Rooms Requirement ‘Abundantly Clear’ says Kelly

"It is is abundantly clear that we still require more hotel rooms to meet the city’s diverse needs for short-term accommodation," Paul Kelly, CEO of Failte Ireland, told an Oireachtas Commmittee.

"Hotel occupancy in Dublin is now one of the highest in Europe, driven by a range of factors, some of them short-term," he said. "These include deferred business conferences, group tours, concerts, weddings, accommodating asylum seekers and displaced Ukrainian citizens, emergency homeless accommodation and an exceptionally strong recovery in domestic and overseas tourism. Hotels are just one accommodation type in a situation where all accommodation is in short supply.

"This excess of demand over supply combined with rapidly rising input and wage costs and a staffing and skills shortage after two years of massive revenue loss creates significant upward pressure on market pricing.

"There are just over 22,300 hotel rooms in Dublin. Another 3,500 are coming on stream over the next two years. We need these new rooms and more. We must have a capital city that can cater for all types of visitors with quality and value choices to suit different budgets. Fáilte Ireland has been for some years now trying to encourage both the development of as well as positive conditions for the development of hotels in Dublin through sharing our evidenced-based analysis and through our role as a prescribed body in the planning process.
 
"Ireland is not a low-cost destination, but it is seen as a good value destination, because consumers have found the quality received was worth the price they paid. In recent years our value for money score has been positive and consistent with about 8% saying they got poor value for money while 80% reported they received good value for money. However, early indications suggest these scores are likely to worsen over the summer.

"Ireland’s reputation as a good value destination is something that the industry needs to be very conscious of. If reputation is damaged, it will take time to recover. We continue to share our research with the tourism industry and continue to encourage it to be mindful of not just the revenue for today but our reputation for tomorrow."