The Courier & Advertiser (Perth and Perthshire Edition)
Waterfront hotel plan is at risk as Covid-19 sees demand drop
Business case for luxury accommodation has not been signed off
A £40 million hotel at Dundee’s waterfront is in jeopardy as coronavirus has seen demand for hospitality plummet.
Dundee City Council finance bosses have revealed a business case for luxury accommodation at Site Six has not been signed off and a decision has been made to review the plans, due to a drop in visitor numbers.
The existing office block will house Social Security Scotland and the hotel was to be operated by international hotel group Mariott under its AC Brand.
A report for the council’s policy and resources committee on Monday, states: “In view of the global downturn in tourism due to Covid-19, additional hotel capacity is not anticipated to be required in the short-term, and a review of Site Six is being carried out to allow the remainder of the site to be developed.
“The letting of the office block at Site Six allows the potential ‘flip’ of growth accelerator funding to other job creating uses within the central waterfront area, and this will be explored in more detail in a future report.”
Manny Baber, chairman of Dundee and Angus Visitor Accommodation Association, and general manager of Sleeperz Hotels, Dundee, said it is important to support recovery of the tourism industry in the city.
He said: “The shelving of plans for another £40m waterfront hotel is disappointing for Dundee’s hospitality industry, but understandable, in light of the downturn in travel and leisure tourism directly resulting from the coronavirus pandemic.
“The focus of the city’s accommodation providers now is on continuing to provide Covid-19-secure hotel stays to leisure and business tourism markets and stimulating growth and recovery in this vital business sector.”