Major investment proposed for convention centre

A multi-million pound investment in the Harrogate Convention Centre has been unveiled to ensure the venue can reach its full potential and provide an even greater boost to the region’s economy.

The plans could see £7m spent on new larger breakout rooms in the venue’s Studio Two, to help the centre thrive in the competitive conference market.

Members of North Yorkshire Council’s executive will be asked to explore in detail the possibility of introducing a more commercial operating model, which would reduce financial subsidies from the authority and help attract future backing.

Councillors will meet on 17 December 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 £1.5m annually.

Proposals also include developing a new business plan and actively looking for other funding opportunities.

Council deputy leader, Councillor Gareth Dadd, 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 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.”

The convention centre was constructed in 1982 and its 2,000-seat auditorium is one of the largest purpose-built spaces of its kind in the UK. The building also has 140,000 sq ft of exhibition space.

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 £1.9m was provided for the venue by the council last year, although the figure had reduced from £2.6m in the previous year after catering was brought in-house and revenue from lettings continued to grow.

Council executive member for open to business, Cllr Mark Crane, whose responsibilities include economic development, added: “The Harrogate Convention Centre plays a vital role in Yorkshire’s economy and contributes more than £45m every year through the retail and hospital industry.

“It is imperative we look to ensuring 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% increase in income from lettings at the convention centre and forward bookings indicate potential growth of more than £4m each year.

With an initial investment of £7m, the revamped Studio Two is projected to ultimately generate an additional £1.5m in annual income.

It is expected this would reduce the annual operating subsidy to about £1m, although a detailed business case would be required before the investment is approved.

A marketing exercise has been undertaken 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 £45m 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.”