On behalf of the members of the Coach Tourism and Transport Council of Ireland, CTTC, I thank the committee for inviting us to present here today and for providing us with an opportunity to discuss the opportunities that coach tourism provides in enhancing rural tourism in Ireland. By way of introduction, I am the chairperson of the executive council of the CTTC and director of Martin’s Coaches in Limerick. I am joined by my executive council colleagues, James McGinley of John McGinley Travel in Donegal and Philip O’Callaghan of O’Callaghan Coaches in Kerry.
The Coach Tourism and Transport Council of Ireland is the country’s largest representative body for commercial bus operators. We are a proactive organisation focused on working in tandem with Government and State agencies to deliver efficient, sustainable, transport connectivity in Ireland. As a sector, we support more than 11,000 jobs across every constituency and region in Ireland and our activities have sustained businesses that would otherwise have very limited employment opportunities. Yet in the face of rising costs owing to inflation, severe driver shortages and persistent issues with licensing and the recruitment of new, younger drivers, our sector is facing a number of unprecedented challenges. Key to rectifying these issues is meaningful engagement between all transport stakeholders, therefore we are grateful to the committee and its members for the invitation to attend.
Coach and bus tours offer a range of benefits to both domestic and international tourists, including convenience, comfort and safety. They provide a stress-free way to explore the countryside and take in the natural beauty of Ireland. Additionally, they offer an opportunity for visitors to learn about the history, culture and traditions of rural Ireland from knowledgeable and experienced tour guides. Coach tourism brings key economic benefits to every region of Ireland. The coach tourism sector alone contributes in excess of €600 million to the Irish economy on an annual basis with 58% of coach tourists coming from North America, 18% from mainland Europe and 7% from Britain. Moreover, coach tourism offers a sustainable way of travelling, which is becoming increasingly important in the tourism industry and in the wider economy. Coach tourism assists in our overall aim to reduce the environmental impact of tourism by reducing the number of individual cars on our roads. They also provide an opportunity for tourists to experience the Irish way of life by supporting local businesses and communities. However, to realise the full potential of coach and bus tours in enhancing rural tourism in Ireland, we need the support of the Government and State agencies.
Regarding the visitor experience, the Government must prioritise the development of rural transport infrastructure, including roads, bridges and public transport links in order to improve accessibility of rural areas and make them more attractive to tourists. As Ireland's tourism industry continues to grow, it is crucial we focus on improving the visitor experience. Our colleagues in the other tourism bodies have already mentioned the impact of the recruitment crisis in hospitality and the lack of over-night bed capacity. However, regarding coach tourism specifically, inadequate coach parking and facilities at our country's top attractions and in local towns and villages can negatively affect the visitor experience and can leave guides and drivers frustrated. Pre Covid-19, over 2 million tourists were carried by coach operators on an annual basis and therefore it is vitally important we provide adequate space for parking, rest stops and facilities for their comfort. By doing so, we can not only enhance their experience, but also create a positive impression of Ireland as a tourist destination. This investment will not only benefit visitors but also support the growth of local economies as visitors explore surrounding local artisan businesses and attractions.
Regarding the 0% VAT rate in Northern Ireland, since 2012, Fáilte Ireland has identified the difference in treatment of VAT as a pressure point between coach tour operators in Northern Ireland and the Republic of Ireland. This has resulted in an increasing number of operators from the North being used for tours in the Republic, as they enjoy a lower cost base. Consequently, the Exchequer is losing a potentially significant amount of tax revenue that could be allocated to rural tourism marketing, diversification of the tourism product, or improvement of regional transport infrastructure. To achieve tax parity between the two jurisdictions, coach tour operators should receive a 0% VAT rate or an equivalent tax treatment across the island of Ireland.
Regarding international and domestic marketing, the CTTC welcomes recent investment from the Government and commends the efforts of Fáilte Ireland, Tourism Ireland and other stakeholders in promoting Ireland as a holiday destination to both domestic and international markets via PR and advertising campaigns. The CTTC is calling on State agencies to engage with the coach industry to develop coach-specific marketing campaigns to educate tourists on the advantages of using coach travel as a safe, affordable, enjoyable and sustainable means of exploring what our country has to offer. Currently over 30% of visitors use private rental cars to explore the island. Each full coach tour can take up to 30 cars off the road and help to reduce the environmental impact of tourism by reducing the number of individual cars on the country’s roads.
Regarding cruise tourism, since the 1960s, international cruise vessels have been visiting ports in Ireland, including Dublin and Cork. Dublin alone hosted 150 cruise ships in 2018 and more than 160 in 2019. However, this number has declined drastically since the beginning of 2021 due to changes in policy at Dublin Port, with only 80 ships visiting. Due to the lack of opportunities to berth at Dublin Port with only Dún Laoghaire and tender services as an option, international cruise companies will choose not to include Ireland on the itinerary and regional ports will miss out on business. The reduction has had a negative impact on Dublin’s economy and reputation as a leading European destination and has had and will continue to have a corresponding negative impact on the regions due to a substantial decrease in coach tours from the capital and other ports. As previously mentioned, the lack of hotel accommodation means that cruise tourism is a perfect fit for business to benefit from clients visiting Dublin and the regions for day trips. To address this issue, the Government and tourism stakeholders must collaborate on a strategy to maximise the potential of cruise tourism in Ireland, particularly in Dublin. By doing so, rural Ireland can continue to benefit from the economic opportunities presented by growing the cruise tourism industry.
In summary, though our sector faces a number of profound challenges, including inflation and recruitment of drivers, our utmost priority is to continue working in meaningful collaboration with Government to work towards our collective ambition of a reliable, sustainable, well-serviced national transport network. Coach and bus companies offer a sustainable and convenient means of transport for visitors while also supporting local communities and businesses. By investing in infrastructure, providing financial incentives and promoting rural tourism, we can create a thriving industry that benefits everyone. On behalf of the CTTC, I thank the committee again for the invitation to speak. We would be happy to hear any observations or take any questions that members may have.