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FUTURE SUPPLY OF: Tourist Accommodation in Cork, Galway & Kilkenny
Research
MARKET OVERVIEWNationally tourism is growing year on year. 2017 saw 3% growth in overseas tourists, and Fáilte Ireland predicts 7% growth in 2018 and 4% in 2019.
While more trips originate in Great Britain than in any other single market, the US has surpassed GB as the market generating the largest revenue for Ireland. Combined with France and Germany, these four markets account for seven in ten (68%) of Ireland’s overseas tourists.
GROWTH TRAJECTORY Recent data demonstrates strong tourism demand at a national level. If this sustained growth continues tourist numbers will be up more than 20% over the next five years, which will put pressure on current accommodation stock levels. Urban areas historically perform above average, amplifying any accommodation squeeze.
TouristsIncludes an Overnight Stay
Main Purpose of Visit
Holiday Visiting Friends& Relatives
Business Other
IRELANDOVERSEAS TOURISTS TO IRELAND 2012-2018 (000)
OVERSEAS AND DOMESTIC TOURISTS TO CORK, GALWAY & KILKENNY COUNTIES 2017 (000)
Sources: CSO I Fáilte Ireland I NISRA 2017
6,286
2012
6,686
2013
7,105
2014
8,036
2015
8,742
2016
9,022
2017
+6%+6%
+9%+3%
+7%
+13%
+1%
9,640(e)
2018
* Tourist numbers are not available at a city level. Overseas tourist figures are based on 3 year rolling county averages and therefore year on year comparison is not available
1,113 1,024
298
1,605 1,673
315
Domestic Tourists
Overseas Tourists
CORKTotal Tourists
2,718
GALWAYTotal Tourists
2,697
KILKENNYTotal Tourists
613
Research
BED STOCK FÁILTE IRELAND REGISTERED ACCOMMODATION STOCK BEDSPACES BY CITY (JUNE 2018)
The number of Fáilte Ireland registered bedspaces reflects the size of the tourism accommodation sector across the three cities. In all three, hotels dominate tourist accommodation, accounting for nearly four out of every five bedspaces.
TOURIST REVENUE TO CORK, GALWAY & KILKENNY 2017 (€MN)
GUEST HOUSES AND B&Bs
SELF CATERING
YOUTH & HOLIDAY HOSTELS
CARAVAN & CAMPING
IRISH WELCOME STANDARD
Source: Fáilte Ireland
CORK GALWAY KILKENNY
PREMISES BED SPACES PREMISES BED
SPACES PREMISES BED SPACES
2 525 2 304 1 432
17 4,975 13 3,867 7 1,471
10 1,289 12 2,973 5 634
2 144 4 144 1 61
TOTAL 31 6,933 33 7,333 14 2,598
SHARE OF TOTALBEDSPACES 79% 82% 83%
TOTAL
CORK GALWAY KILKENNY
PREMISES BED SPACES PREMISES BED SPACES PREMISES BED SPACES
79 8,801 89 8,966 42 3,127
CORK GALWAY KILKENNY
PREMISES 37 38 20
BED SPACES
594 434 337
CORK GALWAY KILKENNY
PREMISES 5 8 3
BED SPACES
642 103 25
CORK GALWAY KILKENNY
PREMISES 1 1 1
BED SPACES
200 280 60
CORK GALWAY KILKENNY
PREMISES 1 4 3
BED SPACES
1 91 78
CORK GALWAY KILKENNY
PREMISES 4 5 1
BED SPACES
431 725 29
Outside of Fáilte Ireland registered accommodation Cork and Galway have additional seasonal stock with the addition of a significant amount of student accommodation between June and September.
€833m €836m €94mCORK GALWAY KILKENNY
76%Overseas
70%Overseas
59%Overseas
HOTELS
Research
Source: trending.ie | STR | Fitzpatricks Associates
HOTEL MARKET
Tourism in all three cities has grown steadily over the last five years. Occupancy rates are at an all time high.
HOTEL PERFORMANCE FOR CORK, GALWAY AND KILKENNY – YEAR TO SEPTEMBER 2018
CORK GALWAY KILKENNY*
OCCUPANCY 82% 80% 78%
AVERAGE ROOM RATE €103 €108 €105**
REVPAR (Revenue Per Available Room) €84 €86 €76**
REVPAR GROWTH 2013-18 +64% +64% NA
*Data for Kilkenny hotels is not as readily available, however feedback from hoteliers and some limited data from STR suggest a similar pattern to Cork and Galway.
** Kilkenny room rate data is year to date to August 2018.
NEW HOTEL ACCOMMODATION SUPPLYThe following new supply is forecast.
HOTEL ACCOMMODATION PROJECTS WITH PLANNING
PLANNING 2014-2018 CORK GALWAY KILKENNY
NEW HOTELS 7 7
HOTEL EXTENSIONS 7 8 1
NO. OF HOTEL ROOMS 1,381 713 6
OTHER BEDSPACES (eg., Guesthouses/Hostels) *Camping Pods
218 50 20*
HOTEL ACCOMMODATION PROJECTS IN PRE-PLANNING
CORK GALWAY KILKENNY
HOTELS 6 4 3
PROJECTED HOTEL ROOMS IF PLANNING IS GRANTED
700 550 200
Not all of these projects, even those that have gone through planning, will come to fruition. The following projections are made for room stock to the end of 2022, and take into account rooms that may not progress (for differing reasons).
Clancy’s Bar,
Princes St
Research
Sources: Cork City Council
CORK HOTEL ACCOMMODATION PROJECTS WITH PLANNING – CORK CITY (NOVEMBER 2018)
PROJECTED HOTEL BEDROOMS 2018-2022
171
560 0 08 34 6
240 200
350
0 35
165200
TOTAL 490TOTAL 934 TOTAL 41GALWAYCORK KILKENNY
The Windsor Inn
Sullivan’s Quay
Maldron Hotel,
South Mall
■ It is anticipated that new rooms will be predominantly in 4-star hotels (72%). Of the remainder, some 11% of rooms are anticipated to be in 3-star hotels, with 18% in budget hotels
■ Two of the three hotels currently on-site are expected to be completed before the end of 2018, adding 170 rooms to the stock, and the first major addition in five years
■ Almost 1,800 additional bedspaces in student accommodation that are also on-site in and around Cork city, and a further 500 are going through the planning process
IN CONSTRUCTION
PLANNING GRANTED
IN PLANNING SYSTEM
Travelodge, Kinsale Road
Boatel, Penrose Quay
Kingsley Hotel
Horgan’s Quay
Montenotte Hotel
Imperial Hotel
Metropole Hotel
M HotelHarley Street
Parnell Place
Wilton Shopping
Centre
2018 2018 20182019 2019 20192020 2020 20202021 2021 20212022 2022 2022
Hotel Meyrick
Research
Sources: Galway City Council | Kilkenny City Council | Fitzpatrick Associates
■ An additional 350 rooms across ten different hotel projects to be added to Galway’s stock by end 2020 – this represents net addition of 290 (considering the redevelopment of the Westwood hotel (58 rooms) into 394-bed student accommodation)
■ The bulk of additional rooms (77%) are expected to be in 4-star hotels, with another 4% in 5-star hotels, 4% in 3-star hotels and 15% in 2-star or budget hotels
■ Evidence from planning permissions, press releases and other media reports suggest that there has been considerable investment in Kilkenny hotels in the last year, but almost all of this has been in food and beverage facilities or in refurbishing existing bedroom stock.
GALWAY HOTEL ACCOMMODATION PROJECTS WITH PLANNING – GALWAY CITY (NOVEMBER 2018)
KILKENNY HOTEL ACCOMMODATION PROJECTS WITH PLANNING – KILKENNY CITY (NOVEMBER 2018)
Travelodge, Tuam Road
Connacht Laundry,
HenryStreet
Doughiska Road
Maldron Hotel,
Headford Rd
Menlo Park Hotel
Park House HotelGlen Oaks
Hotel
Nuns Island – Canavan
House
Glenlo Abbey Hotel
80 Prospect
Hill
Carroll’s Inns,
Dominick St
Western Hotel,
Prospect Hill
O’Reilly’s Bar &
Kitchen, Upper Salthill
Pembroke Hotel
IN CONSTRUCTION
PLANNING GRANTED
IN PLANNING SYSTEM
934
35%
490
17%
41
4%
PROJECTED HOTEL ROOMS IN CORK, GALWAY AND KILKENNY BY END 2022
■ PROJECTION OF NEW ROOMS
■ % GROWTH IN ROOM STOCK
Source: Fitzpatricks Associates
Research
For more go to:
www.failteireland.ie/Research
CORK GALWAY KILKENNY
ACCOMMODATION SUPPLY/ DEMAND OUTLOOK
The adequacy of the accommodation supply for future growth is considered against future demand, i.e. annual visitors to Cork, Galway and Kilkenny and the bednights they require.
In the context of demand growth expectations
■ For 2019, 4% growth in overseas tourist numbers and 2.0% growth domestically is projected
■ For 2020-22, 3.5% growth in overseas numbers and 2.0% growth domestically is projected
■ Allowing for the strong growth experienced in 2018 and the forecast that overseas tourist numbers will grow at an annual average rate of 3.5% per annum out to 2022, then overseas demand will be up more than 20% over the next five years.
While these reflect national projections, experienceshows that urban tourism grows at a faster rate given the choice and supply of tourist related accommodation and experiences. Given that hotel occupancy rates are at an all-time high… ■ 35% projected hotel room growth positions Cork well to
take full advantage of all future growth opportunities
■ There are clear opportunities for Galway to further unlock growth with additional room supply
■ There are significant opportunities in Kilkenny for additional bed capacity to accommodate future growth
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