Industry & Business

Fáilte Ireland Calls For Investment in Hotels Across Key Cities

 Breaking News
  • Fáilte Ireland Crafts a New Path to Success Across Ireland’s Ancient East Fáilte Ireland has unveiled a bespoke toolkit to equip and train craft businesses across Ireland’s Ancient East with the skills to maximise the potential of craft tourism to generate increased revenue and support local jobs. John Paul Phelan TD, Minister of State for Local Government and Electoral Reform, officially launched the Fáilte Ireland toolkit at Kilkenny’s Jerpoint Glass – a [...]...
  • Property Market Grows 8% – Almost Half of Homes Bought With Cash The latest quarterly Consumer Market Monitor (CMM), published by the Marketing Institute of Ireland and UCD Michael Smurfit Graduate Business School, shows slow but steady growth in Ireland’s residential property market, with 55,000 homes purchased in 2018, an increase of just 8% on the previous year. Excluding mortgages from the 2018 figures, there were almost 25,000 [...]...
  • Kerry Group Benefits From Unique Business Model Kerry Group, the global taste, nutrition and consumer foods business, has reported a 3.1% increase in revenue to €6.6 billion for the year ended 31 December 2018, reflecting strong volume growth and contribution from acquisitions, partially offset by adverse currency movements. Business volumes grew by 3.5% and pricing decreased by 0.5% against a backdrop of [...]...
  • 30% Increase in Dublin Industrial Take-up Dublin industrial take up for 2018 totalled 3.3 million sq ft which is a 31% increase on last year. Whilst activity was dominated by smaller deals, take-up totals were boosted by a number of larger-sized deals. There were 14 deals greater than 50,000 sq ft in the last 12 months. The top 5 deals this [...]...
  • Skillnet Ireland Wins Big at Top Digital Awards 2019 Skillnet Ireland, the national agency responsible for the promotion and facilitation of workforce learning, won big at the recent 2019 Digital Media Awards , picking up the award for Best Brand. Other finalists in the ‘Best Brand’ category included Diet Coke, BMW, Thérapie Clinic and 98FM. Established in 2005, the Digital Media Awards are the most [...]...

Fáilte Ireland Calls For Investment in Hotels Across Key Cities

Fáilte Ireland Calls For Investment in Hotels Across Key Cities
December 03
10:08 2018

Fáilte Ireland has highlighted major investment opportunities in hotel stock in key cities. Its latest report on the current and future availability of accommodation shows that there is significant opportunity in Kilkenny for further bed capacity, while Galway also has scope for greater accommodation supply, following strong year-on-year growth in the number of overseas tourists coming to Ireland.

If Ireland’s recent strong performance continues, then overseas tourist numbers will be up more than 20% over the next five years, which will put pressure on current accommodation stock levels, particularly in urban areas which traditionally grow at a faster rate, amplifying any accommodation squeeze.

The Analysis of Tourism Accommodation in Cork, Galway and Kilkenny report commissioned by the national tourism body was carried out by Fitzpatrick Associates Economic Consultants and looks at the current and projected level of bed stock across all accommodation types. The analysis focuses on hotels predominantly, as they constitute the primary source of accommodation in each of the cities, accounting for more than 80% of bed spaces.

The report highlights that the biggest squeeze is in Kilkenny, where 41 new rooms are likely to come on stream by 2022 to add to the current supply, an increase of just 4%, which presents a strong opportunity for investment in this sector.

Galway, which is currently at 82% annual occupancy, also has significant room for investment. With an estimated 17% increase in hotel bed stock over the next five years (500 new hotel rooms), this increase is likely to fall short of expected demand growth.

Looking at Cork, the report shows that there is a steady pipeline of new hotel stock coming on stream for Ireland’s second city. With current figures projecting a 35% increase (over 920 new hotel rooms) in Cork by 2022, this positions the city well to take full advantage of all future growth potential.

Fáilte Ireland’s CEO Paul Kelly said: “This year the Irish tourism industry has once again made another significant increase in its contribution to the Irish economy. We estimate phenomenal growth of 8% in revenue this year, and our economic modelling predicts that tourism will have spurred employment growth of a staggering 20,000 jobs in the year, bringing the total number up to 260,000. This performance is very much reflected in the growing visitor numbers and high occupancy levels we’re seeing in Dublin, Cork, Galway and Kilkenny.

“In 2019 we believe that there is potential to grow by a further 5% in overall tourism revenue, an upward trajectory that is likely to continue in the coming years. The challenge of sustaining this growth in the long-term is to ensure Ireland has an adequate accommodation supply, particularly in these four key cities. While there is a future supply of hotel beds in the pipeline for Cork and Galway, looking at the current and projected levels of visitor demand, there is certainly still a strong case for more investors and businesses to move into the sector and consider each of these cities for investment.

“This is particularly true for Kilkenny, where the current projection of hotel rooms is unlikely to match the growth levels we’re expecting in the market over the next five years. Galway could also benefit from increased capacity as projected growth in the city exceeds the current planned increase in beds. Getting a future view of supply and demand in this way allows us to be ahead of the curve in calling for investment now, and ensuring that cities don’t suffer excessive price inflation down the line. At Fáilte Ireland, our efforts are focused on driving growth into the off-season where there is more capacity and bandwidth to accommodate increasing visitor numbers.”

Overview of report findings by city:

  • Cork:
    • The median projection is for 934 new rooms to open in Cork within the next five years. This represents hotel stock growth of 35%.
    • If robust growth continues, and one or more of the other developments that currently have planning or are in planning come to fruition, then this figure could grow to nearly 1,200
  • Galway:
    • The central projection is for an additional 490 rooms or 17% growth in hotel room stock.
    • This is made up of:
      • a net addition of 56 rooms in 2018
      • 234 rooms across six different hotel projects to be added to Galway’s stock by end-2020
      • at least an additional 200 rooms post 2020
    • The bulk of additional rooms are expected to be in 4-star hotels.
  • Kilkenny:
    • Modest stock growth of 41 rooms or 4% is anticipated for Kilkenny city and its immediate hinterland.

Earlier this year, Fáilte Ireland published An Analysis of Tourism Accommodation in Dublin, which estimated that, from 2018-2020, a net addition to the Dublin stock will be 4,900 (when we also consider hotel closures), including over 3,000 already under construction, representing – by Fáilte Ireland’s estimates – private sector investment in Dublin of €815m.

About Author

admin

admin

Related Articles

New Subscriber

Subscribe Here



Advertisements





















National Manufacturing Conference & Exhibition 2018

NIBRT Springboard Success Stories



Upcoming Events

  • No upcoming events
AEC v1.0.4