A multi-million pound investment in the Harrogate Convention Centre has been unveiled.
It's to ensure that the venue can "reach its full potential" and provide a greater boost to the region’s economy.
The ambitious plans could see £7 million invested in new larger breakout rooms in the venue’s Studio Two.
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 17th) 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.
The proposals also include developing a new business plan and actively looking for other funding opportunities.
North Yorkshire Council’s deputy leader, Cllr 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.
However, 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, Cllr 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.
“It is imperative that we look to ensuring that the venue remains at the forefront of the economy for both Harrogate and the wider Yorkshire region, and the proposals which will be considered by the executive are a means to ensuring this.”
A business strategy launched in 2019/20 has seen a 21 per cent increase in income from lettings at the 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.
The convention centre’s director, Paula Lorimer, said:
“The proposals for Studio Two are very welcome and would significantly improve revenue opportunities for the Harrogate Convention Centre.
“This venue is integral to the visitor economy of Harrogate. Its conferences, exhibitions, corporate events, banquets and live entertainment create jobs and business to the town’s shops, bars, cafes, restaurants and hotels – worth more than £45 million a year to the local economy.
“In recent years, the centre’s performance has continued to improve, and the planned investment would help this trend to continue.”
Developers and other venue operators were consulted as part of the market testing, and partnerships that have been adopted elsewhere in the country were explored.
Partnership work in Harrogate could include looking at collaborations with universities, colleges and the York and North Yorkshire Combined Authority to unlock new opportunities and funding and widen the audience appeal of the centre.
The convention centre, which is situated in the heart of Harrogate, has a 2,000-seat auditorium and 13,000 square metres of exhibition space.
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