Written answers

Wednesday, 24 February 2021

Department of Transport, Tourism and Sport

Covid-19 Pandemic Supports

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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78. To ask the Minister for Transport, Tourism and Sport if a specific business support scheme will be put in place for travel agents (details supplied); and if he will make a statement on the matter. [9920/21]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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94. To ask the Minister for Transport, Tourism and Sport his views on whether sector-specific tailored supports are needed for the travel agency sector; the supports he will put in place to support jobs in the sector; and if he will make a statement on the matter. [9519/21]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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I propose to take Questions Nos. 78 and 94 together.

I am fully aware of the plight of travel agents and tour operators due to the significant impact of the pandemic on international travel. I understand the cash flow pressure that they are under, the unique implications of the refund requirements placed by the Package Travel Directive and the difficulties they have had with the airlines in securing refunds.

As a largely SME sector, travels agents and tour operators have access to the various business supports made available in last year's July stimulus package and in Budget 2021, which contains historic levels of State support in the form of wage supplements, financial grants and waived commercial rates.

The State is also providing a special financial guarantee under a Refund Credit Note scheme for the sector, which makes the credit notes that licensed travel agent and tour operators issue to their customers a very secure proposition. Credits notes to the value of €19 million have already been issued to consumers under the scheme – under which their value is guaranteed by the State - and this is money that the industry would otherwise have had to pay back in cash refunds. I know this does not come close to replacing lost business, but it is significant nonetheless.

It has been brought to my attention that some travel agents and tour operators have been experiencing difficulties accessing the COVID-19 Restrictions Support Scheme (CRSS), whereby some in the sector have qualified for CRSS because they have physical shop fronts, whilst others have not, typically because they operate wholly through online channels. The Government has responded with the announcement of the new Covid-19 Business Aid Scheme, which will narrow the number of businesses that are not receiving some form of fixed cost support payment, but sadly cannot help everyone.

The Government has been particularly focused on dealing with the public health challenges arising from the behaviour of the virus since late December, but our attention is also on the impact on businesses and on people’s lives too. Given the depth of the impact of COVID, the Government approach to date is to focus on supports that cover as many sectors and businesses as possible. Over the coming months or so, I expect that more focus will be brought to how we continue to support jobs and businesses in the event that restrictions – including on international travel – will remain in place longer than any of us want them to. In that context, Minister Ryan and I recently met with the Irish Travel Agents Association, where the sector made the case for continued financial support. The proposals made by the ITAA are being examined.

The Government remains fully committed to doing everything possible to support all those affected by this terrible virus, including continuing to help businesses survive until such times as they can being to trade again.

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