Dundee’s economy will be boosted by a billion-pound decade of leisure and tourism spending following the completion of the V&A museum, it has been claimed.
And the team behind the wholesale transformation of the city’s waterfront reckon the prospect of hundreds of thousands of new visitors will encourage investors and would-be hotel operators to plough their money and efforts into destination Dundee.
A study by specialist consultants has shown that an additional 500 new hotel beds will be needed to accommodate the increase in demand, with the annual entertainment spend in the city centre expected to rise by at least £100 million.
Director of city development Mike Galloway said the surge in visitor numbers meant as many as five new hotels could be needed on top of an estimated 1,000 beds already available in the city, and the Malmaison, Custom House and railway station hotel sites already in planning and development.
“This represents an outstanding business opportunity for additional hotel developers, owners and operators to invest in the city,” Mr Galloway said.
“We believe that a further five hotels could be accommodated in both the waterfront area and wider city region, and would encourage hotel operators to make contact with us at their earliest opportunity.”
It is expected that the £32m Olympia Swimming Pool, £14m rail station, a marina at City Quay, creative industry units at Seabraes and a host of other commercial and infrastructure projects will also help pull in the crowds from 2015.
Planners say they have no preferences over likely sites, and Mr Galloway stressed it was important for the city to secure a “range that suits all pockets”. He also said city fathers hope a top-end brand will base itself right next door to the museum.
“We have an aspiration for the site immediately to the north of the V&A to be a hotel, and we would imagine that would be the highest-rating hotel in the waterfront with a prime position overlooking the V&A,” he said.
“We would want to see hotel operators and investors coming forward with interest.”
The prospective developments could create hundreds of jobs directly, indirectly and in construction with the anticipated economic benefit likely to shared by new bars, restaurants and shops.
Anuraag Badola from consultancy firm TRI Hospitality, which carried out the research on behalf of the waterfront project said Dundee had a “strengthening profile” and offered exciting opportunities for investors, developers and operators. “The call by the Dundee waterfront team for five more hotels is timely, will be well received by the hospitality industry, and will hopefully result in new hotel brands opening in the city in the next two to three years,” he said.
Mr Galloway also revealed that plans for a new hotel above the new £14m Dundee railway station had attracted six interested parties, with final bids expected to be submitted during the summer.
And two operators have contacted the project board to express interest in running a new marina at City Quay, despite the project having not yet been formally put to the market.
“We’re at an early stage, but the interest is very encouraging,” Mr Galloway said.
The call for investment comes in advance of the second Dundee Economic Summit, which is to be held at the Bonar Hall on Wednesday.
The event features a keynote address from Bilbao academic and ‘Guggenheim effect’ expert Dr Beatriz Plaza, as well as a string of updates from city officials and businesses.