Soaring fuel prices ‘hurting tourism’

BUS and coach firms have claimed rising fuel prices are having a detrimental effect on tourism in Ireland.

The representative body of the coach transport industry claims its members cannot sustain buying diesel an average of around €1.45 per litre.

The Coach Tourism and Transport Council warned more jobs would be lost in the sector if the Government doesn’t take measures to lower fuel prices.

CTTC chief executive Gerry Mullins said the industry had already diminished by more than half since 2006 — a period during which the price of diesel has risen by 50%.

“There is a simple and very direct relationship between the price of diesel and our ability to compete for international visitors,” said Mr Mullins.

The CTTC pointed out that 74 cent of every litre sold is revenue for the Government in the form of excise duty, VAT and the national oil reserves levy.

It has called on the Government to tackle soaring fuel prices by having a re-think on taxes.

Mr Mullins said bus and coach firms in the Republic had to compete with rivals from Northern Ireland and Britain who are able to reclaim VAT on diesel.

The CTTC has urged Transport Minister Leo Varadkar to introduce a new form of excise duty rebate since the previous one was abolished in 2006.

It claimed the number of coach-touring visitors to Ireland decreased by 21% or 133,000 to 507,000 that year.

By 2009 — the latest year for which figures are available — the number of overseas visitors taking coach tours in Ireland fell to 293,000.

The CCTC claims the decrease represents a loss of €347m in revenue.

The Irish Road Haulage Association and the AA have also demanded measures to alleviate the cost of transport for hauliers and ordinary motorists to address the rising cost of petrol and diesel.