Major investments are proposed in the convention center

A multi-million pound investment in Harrogate Convention Center has been announced to ensure the venue reaches its full potential and delivers an even bigger boost to the local economy.

The plans could see £7m spent on building new large breakout rooms in the venue's Studio 2 to enable the center to grow in the competitive conference market.

North Yorkshire Council bosses will be asked to take a closer look at the possibility of reducing the authority's financial subsidy and introducing a more commercial operating model to help attract future support.

Councilors will meet on December 17 to discuss how the planned refurbishment of Studio 2, which will provide breakout meeting facilities for around 1,300 participants, could generate an additional £1.5 million a year. will be informed.

The proposal also includes developing a new business plan and actively seeking other financing opportunities.

Councilor Gareth Dadd, Deputy Leader of the City Council, said: “Harrogate Convention Center is a platform that promotes our town and Yorkshire on a national stage, attracting visitors from all over the country.

“It is important that we maintain the benefits of the convention centre, while at the same time finding opportunities to reduce subsidies, improve facilities and align the center with Harrogate’s long-term vision.

“We want to protect taxpayers' money and move the convention center forward while promoting the town's economy. Investment proposals will be carefully considered in executive session.”

The convention center was built 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 square feet of exhibition space.

However, a lack of larger breakout rooms is hampering the venue's ability to host large-scale conferences to maximize the economic impact of Harrogate and the wider region.

The venue was given a £1.9m grant by the council last year, but that amount was reduced from £2.6m the previous year as catering was brought in-house and rental income continued to rise.

Mark Crane, executive member of the Open Business Council and responsible for economic development, added: “Harrogate Convention Center plays a vital role in Yorkshire's economy, contributing more than £45 million each year through the retail and hospital industries.

“It is vital that we ensure our venues remain at the economic forefront for both Harrogate and the wider Yorkshire region, and the proposals being considered by the Executive are a means of ensuring this.”

The business strategy launched in 2019/20 has seen convention center rental income increase by 21%, with booking bookings showing potential growth of over £4m each year.

With an initial investment of £7 million, the revamped Studio Two is expected to eventually generate an additional £1.5 million in annual income.

This is expected to reduce the annual operating grant to around £1m, but a detailed business case will be required before any investment is approved.

Marketing efforts were undertaken to highlight future opportunities for the convention center. The investigation identified five possible options, ranging from doing nothing to selling the building.

The option of focusing on new studio development and a more commercial operating model is considered by consultants to be the best way forward.

Convention Center Director Paula Lorimer said: “The Studio 2 proposal is very welcome and will significantly improve revenue opportunities for Harrogate Convention Centre.

“This venue is vital to Harrogate’s visitor economy. Conferences, exhibitions, corporate events, banquets and live entertainment generate jobs and business for the town’s shops, bars, cafes, restaurants and hotels, contributing 4,500 per year to the local economy. Valued at over £10,000.

“The center's performance has continued to improve in recent years and the planned investment will help continue this trend.”