‘3,000 hotel rooms to be built by 2020’

OUR tourist sector got a welcome boost yesterday with the news that Dublin will welcome 3,000 extra hotel bedrooms in the next three years.

With more tourists visiting our shores and many hotel rooms currently occupied by homeless families, there is a burgeoning demand for holiday accommodation.

However, the Construction Industry Federation (CIF) has warned that spiralling insurance premiums are adding significantly to construction costs.

It also said that damages claims are rising in the courts, which is also impacting on the industry. More than 900,000 tourists came here during the month of May alone, an increase of 7% on last year. And to meet the demand, Construction Information Services (CIS), which monitors building projects, said it has seen a rise in the number of hotels being built or in the planning process. It said the 3,000 extra hotel bedrooms in Dublin will be ready by 2020, marking a 15% increase of the total current stock.

The CIF said the increase will boost jobs. ‘Hotels typically demand a high level of specification, so subcontractors with specialist skills and experience in delivery of a quality product will be most in demand,’ said Seán Downey, CIF director for specialist contracting.

However, the CIF said building firms have reported excessive increases in employer liability and public liability premiums, rising by 50% in some incidences.

Dermot Carey, director of safety and training with the CIF, said: ‘Increases of this level are unsustainable and unjust.

‘While companies expect premiums to increase as their turnover grows, the experience on the ground is that these increases are have grown disproportionately.’

Mr Carey also said that rising damages claims for ‘minor or questionable injuries’ was an issue that needed to be addressed.