Ireland Needs 10,000-15,000 More Hotel Rooms by 2031 to Meet Tourism Growth

Ireland's new tourism strategy aims to boost revenue by 50 per cent by 2031, but a critical shortage of accommodation threatens this goal. The Government is implementing a 9 per cent VAT rate for food services, lifting the Dublin Airport passenger cap, and introducing a national tourism policy with 71 recommendations to achieve growth.

However, a Crowe report estimates Ireland needs 10,000-15,000 more hotel bedrooms nationally to meet anticipated growth. Minister for Tourism Peter Burke has committed to developing a Tourism Accommodation Strategy, acknowledging the shortfall in hotels, guest houses, and self-catering properties. Current hotel occupancy, especially in Dublin at 84 per cent year-round, indicates limited capacity.

While Dublin has new hotel construction, jeopardized by recent development levy increases, regional Ireland lacks new accommodation activity. For example, Longford has only 116 registered hotel bedrooms with no new projects planned, despite millions in EU Just Transition Fund investment for tourism. High construction and financing costs, planning complexity, and weaker viability constrain new builds in regional areas.

This market failure requires government intervention to stimulate new builds and extensions, particularly in regions like the Midlands and Northwest. Without targeted, time-bound policy support, ambitious visitor growth targets for regional Ireland will not be met, risking the country's tourism potential and value proposition.