Significant numbers of Ukrainians remain in tourist accommodation across Munster

Considerable challenges remain for the Government as a number of hotels that have been providing accommodationfor Ukrainians are expected not to renew their contracts or will only offer to provide some rooms when the summer season arrives, write Ciara Phelan and Jack White

The cost of contracts between the State and private providers ranges from €16,500 up to €7.8m, according to documents covering the final three months of 2022.

THERE has been an increase in the number of holiday homes, hostels, and B&Bs in Munster that are accommodating a significant number of Ukrainians, new data has shown.

The cost of contracts between the State and private providers ranges from €16,500 up to €7.8m, according to documents covering the final three months of 2022.

The data, obtained by the Irish Examiner, shows just 16 contracts account for over €39m for quarter four of 2022.

Seventeen contracts above €1m were awarded to providers in Cork, Donegal, Kilkenny, Clare, Galway, Mayo, Limerick, Tipperary and Westmeath.

The price agreed between a hotel and the State in documentation provided by the Department of Integration outlines the amount awarded, on condition the provider upholds their part of the deal.

In Munster alone, there are over 30 contracts, mostly for B&Bs and hostels, including:

• In Cork, UGP Buttevant Ltd received a contract worth €1m for The Convent in Buttevant;
• In Clare, UGP Buttevant Ltd also received €950,998 for Shannon Town Centre;
• In Clare, Sleepzone Ltd received €748,800 for the Burren Hostel;
• In Kerry, Dingle Hospitality Ltd received €886,275 for the Dingle Harbour Lodge;
• In Kerry, Lough Currane Holiday Homes received €692,640 for Lough Currane Holiday Homes;
• In Waterford, Murach Group was awarded €678,900 for Gracedieu Manor;
• TV presenter and wedding organiser Peter ‘Franc’ Kelly, who in 2020 purchased an old convent, also has a contract for Quarter 4 to house Ukrainians in the building in Rosscarbery. Documents show the contract for Weddings by Franc Ltd at €603,200. He also held a contract worth €622,440 in Q3;
• In Limerick, Sonas Hostels Kilfinane Ltd received a contract for €300,600 for Ballyhoura Luxury Hostel;
• In Tipperary, The Arch Accommodation B&B have a contract for €146,790.

In other parts of the country, some hotels received over €1.2m for their services, including:

• In Kilkenny, Benton Finance and Real Estate Consultancy Ltd for Troysgate House;
• In Mayo, Downhill Inn Ltd for Downhill Inn;
• In Donegal, CLR Enterprise Private Ltd for Bayview Hotel.

The Government has admitted that it will have to continue to use hotels in the medium-to-long term due to the lack of available space and “challenges” facing them in terms of sourcing new areas for reception centres.

A senior source has said a number of hotels that have been providing accommodation to Ukrainians have decided not to renew their contracts or have only offered to provide some rooms.

This will result in an “extremely challenging” time ahead for the State to secure more shelter.

The source said the number of Ukrainians arriving in Ireland has stabilised recently. However, this can fluctuate depending on a number of factors and there is no expectation that the numbers arriving will begin to decrease.

A spokesperson for the Department of Tourism has acknowledged the reduction in available accommodation for tourists has led to concerns about the impact on businesses that rely on a thriving tourism industry, such as restaurants and cafes.

The department is in contact with Fáilte Ireland and is working to get an analysis of available data to identify with greater accuracy those towns or areas that are most impacted.

Officials are working on ramping up the use of retrofitted office buildings across the country where some Ukrainians can be expected to be placed.

In recent days, an Oireachtas committee on tourism heard that almost a third of all registered tourism stock outside Dublin is now contracted to the State.

TDs were told the use of tourist accommodation for housing Ukrainians and people seeking international protection could cost non-accommodation tourism providers more than €1.1bn in lost revenue this year.

It comes following reports that the Department of Integration has offered lower rates to hotels and other providers under new contracts.

Fine Gael’s Martin Conway has said the manner in which new contracts are being offered is a “take it or leave it offer”.

The Clare senator said it was “penny-pinching” and condemned the decision given the providers dug “the Government out of a hole”.

However, a senior source said renewed contracts would be lower due to the State moving to a bed-only service for Ukrainians as the phasing out of free meals began late last year.

The Government recently made the decision to standardise rates and terms across all accommodation provided to Ukrainians.

Roderic O’Gorman said a questionnaire to providers seeking their intentions as to plans for the renewal of contracts or otherwise has been circulated. Picture:Gareth Chaney/Collins

Under the new contracts, adult guests must contribute €10 per day for food, while the contribution for children is €5 per day.

The rates are calculated on a per-adult and per-child basis, with the highest rate paid for a single adult, and lower rates paid for supplementary adults and children.

The department said the “goal is to ensure the best value possible for the tax-payer, by maximising the accommodation it is possible to provide within the current budget”.

The new policy has been put into effect to “ensure consistency and equity” in the rates being offered and the Department said they believe these are fair and sustainable rates based on location and type of accommodation offered.

Integration Minister Roderic O’Gorman has also said that the department is in ongoing negotiations with a significant number of hotels that have previously been accommodating Ukrainians on a full-board basis.

He said a questionnaire to providers seeking their intentions as to plans for the renewal of contracts or otherwise has been circulated.

Ireland is now accommodating over 83,390 people between those fleeing Ukraine and international protection applicants. This includes over 63,090 Ukrainians who have sought accommodation from the State and over 20,300 international protection applicants currently housed by the international protection accommodation service (IPAS).

The Department of Integration is obliged to publish a list of contracts formally signed off each quarter that have been awarded under a special EU derogation that permits the department to enter into contracts in the context of the Ukraine accommodation crisis without going to formal tender.

However, the department said no similar obligation exists to publish the same information for international protection accommodation.

Last week, the Cabinet committee on Ukraine was told a total of 1,228 beds will be lost from the system in mid-April due to hotels deciding not to renew contracts to accommodate asylum seekers, not from Ukraine.

A source said it has become harder to source accommodation for asylum seekers due to protests at properties.

The transit hub at Citywest also remains closed to new arrivals, as it is currently “oversubscribed”.

Over 450 asylum seekers currently have not been provided State accommodation on arrival into Ireland.

The Irish Examiner also understands the State is facing up to 87 legal challenges by those seeking asylum here who were not provided with accommodation.

It is estimated that around 29 asylum seekers are arriving in Ireland every day.

A Department of Justice spokesperson confirmed there were 15,240 applications pending by asylum seekers up to March 31.

There were an additional 1,084 appeals pending at the International Protection Appeals Tribunal on April, 5th.

As of March 26, there are over 20,200 people accommodated by IPAS compared to 10,000 at this time last year.