The 2nd European Bus and Coach Forum

THE ROLE OF THE COACH IN THE ECONOMY

Conclusions by

GRAHAM SMITH

Ladies and Gentlemen,

The 2nd European Bus and Coach Forum takes place in a world transformed by the tragic events of September 11th, their aftermath and an uncertain future.

The major direct impact has been on the airline industry, which has been faced with a reduced demand for air transport especially for high revenue business travel. It has also seen the introduction of new costly insurance contracts and security measures.

But tourism has also been hit hard, with coach tourism taking its share in the business downturn due to high rates of cancellations. Now running at 30-40 % by Japanese and American groups.

It is now time for everyone in the tourist industry to come together to restore confidence in travelling and confidence in Europe as a destination. Coach Tourism has a lot to gain through such action.

Today, Dick Tensen (NEA) has confirmed that Coach Tourism is an important factor in the economy. It not only brings passengers to many different destinations but also generates revenues for other businesses. Coach tourists spend 40% more than the individual traveller.

It is also a substantial employer not only fuelling direct jobs, but also contributing to job creation in sectors indirectly linked to coach tourism. The hotel and restaurant sector, the leisure industry and vehicle manufacturing, to name just a few.

However, the importance of coach tourism is not widely recognised.

We have heard today that the European Commission's Transport Policy White Paper almost totally ignored coach tourism and its ability to help satisfy increased demand for collective passenger transport. To say the least, this is disappointing.

José-Maria Huch Sala of Autocares Julia and Stephen Barber of Wallace Arnold have shown us here today once again how flexible and inventive the coach industry can be.

It is clear that through exploration of new markets and moving into co-operation with other modes of transport, new ways can be found to respond positively to the changing customer preferences while still providing a high quality product. A point confirmed from the floor.

But the traditional customer should not be overlooked. He forms a solid foundation for the industry's success, the platform from which to venture into new markets. Growth is still possible!

They have also confirmed the efforts, which the industry has undertaken to improve passenger and vehicle safety despite limitations laid down by designers!

Our industry must remain dynamic and creative in order to face the challenges of the future. Already set out in Luc Glorieux's book two years ago, this has been confirmed again today.

These will not be easy challenges to face. Some of our partners here today have indicated that. Patrick Richards of Gulliver Travel Associates explained that Europe is "out-pricing" itself and that many tourists are starting to prefer other, cheaper destinations.

Some Travel Agents and Tour Operators will try to come down harder on the coach industry when it comes to contract negotiations.

Business is business but needs to be negotiated and contracted within fair and sustainable limits. And of course in the framework of current drivers' hour's regulations.

When authorities determine the rules governing our sector, it is essential that the industry's operating practices be taken into account.

While ensuring that the utmost is being achieved as far as safety and comfort is concerned, operators should be able to continue to work in a flexible manner without having to increase costs needlessly.

The industry is greatly concerned by the Commission's attempts to introduce stricter driving and resting time rules which will undoubtedly impact negatively on flexibility and costs.

This will come on top of extra costs and less flexibility, which will be caused by working time rules, to be introduced for mobile workers.

When it comes to co-operation and competition with other modes, it is evident that air transport enjoys a considerable tax holiday for VAT on turnover. And to excise duties on fuel, the latter also being enjoyed by the railways.

José-Maria Huch Sala has made reference to a long-standing IRU demand to end distortion of competition in the field of VAT, and work towards rate harmonisation for all modes of transport. Unfortunately we have heard from the Commissioner that this goal is a long way off. In addition, an easy system for declaring and reclaiming VAT should be introduced in order to reduce the bureaucratic burden on the entire transport industry.

When it comes to excise duties on fuel. The authorities should not forget that the coach tourism sector suffered as much as road freight transport from the excessive price increases of September 2000. Therefore the Commission's intention to look into the introduction of a professional diesel is being followed with great interest.

More is needed to improve the sector's competitive edge. Cabotage in the framework of international regular services is still highly restrictive. The European Commission should continue to extend the freedom to provided services in this field.

A healthy coach industry will not only be beneficial for the operators but also for customers and our partners.

Patrick Maes of Sofitel has confirmed the importance of coach tourism for the hotel sector but has also mentioned the problems in dropping off and picking up passengers. I will come back to this later.

Also Barry Thigpen has confirmed the crucial importance of coach tourism for his company Six Flags Europe, the top player in the regional leisure park industry, and the efforts undertaken to motivate guests to visit the parks by coach.

But there are also those who don't appreciate coach travel. Patrick Richards alluded to people who refuse to use it as a mode of transport.

We heard today that a growing number of European cities have already undertaken or are planning to undertake unilateral measures to restrict coach access from their centres.

This is negative not only for the coach operators and drivers but also for tourists who rely on coaches, and for the many partners of coach tourism.

Passengers are unhappy because they are not being provided with a true door-to-door service, contrary to what they expected.

Fortunately, not all City Councils are as closed minded as those of Paris and Rome. Frau Smeets, Mayor of Düsseldorf has clearly proven that it pays to provide a well-organised plan for coach access, with good parking facilities in central locations, and to involve the coach industry in its development.

It is important to make available clear information to drivers so that they know where to go in advance. A smooth journey means a satisfied customer and a satisfied customer will come back.

Jean-Pierre Drubbel, Director of the Tourism Board of Bruges has shown us the difficulties that historic towns face with touring coaches. His beloved Bruges has a medieval town centre and very narrow streets, which are practically inaccessible for large touring coaches.

Notwithstanding, 19% of the visitors come to Bruges by coach and there is certainly room for more. For a city like Bruges, the challenge is of course difficult. But it can be seen that here, steps have been taken to accommodate coaches.

Frau Smeets and Mr Drubbel's interventions have stressed that adequate parking infrastructure with facilities for drivers, accompanied with good information, are a must. Even in restricted areas, access should be allowed under limited conditions for the picking up or setting down of passengers.

A positive dialogue between municipal decision-makers and the industry should provide solutions acceptable to both. And will greatly benefit the local economy.
Coach tourists are spenders! And we shouldn't forget that for many, the only viable alternative to the coach is the motorcar, with all that implies for urban congestion.

May I emphasise again that the economy of many tourist cities largely depends on coach tourism. Municipal authorities must understand this!
Restrictions on coach tourism can only do damage to their local economy.

This consideration fully justifies the policy long advocated by the IRU and its partners - travel agents, tour operators, and hoteliers - to facilitate and promote coach tourism rather than restrict it!

Allow me to conclude with a reference to the IRU's "three "i" approach to sustainable development: innovation, incentives and infrastructure".

Coach tourism is an important factor in the economy and can respond to changing demand. And thanks to its modern approach it will play an essential part in satisfying increasing demand for collective transport.

It provides a solution for sustainable mobility and economic growth. And should be recognised as such by European, National and Local Authorities.

The necessary incentives should be provided to encourage the coach to continue fulfilling this role.

Flexible operating conditions. A level playing field in taxation. Good infrastructure including parking facilities - to name only a few - is vital for the success of our industry. And will help motivate companies to continue their innovative approach.

As a final word, I would like to thank the speakers and our moderator Tom Jenkins for their very valuable contributions as well as the team of the IRU Secretariat General who have helped to make this 2nd European Bus and Coach Forum a success.

And many thanks to you the audience for your active contributions during the debates.

It now gives me great pleasure to invite you all to join us for a buffet lunch.

Thank you very much.

GRAHAM SMITH
President of the Group "Coach Tourism" of Section I 'Professional Passenger Transport",
International Road Transport Union (IRU)

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