More than £35 million is to be invested in four new hotel projects in Letter kenny, Donegal's largest town, in the next two years.
Spurred on by the peace process and the boom, local hoteliers believe they need to increase capacity and market the town as the "gateway to north Donegal".
The town has only two hotels, but the new projects will see the number of grade A rooms treble to more than 450. Traditionally, many visitors come from Northern Ireland and also Scotland - where many Donegal people emigrated to over the years. And it is now thought that more foreign and Southern visitors could be attracted to the area. The Troubles have set tourism back, and the fact that the quickest route from Dublin to north Donegal is through Northern Ireland has not helped. So the beginning of daily flights from London Stansted to Derry - just 40 minutes' drive from Letterkenny - is welcome.
Letterkenny is also hoping to cash in on the lucrative conference business. "We're losing out hugely," notes hotelier Terry McEniff. "It's a growing town with a lot to offer but we need more accommodation." Indeed, when a big event like the Donegal International Rally is staged, some visitors find themselves in hotels an hour's drive away.
The McEniffs are planning to build a new £8 million, 120-bedroom hotel on the main approach road to the town. Work on an £11 million up-market hotel is to start in the autumn on a site nearby. It is being developed by Mrs Olive Byrne, whose family run an oil distribution business. It will have 108 bedrooms, conference facilities and a leisure centre.
Work is well advanced on a £10 million reconstruction and enlargement of the Hotel Clanree, which will have 110 bedrooms as well as leisure and conference facilities, while on the town's main street a 65-bedroom hotel and 21-room hostel are nearing completion. This complex will also incorporate some shops and a multi-storey car park. The total investment is likely to exceed £6 million.
The town is already the entertainment hub of north Donegal. Its population is forecast to grow from 13,000 to 18,000 by 2010 - and the lower main street area is being transformed under an urban renewal scheme.