Still room for more growth after opening of two harbour hotels

Does Galway city have too many hotels ? It is a valid question, but one obviously well researched by the developers of two new properties in the city - the Radisson SAS and the Galway Harbour Hotel.

Built in close proximity, both command waterfront views. The Galway Harbour Hotel is located on land owned by the merchant family of McDonaghs and backs on to the tidal dock area, while the Radisson SAS looks out over Lough Atalia and is a short walk from the railway station.

Already, there are 22 three-star plus hotels in Galway city, and four of these have conference facilities with an average capacity of 450 people.

However, the Radisson SAS has eight meeting rooms and the largest can cater for 800, or up to 1,000 for a standing reception. This has helped it to secure a significant booking in the domestic social calendar. It will be hosting the Lord Mayor's ball, held in aid of charity later this month, which has taken place in the Great Southern Hotel for the last 27 years.

The Radisson SAS is the city's first international hotel, according to its manager, Mr Juergen Wirtz, and the second managed by the multinational group in Ireland since it opened in Booterstown, Dublin.

It has just over 200 rooms, an all-day restaurant and bar, and is due to open a fully-fitted health centre by June.

The Radisson SAS chain works on the brand loyalty concept. Recent research on the Galway accommodation market indicates that brand loyalty and grouping are very significant, and benefit from national and international marketing and a central reservations system.

The business and conference market is a very important dimension to Galway's thriving tourist industry, which runs from March to October, with highlights being the Galway Arts Festival and Galway Race Week spanning late July and early August.

The industry was hit early in the season this year by restrictions associated with the foot and mouth disease, but these were lifted in time to ensure a busy May bank holiday weekend.

The business sector reflects the predominance of service industries in the local economy, while domestic tourism is valued at £1 million (€1.27m) per annum, and the market extends from Ireland, to Britain, the US and Continental Europe. The research found that some 50 per cent of businesses use hotels for meeting or seminars, and half of such custom has a preference for the city centre.

However, locations like the Galway Bay Hotel in Salthill, and the Connemara Coast Hotel in Furbo, as well as the Galway Bay Golf and Country Club in Oranmore, also take a share of the conference market.

Challenges facing the sector include retention of staff in a highly competitive jobs market, and the risk of saturation. Research commissioned back in 1997 by the Galway Chamber of Commerce found that visitors stay an average of 3.5 days in the city, made up of two "peaks" - a two-day and seven-day stay. It found that Galway was not a family destination - the majority of tourists travel as a couple or with other adults, and the typical visitor is 25 to 34 years old.

It found that the socio-economic profile was changing, with the total percentage of A, B and CI categories falling since 1994. Referrring to the study at a tourism seminar, the then president of the chamber, Mr Michael Hegarty, noted that the consensus among the tourism trade was that Galway should move towards establishing a higher yielding, better managed sustainable industry.

The new venues in the harbour area may contribute to that. Property sources say that a number of operators are still seeking locations in Galway city.