Tweedbank hotel recommended for approval

EXCLUSIVE by DOUG COLLIE

A multi-million pound commercial development at Tweedbank in the Central Borders, including a 70-bedroom Premier Inn, is being recommended for approval by planning officials despite claims the project will suck trade from nearby town centres and jeopardise the financial viability of the accommodation sector in Melrose and Galashiels.

There have even been objections to the planning application from lead officers at Scottish Borders Council who expressed strong opinions regarding the use of 'scarce' industrial land for retail purposes, the potential loss of large numbers of trees, and the likely impact on neighbouring communities.

But in a 30-page assessment of the plans by applicant Duncan Hamilton - the text runs to more than 15,000 words - planner Craig Miller recommends giving the scheme permission with a host of conditions attached to approval. His report will be considered by the council's planning committee early in September.

In his report Mr Miller concedes there has been significant objection to the hotel, especially from Melrose Community Council and several hotel and guest house owners in the Melrose area.

"They consider that the size of the hotel will harm existing tourist accommodation providers in the area and that this, in turn, will harm the vitality of Melrose town centre in particular. Some objectors envisage a price war and others that, with other impacts already occurring such as Air BnB, the market is not there for a hotel of this size in the area.

"Should it be developed, then closures and harm to the local tourist industry are envisaged, especially in the Melrose area. For a breakdown of the current providers and the objections from the hotel industry, members may wish to note the objection from Mr Henderson of Burts Hotel who lists existing hotels and guest houses in Melrose offering just over 170 bedrooms. He lists problems including declining occupancy and casts doubt on the economic benefits and job creation claimed by the applicant."

But Mr Miller also tells the committee: "The agent (for the developer) states that the end user of the hotel will be Premier Inn and that this will attract visitors who would not otherwise have considered the location. He also claims that the hotel will extend the tourist season throughout the year and that a Premier Inn will lend support to the wider local hospitality sector. It is claimed that there has been experience of hotel accommodation shortages. Although there will be a food and drink offer within the hotel, the agent states this tends to be limited and visitors will seek other options in the wider area for eating and drinking."

The agent also submitted an economic statement prepared by Turley’s on behalf of the applicant,  reflecting potential impacts of the scheme when the discount food store was still part of the proposals - it has since been removed from the application.

"This summarised the benefits as an investment of £14.25 million, net creation of 80 full time local jobs when the uses are operating (28-30 in the hotel), net annual GVA operational benefits of up to £3.3 million in the wider area, productivity contributions of £4.4 million to the Borders and construction benefits representing 95 jobs. Although these economic benefits would need to be considered reduced on the basis of the omission of the food store and the figures have also been challenged by local hoteliers, there is no specific contrary information to determine that such stated economic benefits should not carry weight in the consideration of these proposals."

Mr Miller's report continues: "The agent explains that a contract has been signed by Premier Inn and also, the style, number and size of bedrooms would be likely to influence the type of budget hotel locating at the site, given the fact that the application is submitted in full with final layout and designs. That this budget hotel offer does not yet exist in the Central Borders area (or more widely, for that matter), means that there is a qualitative difference in the provision of hotel bed spaces from those already being provided, with the nature and length of stays offered by traditional town centre hotels being quite different from that offered by this proposal. The effect is that the proposed provision should complement, rather than draw from the accommodation being provided by existing hoteliers locally."

And councillors are told there are other factors that need to be taken into account, in response to the objectors’ comments on impact on existing businesses and town centres. 

"Although they have claimed that there is declining demand and occupancy rates are decreasing, there is also information to suggest that since the arrival of the railway, visitor numbers have increased significantly in the Borders, thereby potentially increasing the demand for accommodation. The following information is known:  An increase in visitor numbers in the Borders of 6.1% between 2014 and 2016, reversing a downward trend.Overall travel on the railway increased by 9.5% in Year 2 compared to Year 1. A survey for the Government suggested 60% of travellers were using the train for tourism, 41% of these travelling from Edinburgh to the Borders or Midlothian."

The planning officer's document has this to say on the claimed harm to the tourist sector : "Taking all the above factors and information into account, it is considered that there is insufficient evidence or justification to oppose the proposed hotel on the basis of town centre or economic impact. Whilst there will be likely to be some impact on competitors, the planning system is designed not to specifically protect individual operators or inhibit private market competition.

"There are economic benefits which have been identified as a result of the proposals and there is no firm contrary evidence to suggest there would be any particular detrimental effects on town centres such as Melrose or Galashiels. Indeed, nearly half of the bedrooms in existing hotel accommodation in Melrose already lie outwith the town centre."

The document concludes: "In conclusion and subject to compliance with the proposed schedule of conditions, the development is considered acceptable when assessed against the Local Development Plan and Supplementary Guidance. The reduced scheme represents a mix of uses which have largely been identified as being required in the area, maximising on the prominent and gateway position between the A6091 roundabout and the railway terminus. Impacts resulting from the uses are considered to be outweighed by the benefits anticipated from the development, including impacts on the woodland boundaries to the site."

The recommendation for approval from the council's chief planning and housing officer is accompanied by 23 separate conditions which would have to be complied with by the developer.