State transport company subsidiary CIÉ Tours International earned €2.7 million profit last year aided by US government cash and travel’s recovery from Covid-19 curbs.
New Jersey, US-based CIÉ Tours International promotes and sells Irish coach tour holidays in North America, a key tourism market.
Figures recently filed with the Oireachtas show that the business earned $2.9 million (€2.7 million) profit in 2022, turning around a $3.7 million loss sustained the previous year.
Revenues multiplied almost eight times in 2022 to $101.4 million from $13.2 million over the same period.
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Irish and US authorities maintained tight travel restrictions in 2021 hitting the Republic’s tourist industry and businesses.
The US did not begin reopening to until late that year while the Republic demanded testing and quarantines for those travelling from North America, deterring potential arrivals.
The accounts show that the Irish State-owned company received $1.7 million in aid from the US government under the Coronavirus Aid, Relief and Economic Security Act, passed by Congress to support business during the pandemic.
The federal government approved and granted the aid to the tour company in March 2021 as a “forgivable loan”, on condition that the business spent the cash according to specific guidelines.
According to the accounts, CIÉ Tours International, the US government fully forgave the debt in January 2022, so the company recognised the sum in its accounts for the year.
The $1.7 million grant given in 2022 was the second such payment received by the company from the US government during the pandemic. It received the first grant in April 2020.
The business also received $52,350 in US government employee retention credit, under the same Covid support legislation. It received $983,272 under this scheme early in 2023, which is consequently not reflected in 2022 accounts.
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The company’s accounts show that operating profit in 2022 was $1.7 million, a turnaround from a loss of $6.7 million the previous year.
The government grant brought pretax profit to $3.4 million last year, according to the accounts, which show that the business lost $5 million before tax in 2021.
During last year, CIÉ Tours International spent $2.8 million on advertising, significantly more than the $1.6 million spent in 2021.
The company buys all tours, accommodation, packages and services from its Irish parent, State-owned public transport group, CIÉ.
The US business spent $50 million with its Irish owner last year, more than 10 times the $4.8 million exchanged in 2021, reflecting the impact of ongoing Government travel curbs on the North American market.
