DUBLIN WILL NOT have enough hotel rooms to cope with demand over the next two years.

A new report commissioned by Fáilte Ireland by consultants Fitzpatrick Associates says the capital will feel the capacity crunch despite the building of a number of new hotels.

They say that the shortfall could “limit the potential for tourism growth in the longer term and threaten the city’s competitiveness as a visitor destination”.

The report estimates that, after almost ten years of inactivity, a strong pipeline of new accommodation stock is set to come on stream with an additional 5,550 bedrooms projected.

However, most of the new stock is not guaranteed and, in any case, will not be available until 2018 or later. Even under the most modest growth scenario, the city faces a capacity challenge over the next two years.

The report recommends greater market monitoring and interaction with council officials to ensure planning efficiency, as well as better transport links to the suburbs.

The report also suggests that sites for hotels to be higher and more dense to allow more rooms.

Fáilte Ireland CEO Shaun Quinn said that supply is falling when demand is rising.

“Between 2010 and 2015, tourist arrivals to Dublin grew by 33%, yet the stock of available accommodation actually fell by 6%. Given this stark fact, and with further visitor growth anticipated, Dublin’s shortage of tourism accommodation may now be the biggest challenge facing the continuing growth of Irish tourism.”