Dublin faces visitor accommodation shortage as tourism rises

Dublin is facing a shortage in visitor accommodation options over the next two years, limiting the potential for tourism growth in the longer term, according to a report commissioned by Fáilte Ireland.

The ‘Analysis of Visitor Accommodation in Dublin 2015-20’ found that while additional bedrooms are due to be created for visitors, most will not be available until after 2018 or later. The report also warned that most of the new accommodation stock was not guaranteed and said the capital was facing “a capacity challenge” over the next two years.

Between 2010 and 2015 the number of tourists visiting Dublin rose by 33 per cent while the availability of accommodation fell by 6 per cent, according to Fáilte Ireland.

The independent report, carried out by consultants Fitzpatrick Associates, recommends greater market intelligence in monitoring tourism trends, liaising with the city’s planning officials to bring about greater efficiency, fast-tracking the planning process for hotels and improving transport links to locations outside the city and suburbs.

The report also recommends a review of the maximum allowable heights with a view to increasing the number of storeys on a building.

Minister of State for Tourism Patrick O’Donovan welcomed the analysis and said he would consider the report’s recommendations.

“We must remember that, since seven out of ten visitors to Ireland will stay in Dublin at some stage in their trip, whether it is their sole destination or a gateway to the rest of the country, the issues outlined in this report have a national impact,” said Mr O’Donovan.

“If we are to enjoy sustained growth in tourism nationally, I believe it is incumbent on all tourism stakeholders, where we can, to help create the right environment for the tourism sector to expand and meet the inevitable growth in demand for accommodation which Dublin is facing.”

Mr O’Donovan added that Minister for Transport Shane Ross had approved Fáilte Ireland’s revised hotel regulations which are due to come into force later this year.

He said the changes would allow hotel operators to provide more rooms and operate at a lower cost base, “therefore improving hotel capacity, competitiveness and profitability”.

Fáilte Ireland chairman Michael Cawley warned that Dublin was facing a supply challenge which could “ultimately threaten its competitiveness as a tourism destination”.

Mr Cawley also highlighted some of the causes for the imbalance between supply and demand of accommodation, including sharp falls in hotel occupancy and profitability, a retreat from development lending by the main financial institutions and the risks associated with phases of the development cycle.