Plan to use Cork student accommodation for tourists abandoned

Representatives of the hotel sector have welcomed the decision, which would have converted nearly 40% of the student beds at the Lee Point complex on South Main St into tourist accommodation

The interior of the apartments at Lee Point on South Main St. File Picture.

The hotel industry has welcomed the scrapping of plans to temporarily use nearly 40% of the rooms in a large student complex in Cork City for tourist and visitor use.

Irish Student Fund Cork (IV), which owns the Lee Point complex on South Main St, has withdrawn its application just four months after being granted planning by Cork City Council for the temporary use of 168 of the complex's 420-rooms for tourist and visitor accommodation from January 1 to May 31 of this year.

The fund said the temporary change of use to allow tourists to stay at Lee Point during the period would allow “optimal use” of the development.

The application and the planning decision, and the subsequent planning appeal, were all made before the start of the third wave of the pandemic.

In granting planning last October, city planners said given the self-catering nature of the accommodation and the temporary use of it until May, they did not believe the move would result in any long-term or significant loss on the city’s hotel sector. 

They also said that the application had been assessed within the context of Covid-19 restrictions and should not be regarded as setting a precedent for future applications where the context will change over time.

“Covid-19 restrictions are considered to be temporary and it is expected that the demand for student accommodation will adjust and continue in the future in Cork City,” they said.

But the Irish Hotels Federation (IHF) appealed the decision to An Bord Pleanála and said apart from the devastating impact of Covid-19 on the industry, 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 IHF, which represents 95 hotel owners in Cork who provide over 4,800 guest rooms, including 2,800 in the Metropolitan region, 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. Room occupancy levels in the last two months of 2020 were at around 12%.

Yesterday, the IHF said it maintains its opposition to applications for change of use which seek to allow the use of student accommodation as tourist accommodation.

“It views with serious concern any developments that could undermine the viability of the hotel and guesthouse sector in Cork and elsewhere,” chair of the IHF's Cork branch, Fergal Harte said.

“In assessing such planning applications, it is imperative that local authorities carry out thorough impact assessments to satisfy themselves that there will be no negative impact on the sustainability of existing businesses in the accommodation sector due to planning applications.

“Pre-Covid, tourism supported 25,300 jobs in Cork and contributed €895m to the local economy.

“However, the existing tourist accommodation sector in Cork is extremely vulnerable, due to the impact of the pandemic restrictions and the outlook for 2021 is extremely precarious.

“Hotels are an important part of tourism’s infrastructure and can play a key role in the recovery of tourism in the city and wider region.

“The IHF supports a level playing field for all providers of tourism accommodation 

including ensuring compliance with legal obligations in relation to planning laws, taxation, regulation and quality assurance for guests.

“The Irish hotel sector is not opposed to development and in particular advocates developments which will improve and enhance the cultural, social, economic and tourism offering of Cork city including developments which will attract a vibrant student population.

“However, we maintain our position with regards to any planning applications that threaten the survival and recovery of existing tourist and hotel accommodation businesses.”