Ructions over Claudelands ‘rival’
Plans by Waikato University to host major events at its campus could undermine the bottom line of Hamilton’s showpiece conference centre.
Waikato University has unveiled plans for a multimillion-dollar development at its Hamilton campus.
The complex, dubbed The Pa¯ , will be able to host events and conferences catering for up to 900 people.
It’s expected the majority of the university’s graduation ceremonies currently held at the Claudelands Events Centre will be shifted to The Pa¯ .
City councillor Garry Mallett said the council should be concerned at the impact The Pa¯ will have on Claudelands’ revenue streams.
Claudelands already operates in a crowded market place, with new conference facilities opening up around the country.
‘‘I think this is another example of New Zealand Incorporated over-capitalising,’’ Mallett said.
‘‘Claudelands is a great facility but there are many other great facilities around the region. In Hamilton, and New Zealand generally, we have over-capitalised in terms of facilities.’’
Claudelands attracted 321,469 visitors during the 2017/18 financial year, up from 170,034 in 2015/16.
Earthworks for The Pa¯ are scheduled to start in October. The building itself will take 18 months to two years to complete and is expected to cost $70m – $90m.
The two-level complex will also feature a marae, shops and cafes, learning spaces for students, and an upstairs restaurant.
Hamilton City Council’s Venues, Tourism, and Major Events general manager Sean Murray said not having graduation ceremonies at Claudelands will impact the venue’s bottom line but could also open up new opportunities.
‘‘There’s a number of occasions throughout the year when we’re having to turn business away from Claudelands because we’re overbooked or already booked,’’ Murray said.
‘‘I would have a degree of confidence that if the university did move some of its business from us, that will simply present us the opportunity to offer those spaces at the same time to another customer.’’
Hamilton Mayor Andrew King says the university’s decision to invest $70m to $90m into a campus upgrade was a vote of confidence in the city.
The Pa¯ will attract a lot of use from the university and complement Claudelands rather than detract from it, he said. ‘‘The university’s new facility will open the door to more choice for people, so I see it as a positive.’’
Cr Paula Southgate said the university is a natural option for a lot of conferences and learning activities but Claudelands staff are doing an excellent job at attracting business.
Any good business development growth in the city should be welcomed, she said.
‘‘My understanding is one of the hold backs for Claudelands being used to its full capacity is the lack of enough accommodation in the city,’’ Southgate said.
‘‘Claudelands has had to say no to some events because there is just not enough hotel beds in the city. The big issue is how are we going to get a new hotel underway because we really need a new hotel.’’
Cr Rob Pascoe said there is an oversupply of conference facilities and expects The Pa¯ to compete with Claudelands for some events.
The redevelopment of Claudelands was completed in 2011 at a cost of $68.4m.
‘‘Claudelands is a legacy for this council. If Claudelands had come to the council since the time I’ve been on council, it would have struggled, I think, to put a proper business case up,’’ Pascoe said.
Since its reopening, Claudelands has notched up yearly operating deficits.
In 2014, Claudelands won the Supreme Venue of the Year Award and the Large Venue of the Year category at the Entertainment Venues Association of New Zealand Awards. Waikato University Vice-Chancellor Professor Neil Quigley said The Pa¯ will be funded through a mix of cash reserves and external borrowing.