Hotel provision: 'The danger is the tourism industry could stagnate'

BEARING in mind the city's ambitious targets to boost revenue from tourism, the predicted shortage of up-market hotel accommodation remains a barrier to achieving these goals.

It is estimated that by 2015 an additional 4,000 four- and five-star beds will be needed to accommodate the desired 63 per cent increase in the number of visitors.

While there has been a dramatic – and welcome – increase in the number of budget hotels that have opened in the Capital, progress at the top end of the market has been slow.

Not that there is any shortage of proposals. Luxury hotels are planned for Haymarket, Caltongate and at the top of Leith Walk. The Waterfront development alone envisages four or five new hotels.

But the reality is that from planning to delivery, the provision of a major hotel can take anything up to four years or more before it opens its doors.

Some would argue that Edinburgh does not need more hotels. Yet occupancy rates remain above 70 per cent for most of the year and at peak times, such as the festivals, rooms are increasingly hard to come by.

During the recession both business customers and tourists have increasingly opted for the many less expensive hotels the city has to offer, but this will not last for ever.

Business tourism contributes more than 300 million a year to the city's economy and demand for conferences continues to grow, with 33 separate organisations signing up to stage events in a single month last year.

The tourism industry overall is worth more than 1 billion annually to our local economy, but there is a danger this could stagnate and that Edinburgh could in future lose a share of visitors and business to its rivals – unless the current stock of 8,000 rooms is increased.

It is encouraging, therefore, to hear that Jumeirah Hotels, one of the world's leading luxury brands, will visit the city with a view to selecting a site for development. This interest has come from the city being represented at a major property trade fair in Cannes, where ten developers expressed an interest in site visits.

Last week the News highlighted the huge number of flights being made by council staff and officials – revealing that in a single month they flew the equivalent of twice around the world.

There is clearly waste in much of that. But it is also clear that on occasion it is wise to speculate in order to accumulate. If any of the visits arranged as a result of this trip to the French coast bear fruit the air fares will be money well spent.