Harrogate Conference Centre faces £250m loss without revamp

The Harrogate Convention Centre opened in 1982

Harrogate Convention Centre could lose £250m and "may fail to survive" unless a major redevelopment is carried out, a report has warned.

Owner Harrogate Borough Council has proposed spending up to £49m to update the 40-year-old building.

The report says without the investment the conference centre, which hosted the Eurovision Song Contest in 1982, would "fall behind in the market".

Ownership is due to pass to the new North Yorkshire Council in April.

During the pandemic it was converted into a Nightingale Hospital. The 500-bed unit did not treat a single Covid-19 patient.

According to the Local Democracy Reporting Service, a report to a meeting of the council's cabinet next week said the venue could be hit by £250m losses over the next 40 years which would have to be subsidised by taxpayers.

"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," the report said.

"HCC plays an important role in the district's and region's economy, attracting visitors and significant spend each year."

It has been estimated that the centre attracts more than 150,000 visitors a year, with an economic impact of more than £35m.

But the venue's financial performance has been poor over the past decade during which its annual revenue has decreased by an average of 3% per year.

The centre hosted the 1982 Eurovision Song Contest

The revamp would see a flexible events space added and upgrades to the venue's heating and ventilation systems.

Harrogate Council estimates the upgrades would increase the centre's visitor numbers from 147,000 in 2020 to 192,000 in 2040, with profits of £29m over a 40-year period.

More than £1.5m 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 and last just over a year.