11,500 hotel bedrooms needed by 2032 to meet projected tourism demand

New report argues that policies need to be put in place to increase the supply of tourism accommodation

The Irish Tourism Industry Confederation estimates that there is a deficit of 11,500 tourism bedrooms in the State if Ireland is to meet projected demand over the next decade.

The report, carried out by economist Jim Power, identifies that the price of sites, allied to construction inflation, make new builds cost-prohibitive apart from selected urban hotspots and government will have to intervene with a range of policy measures to stimulate developments.

The report, which was prepared for The Irish Tourism Industry Confederation in August 2023, argues that policies need to be put in place to increase the supply of tourism accommodation. Suggested proposals include:

  • Tax breaks such as Accelerated Capital Allowances or an EIS scheme for regionally targeted areas where Fáilte Ireland analysis shows a deficit in tourism accommodation
  • Changes to planning and regulation to facilitate development in targeted areas.
  • Area Specific Incentives such as commercial rates holiday
  • Public-Private Partnerships should be explored with local authorities
  • Targeted Fáilte Ireland investment in attractions

According to the report: “There is a serious tourism accommodation supply issue in Ireland, particularly in the regions, with circa 11,500 additional bedrooms required by 2032 to meet demand and allow the tourism economy to fulfil its potential. The high-risk scenario is that when Government contracts end, there will be a further reduction in the stock of accommodation, particularly in the regions.

“If Government wants to address this problem, it will have to introduce various measures to encourage new development in targeted areas. Without such interventions, the lack of viability will prevent an increase in accommodation from occurring. A number of potential Government interventions have been outlined in this short paper. Increased 17 accommodation capacity will engender sustainable tourism growth that can drive socioeconomic benefits throughout regional Ireland.”

To read the full report, visit:

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