New £7m investment for Harrogate Convention Centre is unveiled before crucial meeting
A major new investment in the Harrogate Convention Centre has been unveiled “to ensure that the venue can reach its full potential” as the venue’s future is weighed up.
The ambitious plans could see £7 million invested in new larger breakout rooms in the venue’s Studio Two, in a bid to ensure that the centre can thrive in the extremely competitive conference market.
Members of North Yorkshire Council’s executive will be asked to explore in more detail the possibility of introducing a more commercial operating model, which would reduce the financial subsidies from the authority and help to attract future investment.
Councillors will meet on Tuesday next week, December 17,when they will be told that the planned transformation of Studio Two, which would provide breakout conferencing facilities for about 1,300 delegates, could generate an extra £1.5 million annually.
North Yorkshire Council’s deputy leader, Coun Gareth Dadd, whose responsibilities include finance, said: “The Harrogate Convention Centre is a venue that promotes the town and Yorkshire on a national stage, bringing in visitors from across the country.
“It is critical that we retain the benefits of the convention centre while at the same time finding opportunities to reduce our subsidy, improve the facilities and align the centre with our long-term vision for Harrogate.
“We want to take the convention centre forward while still protecting taxpayers’ money and promoting the economy of the town, and the proposals for the investment will be carefully considered during the executive’s meeting.”
Constructed in 1982, the centre has one of the largest purpose-built auditoriums in the UK.
But a lack of larger breakout rooms has hampered the venue’s ability to host larger conferences to maximise its impact on the economy for Harrogate and the wider region.
A subsidy of £1.9 million was provided for the venue by the council last year, although the figure had reduced from £2.6 million in the previous year after catering was brought in-house and revenue from lettings continued to grow.
North Yorkshire Council’s executive member for open to business, Coum Mark Crane, whose responsibilities include economic development, said:
“The Harrogate Convention Centre plays a vital role in Yorkshire’s economy and contributes more than £45 million every year through the retail and hospital industry."
A business strategy launched in 2019/20 has seen a 21 per cent increase in income from lettings at Harrogate Convention Centre and forward bookings indicate potential growth of more than £4 million each year.
With an initial investment of £7 million, the revamped Studio Two is projected to ultimately generate an additional £1.5 million in annual income.
It is expected that this would reduce the annual operating subsidy to about £1 million, although a detailed business case would be required before the investment is approved.
A marketing exercise has since been undertaken by a consultancy firm called 31Ten, which has wide experience of the conference market, to highlight future opportunities for the convention centre.
The review identified five possible options which ranged from doing nothing to selling the building.
The option to focus on the new studio development and a more commercial operating model is seen as the best way forward by the consultants.
Harrogate Convention Centre’s director, Paula Lorimer, said: “The proposals for Studio Two are very welcome and would significantly improve revenue opportunities for the convention centre."