Financial Support Required by Ireland’s Coach Tourism Sector

Share on facebook
Share on twitter
Share on linkedin

Coach tourism is an integral part of Ireland’s tourism industry. It carries coach passengers across the land, giving employment not just to coach tour operators, but also to hotels, visitor centres, restaurants, bars and other small enterprises. In 2018 coach tourism helped to contribute €400 million to the Irish economy.

The Current Situation

COVID-19 struck the Irish tourist industry at the worst possible time, with the commencement of Lockdown coinciding with the traditional start of the tourist season. The effect was immediate: international pre-booked tours were universally cancelled, and there is little prospect of any trips now happening in the current tourist season. The industry is unlikely to see any tours happening until March 2021 at the earliest.

The impact on the finances of operators has been disastrous. Operators traditionally plan their finances on the basis that they need to cover their coach tour operating costs throughout the winter period until the season commences again in the following Spring. In effect, they hibernate during the winter months and store up funds during the tourist season to enable them to survive the annual downtime until the new season starts again. The timing of COVID-19 means that operators have no reserves left to enable them to survive the crisis until revenue starts to flow again in the 2021 tourist season.

The Cost Incurred by Operators to enable them to remain in business 

Coach operators have reduced their costs where possible. Programmes such as the COVID-19 Wage Subsidy Scheme have helped to defray some financial outlay, but many operators continue to augment staff wages. Other costs have reduced, for instance, fuel prices have fallen to zero, insurance costs have been deferred and some fixed costs (such as loan repayments) have been parked. However, there are underlying costs which are still being incurred by the operators and the impact of these is pushing operators closer and closer to insolvency. In addition, the  effective life of coaches has been reduced by one year because of the crisis, and while some loan repayments have been delayed, the vehicles are still depreciating.






Latest issue
Latest posts
To launch the latest coaches from the Anadolu Isuzu range, EVM Direct Ireland is extending an open invitation to passenger transport operators to join in on…
The Automobile Association (Ireland) is calling upon the Government to introduce free public transport and shared bikes trial across the country for a dedicated…
The 26th edition of the Busworld Europe exhibition will be staged from 7 to 12 October 2023 in Brussels, Belgium. After four years of…
If you didn’t get a chance to join the Tranzaura webinar on 16 February featuring the Driver & Vehicle Standards Authority (DVSA) and Travis Perkins plc, you can…
ADL is preparing its aftermarket in Ireland & the UK for an increase in operator refurbishment requests of both ADL buses and other models…
Leading bus manufacturer Wrightbus was showcasing the capabilities of hydrogen and its part in the UK’s net zero ambitions at a conference last month….
Yutong Bus, a leading global manufacturer of electric buses, led sales of electric buses in Europe last year on the strength of its high-quality…
Limerick native and prominent businessman, Willie Martin of Martin’s Coaches has been elected Chairperson of the Coach Tourism & Transport Council of Ireland (CTTC) following election at the organisation’s…

This website uses cookies in order to improve the site and user experience. By continuing to use it, you agree to our Privacy Policy.