Dublin beats rest of Europe

ECONOMIC growth in Dublin exceeded that of any other major Western European city in 1996, according to a new report from the Dublin Chamber of Commerce.

The city is set to be Western Europe's fastest growing city economy until the end of the century, according to the report, Dublin and Its Economy; a Review of 1996.

While welcoming current developments on transport infrastructure, the report expresses concern about Dublin's transport difficulties and progress towards finding a solution.

The chamber believes additional information on traffic projections is needed to demonstrate that the light rail system, LUAS, is a better solution to the city's transport problems than quality buses.

The report contains details of a study carried out by ERECO, a grouping of leading economic research institutes, which forecasted growth for 39 major cities up to the year 2000.

The forecasts are for value added per capita. In the wider survey, Dublin's growth rate is exceeded only by the former East German cities of Leipzig and Dresden.

In the past four years' surveys Dublin has been in the top three high-performing city economies.

Some 400,000 people now work in the city, mostly in services, with business and financial services accounting for almost half of total jobs.

New services in areas such as software, tourism, call centres and the culture industry are among the most rapidly-expanding areas.

The International Financial Services Centre is identified as a positive feature in Dublin's overall growth.

The closures of Packard Electric and Semperit were offset by announcements of new overseas projects, including those by IBM, 3COM, and telemarketing and technical support services.

Women now account for 40 per cent of Dublin's labour force, an increase of 5 per cent since 1985. For the rest of the country the figure for women at work is 34 per cent.

More than 25,000 jobs in Dublin are dependent on the tourism industry, according to the report. More than two-and-a-half million foreign tourists visited Dublin during the year.

These visitors spent an estimated £500 million. One-quarter of this was on accommodation, with £90 million being spent in shops and £150 million in pubs and restaurants.

"There are now approximately 25 hotels either under construction or in the planning stage, with a planned capacity of 3,051 guest rooms," according to the report.

The report cites transport difficulties as the most critical aspect of the city's economy.

The chamber calls for improved access between Dublin Airport and the city, and between the airport and the rest of Ireland.

"The chamber favours a fast-rail link between the city centre and the airport, with a connection to the Belfast-Dublin railway."

Passenger traffic through Dublin Airport approached the maximum capacity of nine million passengers during 1996.

Further study is needed before deciding on a light rail system for the city, according to the report.

"An LRT system which is surface-based in the suburbs but underground in the city centre could well be part of an optimum solution. It would still involve considerable disruption the centre during construction, although this could be significantly less than that during construction of a surface-based system.

"Significantly, it might go much further in terms of achieving the desired result of relieving congestion in the city centre."

Putting part of the LRT system underground, the chamber suggests, could be more beneficial in the long-term.

Retail property in Dublin experienced a boom in 1996 that was unparalleled in recent years, according to the report.

"The two major phenomena in the retail market in 1996 were the rapid expansion of new shopping centres, both in, the city centre and suburbs, and the invasion of the British multiple retailers."

Prime retail streets are commanding strong rents. On, Grafton Street rents of up to £165/£170 per square foot are being paid, while on Henry Street the equivalent rate is £140.

A combination of diminishing supply and increased demand has driven office rent levels to approximately £17 to £18 per foot for prime, new, centrally located accommodation.