Report warns of Dublin hotel room shortage

Not only is Dublin facing a major housing shortage, it is also quickly running out of hotel rooms.

A report by Fáilte Ireland has warned that a scarcity of hotel accommodation in the capital could adversely affect tourism in the city.

It estimated that Dublin’s visitor accommodation capacity will need to increase by up to two thirds to cater for the anticipated growth in tourist numbers over the coming years.

In addition, there is also concern that the number of registered guesthouses in the city has fallen by 37% and B&Bs by 57% since 2007.

Fáilte Ireland claimed that, on several key tourism measurements — especially bed nights and earnings — Dublin is already at or close to its peak levels for overseas tourists.

The research showed that occupancy rates in tourism accommodation in Dublin, particularly in hotels, are now at high levels and among the highest for European capitals.

Occupancy rates are returning to pre-recession rates of 70% although profits before tax have not recovered to the same extent.

“Unless more stock becomes available, Dublin runs the risk of being unable to accommodate the anticipated level of demand,” the report warned.

Fáilte Ireland said the current situation presented both an opportunity and a challenge.

The report noted that the city’s accommodation stock is very heavily concentrated on hotels.

While the number of hotels — 151 — has not increased notably in recent years, the number of hotel bedrooms has risen by 15% to 18,718 since 2007.

In contrast, there are just 50 registered self-catering units in Dublin — a figure which Fáilte Ireland describes as very low for a city of its size.

Hostels are the second largest source of tourism accommodation capacity in the capital providing some 3,241 bedspaces.

Last year, almost 4m overseas tourists stayed in Dublin — the highest figure since 2008 — spending €1.3bn and staying an average of 5.6 nights.