Developers to invest €450m in Kilkenny centres

Profile: Kilkenny A large amount of new retail space is coming on stream in the Marble City as it attempts to lure shoppers from other major regional centres nearby, reports Michael Parsons

Anyone who has visited the bustling streets of Kilkenny this summer won't be surprised to hear that the Marble City has become the country's leading inland tourist destination.

Its two major summer cultural events - the Cat Laughs comedy festival and the recent arts festival - attracted a combined total of 110,000 visitors to a city with a population of just 25,000. Declan Murphy of Kilkenny Tourism said the industry now accounts for "one-in-four jobs and generates annual turnover in excess of €100 million".

But the real key to Kilkenny's economic success is its ability to attract visitors all year round. Just 70 miles from Dublin, with good rail and road links and a reputation for both high culture and an animated nightlife, Ireland's "medieval capital" is established as a favourite destination for weekenders and a popular "specialist venue" for events such as weddings and corporate conferences.

Four new hotels have opened in the past year and more are planned. New business meeting facilities include the magnificent Parade Tower at Kilkenny Castle - stunningly refurbished by the Office of Public Works - and a purpose-built 1,500-seat convention centre at the Lyrath Estate Hotel.

Burgeoning visitor numbers, coupled with a projected 50 per cent increase in the local population over the next decade to 35,000, is fuelling demand for new shopping outlets. But developers and retailers eager to tap into this market have long been frustrated by the lack of large development sites and Kilkenny's famously tough, heritage-conscious planners. However, two prime "brownfield" sites, totalling some 23 acres, have finally become available and opened the way for the biggest urban regeneration projects in the city's history.

Some €450 million is being invested to create MacDonagh Junction and Citymart (see below) - two major new shopping centres expected to create thousands of new full and part-time jobs, bring dozens of new "big name" retailers to the city and provide extra residential accommodation within walking distance of an increasingly car-choked city centre.

The construction of MacDonagh Junction has already created a mini building boom and is providing temporary employment for 600 people. And there is good news ahead for building workers. As construction moves towards completion next summer, developers hope to embark on the Citymart project.

Both developments have been designed to comply with the plans of the Kilkenny local authorities who are anxious to avoid the drift to "out-of-town" shopping. John McCormack, director of corporate affairs for Kilkenny County Council, says "the strength of Kilkenny lies in the attractiveness and vibrancy of its central core".

Tourism officials believe that Kilkenny's "unique" shopping environment is a significant attraction for both domestic and overseas visitors.

With many urban centres in Ireland increasingly acquiring the "cloned" look of British high streets, Kilkenny's medieval network of streets and lanes offer an attractive mix of traditional shops selling a range of indigenous products.

Nationally known "Brand Kilkenny" goods like Nicholas Mosse pottery, Chesneau leather bags, Rudolf Heltzel gold jewellery and Jerpoint glass can be bought "at source". Many local craftsmen, such as silversmiths Michael Rafter, Des Byrne and JMK also operate small, studio-based outlets where shoppers can order bespoke pieces and actually see the work being done.

To date, British "multiples" have a limited presence - most visibly a trio of Monsoon, Boots and Argos cheek-by-jowl on the High Street.

But some business leaders fear that the city is "leaking" shoppers to other towns in the south-east, especially Carlow where the Fairgreen shopping centre offers customers stores such as Tesco, Next and River Island.

Pat Crotty, a Fine Gael councillor and leading businessman, said the local traders broadly welcome the arrival of the new shopping centres although there are concerns about the increased pressure on the city's infrastructure.

A random survey of shoppers suggests that congestion - of people and traffic - in Kilkenny's city centre is a major gripe. There has been some limited pedestrianisation, most notably on St Kieran's Street which has seen the emergence of an open-air café culture. But Tony Walsh, director of services for the city, says that pedestrianising the High Street won't be possible until a planned programme of road-building is completed.

He hopes this may happen by 2009 when Kilkenny will celebrate the 400th anniversary of the charter according its "city" status by King James I.