Cork businesses planning to resume air travel
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A third of businesses in Cork expect to return to air travel for business purposes in the first quarter of next year as the region continues to emerge from Covid-19 lockdowns and restrictions.
The latest Economic Trends Survey from Cork Chamber found continued support for a full return to air travel by the end of 2022. While construction work is ongoing on the redevelopment of Cork Airport's runway, the survey found that more than one-fifth of businesses have resumed some form of air travel in the third quarter of this year with significant uptake of 32% expected in the first three months of next year.
According to the survey, the Cork to Heathrow route remains the most critical for businesses in the region followed by Amsterdam and then Frankfurt. While many Cork businesses expect to resume some form of air travel, most expect air travel levels to remain below 2019 levels for next year, with 64% of businesses expecting overall levels of air travel to remain under 40% of 2019 levels.
When asked what level of rail travel for business is anticipated in 2022, 64% of respondents also expect levels of rail travel to be under 40% of 2019 levels. 85% of respondents support a Dublin to Cork train earlier than 7am to facilitate stops en route and commuter travel to work. Additional member commentary called for a reinstatement of a 6.15am train and also express trains from Dublin to Cork.
"While expected to be lower than 2019 levels, we anticipate this perspective will evolve over time as confidence in international travel grows," Cork Chamber President Paula Cogan said.
"In the Economic Trends survey businesses reiterated the value of connectivity to Cork and the top three critical routes for business - London, Amsterdam, and Frankfurt respectively. The Budget 2022 provision for an additional €90m to aviation to help restore vital connectivity is welcome.
"In addition, the current works and investment underway at Cork Airport will bolster the airport’s capacity to support increasing demand and passenger numbers beyond 2021. It is clear however that the route for aviation will require multiannual support to get back to pre-pandemic levels.’’
The Economic Trends Survey, supported by permanent tsb, also found overall business confidence levels to remain quite high with 91% of respondents reporting business confidence, this is a 1% increase on the previous quarter. It is a significant increase, in comparison to the 68% confidence level expressed by businesses a year ago.
More than half of businesses (56%) expect to increase employee numbers over the next 12 months. 61% of businesses have open job vacancies yet 42% are reporting difficulty in filling open roles.
Mags Brennan, Head of Business Banking at permanent tsb said it is very encouraging to see the boost in confidence as the economy enters the last quarter of 2021. "Notwithstanding the current optimism, it has been a challenging year for many, while there is much common ground and shared experience, no two businesses have had the same unique challenges," she said.
President of Cork Chamber, Paula Cogan concluded, ‘’We are well placed to close out the end of the year with positivity while not underestimating current challenges of rising cost of business with inflation in materials, energy, and labour apparent, and a shortage of skills. Cost competitiveness and skills availability are among the top three threats."