FUTURE SUPPLY OF: Tourist Accommodation Research in …

[Pages:6]FUTURE SUPPLY OF:

Tourist Accommodation Research in Cork, Galway & Kilkenny

MARKET OVERVIEW

Nationally tourism is growing year on year. 2017 saw 3% growth in overseas tourists, and F?ilte 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.

Tourists

Includes an Overnight Stay

Main Purpose of Visit

Holiday

Visiting Friends & Relatives

Business

Other

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.

IRELAND

OVERSEAS TOURISTS TO IRELAND 2012-2018 (000)

+1% 6,286

+6% 6,686

+6% 7,105

+13% 8,036

+9% 8,742

+7% +3%

9,640(e) 9,022

2012 2013 2014 2015 2016 2017 2018

OVERSEAS AND DOMESTIC TOURISTS TO CORK, GALWAY & KILKENNY COUNTIES 2017 (000)

1,113

1,024

Domestic Tourists Overseas Tourists

1,605

1,673

298 315

CORK Total Tourists

2,718

GALWAY Total Tourists

2,697

KILKENNY Total Tourists

613

*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

Sources: CSO I F?ilte Ireland I NISRA 2017

Research TOURIST REVENUE TO CORK, GALWAY & KILKENNY 2017 (MN)

76%

Overseas

70%

Overseas

59%

Overseas

833m CORK

836m GALWAY

94m KILKENNY

BED STOCK

F?ILTE IRELAND REGISTERED ACCOMMODATION STOCK BEDSPACES BY CITY (JUNE 2018)

The number of F?ilte 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.

HOTELS

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 TOTAL BEDSPACES

79%

82%

83%

GUEST HOUSES AND B&Bs

PREMISES

BED SPACES

CORK 37 594

GALWAY KILKENNY

38

20

434

337

SELF CATERING

PREMISES

BED SPACES

CORK 5

642

GALWAY KILKENNY

8

3

103

25

IRISH WELCOME STANDARD

PREMISES

BED SPACES

CORK 1 1

GALWAY KILKENNY

4

3

91

78

CARAVAN & CAMPING

PREMISES

BED SPACES

CORK 1

200

GALWAY KILKENNY

1

1

280

60

YOUTH & HOLIDAY HOSTELS

PREMISES

BED SPACES

CORK 4

431

GALWAY KILKENNY

5

1

725

29

Outside of F?ilte Ireland registered accommodation Cork and Galway have additional seasonal stock with the addition of a significant amount of student accommodation between June and September.

TOTAL

CORK

PREMISES

BED SPACES

79

8,801

GALWAY

PREMISES

BED SPACES

89

8,966

KILKENNY

PREMISES

BED SPACES

42

3,127

Source: F?ilte Ireland

Research

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

REVPAR (Revenue Per Available Room)

REVPAR GROWTH 2013-18

103 84 +64%

108 86 +64%

105** 76**

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 SUPPLY

The following new supply is forecast.

HOTEL ACCOMMODATION PROJECTS WITH PLANNING

PLANNING 2014-2018

CORK

GALWAY

NEW HOTELS

7

7

HOTEL EXTENSIONS

7

8

NO. OF HOTEL ROOMS

OTHER BEDSPACES (eg., Guesthouses/Hostels) *Camping Pods

1,381

713

218

50

KILKENNY

1 6 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).

Source: trending.ie | STR | Fitzpatricks Associates

PROJECTED HOTEL BEDROOMS 2018-2022

Research

350

240

171

165

8

2018 2019 2020 2021 2022

TOTAL 934 CORK

200

200

56

2018

34

2019

2020

0

2021

2022

TOTAL 490 GALWAY

0

6

0 35 0

2018 2019 2020 2021 2022

TOTAL 41 KILKENNY

CORK HOTEL ACCOMMODATION PROJECTS WITH PLANNING ? CORK CITY (NOVEMBER 2018)

IN CONSTRUCTION

PLANNING GRANTED

Kingsley Hotel

The Windsor Inn

M Hotel Harley Street

Montenotte Hotel

Metropole Hotel

Imperial Hotel

Clancy's Bar,

Princes St

Maldron Hotel, South Mall

Parnell Place

Sullivan's Quay

Horgan's Quay

Boatel, Penrose Quay

IN PLANNING SYSTEM

Wilton Shopping

Centre

Travelodge, Kinsale Road

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

Sources: Cork City Council

Research

GALWAY HOTEL ACCOMMODATION PROJECTS WITH PLANNING ? GALWAY CITY (NOVEMBER 2018)

Glenlo Abbey Hotel

IN CONSTRUCTION PLANNING GRANTED

IN PLANNING SYSTEM

Western Hotel, Prospect

Hill

Menlo Park Hotel

Doughiska Road

Connacht Laundry,

Henry Street

80 Prospect

Hill

Maldron Hotel, Headford Rd

Hotel Meyrick

Travelodge, Tuam Road

Glen Oaks Hotel

Nuns Island ? Canavan

House

Park House Hotel

O'Reilly's Bar &

Kitchen, Upper Salthill

Carroll's Inns,

Dominick St

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

KILKENNY HOTEL ACCOMMODATION PROJECTS WITH PLANNING ? KILKENNY CITY (NOVEMBER 2018)

Pembroke Hotel

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.

Sources: Galway City Council | Kilkenny City Council | Fitzpatrick Associates

Research

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, experience shows 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

PROJECTED HOTEL ROOMS IN CORK, GALWAY AND KILKENNY BY END 2022

35%

PROJECTION OF NEW ROOMS % GROWTH IN ROOM STOCK

934

17%

CORK

490 4% 41

GALWAY KILKENNY

For more go to:

failteireland. ie/Research

Source: Fitzpatricks Associates

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download