations in the larger cities. The industry is regulated by the Commission for Aviation Regulation, CAR, offering additional financial and consumer protection for those booking travel services via a travel agent. Turnover across the sector was approximately €1.4 billion per annum, and the ITAA is the representative body for the industry. Travel agents serve both the corporate and leisure markets with the full range of outbound travel services.

The ITAA is deeply concerned about the impact the Covid-19 crisis is having on the wider travel sector and Irish travel agents. The travel industry is unique because of the following factors. First, trading is down 90% to 95% since March and will continue at that level of trading for the foreseeable future because of the messaging on non-essential travel. Second, travel companies have had to remain open to service customers with cancellations, refunds and rebooking. The companies could not close, even though they were effectively blocked from trading, and they have had to continue to carry a proportion of salary and all overhead costs. Third, travel agents have had to engage in negative trading due to the refund requirement on business that was secured in 2019 and early 2020. Fourth, the industry expectation was a resumption after six months but we currently have no reopening date. We require a compensation package to partially cover running costs, and we need infrastructure to be put in place to allow international travel to recommence that complies with health guidelines and keeps passengers safe. Fifth, travel agents are the only industry sector in Ireland that is both regulated, through our licence, and bonded for consumer protection.

The ITAA welcomed the publication of the aviation recovery task force report in July and the recommendations within. However, although the association had anticipated the interim recommendations of the task force would be implemented by the Government following their publication on 22 June, this has not been done. We need Government adoption of the EU traffic light system and we need Ireland to follow the rest of the EU with the implementation of that system. The task force emphasises the urgency of a plan “to economically co-exist with the virus and, as an island nation, this has to include international travel.” The ITAA reiterates the urgency of this and the need to follow fellow member states with a safety-conscious reopening of international travel.

While much ITAA business relates to outbound travel, the nature of the aviation sector means that the outbound and inbound sectors are inherently linked. The ITAA supports the promotion of aviation and regional airports to save Ireland's tourism sector and, by extension, its economy. Travel agents, as the vital element in outbound travel, will do our utmost to contribute to promoting foreign travel, and our role in promoting outbound travel complements the efforts of others to promote inward travel.

Regarding the proposed EU traffic light system, the ITAA welcomes that the Government has committed to EU-wide rules for such a system aimed at opening our skies. Most EU airports are operating safely with additional structural supports, and the ITAA is of the opinion that the Irish airports should be permitted to follow suit with our neighbouring EU airports.

As for Covid testing, the safety and comfort of our customers are paramount to all member agents. We have called for the development and implementation of routine Covid-19 testing for passengers boarding flights out of the country as this will ensure a "clean" environment throughout the travel process. Evidence has shown that this significantly reduces the spread of the illness. The ITAA believes that this testing will help rebuild consumer confidence in travel. The DAA can roll out testing within days in Dublin and Cork airports, delivering 15,000 screenings daily. This will need State assistance.

I thank the committee for its interest. We would welcome any questions.