Michael Lowry (Tipperary, Independent) | Oireachtas source

Although there is a major focus on travel, a sector of the industry is facing extinction unless they receive urgent funding. Ireland's 190 licensed travel agents are currently watching their businesses fail and, unlike other SMEs, they have received little or no assistance. I have been in correspondence with the Tánaiste about this issue. Industry projections estimate that as a result of the advice not to travel abroad, travel agents will lose €120 billion in projected earned income, which comes largely from commissions and service fees. Without the benefit of the temporary wage subsidy scheme, TWSS, many travel agents would already have closed their doors as turnover is down by 90%. All income earned to date from advanced bookings is handed back in refunds, resulting in negative trading. Advanced bookings are practically at zero so businesses are looking down a black hole toward the rest of 2020 and the first quarter of 2021. Travel agents earn income when consumers pay the balances. Unlike the domestic tourism industry, they cannot benefit from staycations to any great extent. Outbound travel agents have no fallback. However, outbound and inbound tourism rely on each other to generate passengers for airlines to justify operations. Multinationals and SMEs depend on travel agents to properly manage their costs. Outbound travel agents also sell European holidays in the UK market and bring meetings, conferences, sports groups and a host of other visitors into Ireland.

Travel agents are not arguing against Government advices but they are concerned about the unintended consequences that are putting them in jeopardy. Greater assistance is urgently required. Travel agents were excluded from applying for the online retail scheme in the first round of grants as they were considered to be providing a leisure service. Travel agents should not be excluded from the upcoming round of financial supports for SMEs or from applying for certain grants that may evolve due to a misconception about the volume and type of business they provide.

In summary, the Government advice is not to travel. Thousands of people have followed that advice by cancelling holidays. Most of these cancellations are package holidays that include flights, transfers and accommodation. We have a ludicrous situation where under a EU directive the travel agent is legally responsible for the refund of the entire package. This is simply not sustainable financially. It is a travesty and incredibly unfair to expect travel agents to shoulder the burden of this financial outlay. It will force them into liquidation. Ironically, the travel agent bonding system to protect consumers when agencies collapse only becomes active and effective after a travel agency goes into liquidation. Travel agents, and thousands of consumers across Ireland are stranded between a EU directive and Government travel advice. This matter requires urgent attention and correction.

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