Harrogate International Centre (HIC) will outsource further jobs and put a stronger focus on corporate events in a bid to offset record losses at the venue.
 
The latest financial forecasts for the HIC predict a loss of over £1.5m in the next 12 months on top of £941,000 for the current financial year. The venue is owned by the Harrogate District Council and has just emerged from a heavy round of job losses which has seen a 100-strong workforce halved in two years.
 
HIC director Angus Houston told EN he plans to focus on securing more corporate meetings business and will outsource more of the venue’s services in order to balance the books and continue to deliver £100m to the wider economy each year. Tenders are already out for outsourcing certain services and staff have been informed openly about all plans and possibilities going forward.
 
“A big transition has been undertaken,” Houston said. He pointed out the HIC did not have a big metropolitan council to fund it, but a district council which itself was facing an 11 per cent fall in government funding over the next 12 months. The Government’s grant to Harrogate District Council fell by 16 per cent in this financial year, leading to an overall £2.7m shortfall.
 
The HIC has also seen a drop in the number of events from 77 in 2010/11 to 64 in the current financial year and expects 54 to be staged at the venue during 2012/13. Continued support for the Royal Hall and investment there has placed a cumulative strain on the budget.
 
Houston did not rule out “ring-fencing” different parts of the HIC business in future.
 
“The old exhibition market had changed,” he continued. “However, there is life in the market yet.”
 
On a more positive note, Houston said the modern £12m hall extension at HIC had opened up new event opportunities and confirmed the venue has booked in itssixth event contract in recent months. He highlighted the more lucrative corporate meetings sector as a key part of his strategy for pulling through the economic downturn.
 
The HIC also has the full backing of the Council, which is to stage a wide-ranging marketing campaign over the next year in a bid to attract more events.
 
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