A council report has warned Harrogate Convention Centre will suffer huge losses of £250 million unless a major redevelopment is carried out.
The ageing centre is facing a pivotal moment in its 40-year history as it presses ahead with renovation plans while competition from new conference venues – including one planned for Leeds – ramps up.
Harrogate Borough Council owns the venue and has proposed an investment project which could cost £49 million in what would mark the single biggest spend by the authority in its lifetime.
Without this, the council has warned the centre will “fall behind in the market” and “may fail to survive”.
£250 million losses
A report to a meeting of the council’s cabinet next week said the venue could be hit by £250 million losses over the next 40 years which would have to be subsidised by taxpayers.
The warning comes as the clock is ticking until the centre is handed over to the new North Yorkshire Council next April and as questions mount over how the redevelopment could be funded after cash was not included in a devolution deal for the county.
Harrogate Borough Council has also bid for convention centre cash from the government’s Levelling Up Fund.
However, the maximum amount available per project is £20 million and Harrogate is ranked as a low priority area.
The report to next Wednesday’s meeting said:
“The redevelopment of the Harrogate Convention Centre (HCC) site offers the only opportunity to modernise facilities, improve connectivity within and replace failing mechanical and electrical systems – and to turn around the financial performance.
“HCC plays an important role in the district’s and region’s economy, attracting visitors and significant spend each year.
“It is the only event venue in the Yorkshire and Humber region that is able to compete with major facilities in cities elsewhere, such as Liverpool, Manchester, Gateshead and Glasgow.”
Read more:
- Harrogate Convention Centre redevelopment to seek levelling up cash
- Council leader ‘shares disappointment’ over lack of HCC funding in devolution deal
- Harrogate Convention Centre to face competition from Leeds events venue
The new events venue planned for the former Yorkshire Bank HQ in Leeds highlights a growing conference industry which is seeing more venues compete for big events that local economies benefit hugely from.
Council officials have estimated that Harrogate Convention Centre attracts over 150,000 visitors a year, with an economic impact of more than £35 million.
But the venue’s own financial performance has been poor over the last decade when its annual revenue has decreased by an average of 3% per year.
That is according to the new report which described the centre as “underutilised” and said increasing competition and operating costs have resulted in a need to “rethink” its offer.
Redevelopment plan
The redevelopment plans include a major refurbishment of event areas and upgrades to the venue’s heating and ventilation systems.
There are also plans to create a flexible events space for up to 1,200 people. These works were due to start in October after a warning that the centre could miss out on several big events next year, however, the plans have now been delayed.
The next stages of the redevelopment will see a £3.3 million contract awarded for further design, price and programming works.
More than £1.5 million has already been spent on the project before a final decision has been made. This is scheduled for July or August next year – meaning it will be the new North Yorkshire Council which will decide whether to proceed.
If approved, construction on a first phase of works would start in September 2023 for just over a year.
Harrogate Borough Council estimates the upgrades would increase the centre’s visitor numbers from 147,000 in 2020 to 192,000 in 2040, with profits of £29 million over a 40-year period.
The report added:
“Investment in HCC will attract business visitors, support significant employment, encourage conversion of business to repeat leisure visitors and support inward investment.
“The redevelopment has the potential to provide a significant place-shaping, cultural and economic boost to the region.”
