Exclusive: Royal Hall bid ‘will boost town’s struggling conference industry’

Harrogate Council’s Cabinet agreed last week to open negotiations between HIC and the Harrogate Theatre Trust in taking over the iconic venue, which was built in 1903 and officially reopened by Prince Charles in 2008 after a £10.7m revamp, but is currently costing taxpayers £1,000 a day to run.

In an interview with the Yorkshire Post, Angus Houston claims the decision is a major step forward and will allow the HIC to focus on attracting new business following a 40 per cent slump in the national conference industry.

However, he warned that it is far from a done deal, and claimed other bids will still be welcomed.

“This absolutely ticks the boxes for the future of the Royal Hall but it will not be without complications,” he said.

“There is a lot of work to do on this.

“We now have political approval, but the door is not shut for any other not for profit organisation that has an expression of interest.

“What we are looking at is whatever is in the best interests of the Royal Hall and the taxpayer.”

The HIC, which operates as an arms-length organisation to the council, recorded a loss of more than £1m in 2010, with a similar figure expected to be announced for 2011. It announced 38 redundancies earlier this year.

Mr Houston says handing over the running of the Royal Hall will help the HIC to devote all its efforts to reaffirming the spa town’s famous conference industry and securing future events.

Last week, the HIC announced it has secured a number of new events which will bring in over £500,000 to the venue and significant economic benefit to the town and district.

The events, which are from the medical, education and financial sectors, are planned in over the next four years.

“People have forgotten HIC exists for some businesses and we are turning the guns back on the market,” he said.

“The business model has always been built on large very good repeat business events, but a lot of these have dried up in the past few years because of the recession.

“Some of our business has disappeared in that time and we probably haven’t moved fast enough to get that back.

“The great thing is the way we are going after that business now – people are starting to remember us.

“There are a lot of positives but we have got a very tricky 18 months ahead of us.

“We haven’t broken the Royal Hall, it has never been commercially successful.

“It is well-used by local community groups and that must continue but it needs the commercial backbone to it.

“In the past, the HIC was more successful and was therefore able to absorb a lot of the effects.

“Now because our business has dropped off, we are exposed.”

Figures show there were just 57 events in the Royal Hall during the last year, only eight of which were commercial.

The Harrogate Theatre Trust claims it can put on far more events at the venue bringing in as estimated £15m boost for the local economy.

The HIC and Harrogate Theatre Trust are now working together on the bid, with the trust anticipated to take over the running of the building from April 2012.

Mr Houston will report back to the council’s Cabinet in November.

The Royal Hall opened in 1903 as the Kursaal but was renamed following a wave of anti-German sentiment after the First World War. It has hosted performances from Elgar to the Beatles, but structural damage forced its closure in 2002. It reopened in 2008 after a fundraising campaign to pay for the major renovations.