Irish Hotels Federation warns of barriers preventing hotel expansions

The Irish Hotels Federation 88th annual conference has been told that structural barriers are stalling hotel expansion across Ireland.

New research showed 45pc of hotel businesses who had plans for additional guestrooms were forced to put their projects on hold, while 88pc of hoteliers cited the gap between per room build costs and return on investment as a major or significant barrier and 72pc identified the planning approval process with its delays and uncertainty as a major or significant hurdle.

Paul Gallagher told delegates that the long term success of Irish tourism depended on the ability to offer high quality approved accommodation in every county.

Paul Gallagher shared “The long-term success of Irish tourism depends on our ability to offer high-quality, approved accommodation across every county. While the ambition to grow is evident throughout our sector, many hoteliers are currently facing significant hurdles that make it difficult to bring new projects to fruition. Between the rising cost of construction and a planning system that often lacks the necessary speed and certainty, the path to expanding our room capacity has become increasingly complex. To meet the goals set out in the Government’s new tourism policy, we must ensure that the practical environment for investment is supportive. By addressing these structural bottlenecks, we can unlock the potential of our regional heartlands and ensure Ireland remains a premier, competitive destination for years to come.”