DUNDEE needs a 500-room boost in hotel stock and more bars and restaurants to cope with the anticipated rise in visitors to the city sparked by its £1 billion waterfront regeneration.

That is in spite of an unprecedented surge in hotel investment currently being made in the city, which includes the development of The Custom House, Dundee's first five-star hotel, and a 91-bedroom Malmaison overlooking the Tay.

The call for a further five 100-bedroom hotels was made by Mike Galloway, director of city development at Dundee City Council, amid the expectation the planned V&A (Victoria and Albert) museum will attract a further 300,000 visitors to the city a year.

The £45 million attraction, which is expected to open in 2015, is the centrepiece of waterfront regeneration, in which £500m has so far been spent on infrastructure projects.

An economic analysis has concluded the city's tourism industry will generate £1bn in revenue as an extra three million visitors come to the city between 2015 and 2025, leading to calls from the council for further investment in hotels, bars and restaurants.

Mr Galloway said: "The dramatic growth in visitor numbers over the next decade will create significant demand for much-needed new accommodation, restaurants, bars, retail and allied businesses.

"We already estimate the city will need five hotels offering 100 beds each, and are urging hotel operators to consider opening new ventures.

"The Dundee Waterfront is a once in a lifetime opportunity that is creating investment opportunities for the UK hospitality industry to share in Dundee's growth."

On top of the major hotel operators which have committed to the Waterfront, bar and restaurant operators have been investing in the city. These include Nandos and local leisure firm Fuller Thomson, which runs three outlets in Dundee.

Its joint owner Gary Thomson said: "We are delighted with the opportunity for expansion that Dundee has presented.

"We would encourage other operators to take a fresh look at the city."