Irish Hotels Federation moves to stop tourists using Cork student complex

Regardless of An Bord Pleanála’s ruling, the IHF may effectively have won the case as a decision is not due before early May.

Lee Point Student accommodation, South Main Street, Cork. Its owners want tourists to stay at the facility between January 1 and May 31 to allow 'optimal use' of the development

The Irish Hotels Federation has lodged an appeal with An Bord Pleanála in an attempt to prevent a large student accommodation complex in Cork City from being available for use by tourists for most of the first half of 2021.

Hoteliers in the city claim allowing such a development during the academic year would threaten the viability of local hotels.

The IHF is challenging the recent decision of Cork City Council to grant planning permission to the owners of the Lee Point student facility on South Main Street in Cork for a temporary change of use of 168 of the 420 living units in the complex for tourist and visitor accommodation.

The investment fund which owns Lee Point, the Irish Student Fund Cork, wants to allow tourists to stay at the facility between January 1 and May 31 to allow “optimal use” of the development.

Regardless of the board’s ruling, the IHF may effectively have won the case as a decision is not due before early May.

The IHF, which represents 95 hotel owners in Cork who provide over 4,800 guest rooms, including 2,800 in the city, said its industry had experienced an unprecedented collapse as a result of Covid-19 with revenues projected to be down over 70% compared to 2019 levels.

We’re calling for Emergency Govt. Grants to support hotels & guesthouse now facing enormous financial losses and uncertainty @MichealMartinTD @LeoVaradkar @EamonRyan @Paschald @mmcgrathtd @cathmartingreen@Irishtourismind @ElainaFitzKane

IHF Statement 👉 https://t.co/t3e0dacrAr pic.twitter.com/i1any8lVOe

— Irish Hotels Federation (@IHFcomms) December 22, 2020

The IHF said its members were struggling under enormous financial pressure and facing immense uncertainty in relation to 2021 which was looking like an “exceptionally challenging” year.

It claimed the use of Lee Point for tourist accommodation would create “an environment of unfair competition”, particularly as the owners of student accommodation did not have to pay commercial rates, commercial water charges or VAT.

“The mix of accommodation available in Cork city has a significant impact on the economic sustainability of the hotel and guesthouse sector,” it observed.

The IHF added: “The viability and long-term sustainability of the sector would be seriously undermined by any influx of additional student accommodation capacity for use as tourist/visitor accommodation."

The organisation has called on Cork City Council to play an increased role in assessing the impact of such developments on existing hotels and guesthouses in the city but warned against having “a permissive attitude” to their use for tourist accommodation.

The IHF said it was unfathomable that planning permission would be granted to allow the owners of student accommodation to encroach on the existing overcrowded tourist accommodation sector by adding an additional 168 rooms to the market during term time.

It warned tourism revenues in Cork city and county were expected to drop from €895m in 2019 to €225m last year with the potential loss of 18,600 jobs across the area.

“There simply is no room in the sector for additional supply and competition for exceptionally restricted demand,” the IHF said.

The IHF believes allowing the council’s decision to stand would also set a dangerous precedent.

Green Party councillor, Dan Boyle, claims the change of use sought by the owners of Lee Point is indicative of a fall-off in demand for students for such accommodation as a result of the pandemic and suggested there was the potential for over-supply of student bed spaces in the city given there were a number of other large similar developments in the pipeline.

The Lee Point development was built by high-profile construction firm, BAM, as part of its large-scale regeneration of the city’s Brewery Quarter including the former Beamish and Crawford site on South Main Street.

Cork City Council said the change of use of student accommodation during term time would normally be considered unacceptable but noted such temporary changes had been allowed in similar schemes in Dublin by An Bord Pleanála.

Council planners noted the objection by the IHF but claimed the type of accommodation on offer at Lee Point would be self-catering which would “not be akin to typical hotel room space on offer in the city centre”.