AUSTRALASIA - The ageing Exhibition Park in Canberra has come under further criticism as maintenance costs are blamed for keeping its financial performance in the red.
It is believed the venue will lose at least AU$1m (US$0.99m) for this financial year and Canberra’s government – the majority shareholder - has been warned that without facility investment, the exhibition centre’s long-term viability is in question.
A statement from park management EPIC Corporation claims the venue expects to stay in the red for the next four years, with annual losses not less than AU$900,000.
In the statement EPIC says it will be seeking government funding to finance the facility upgrade crucial to its continued ability to attract events.
EPIC claims to host more than 1.3 million visitors at its events each year and will this year host a record 85 ''major'' events. However management is worried about the effect changing economic conditions might have on the events market.
''A decline in the economic conditions in the market may result in few sales and EPIC's inability to be viable in the long term,'' EPIC said in its statement. ''The declining condition of EPIC's facilities may mean that it is unable to attract significant, high-yield events and therefore suffers a decline in revenue and repeat bookings.''
The park's management said expenses necessary for the management of EPIC contribute to an operating deficit.
”There are expectations of increased levels of capital expenditure over the next five years to ensure the continued upkeep of EPIC's building and facilities to improve the efficiency and appearance of buildings, and to identify the targeted development of new facilities,” a spokesman for EPIC said.
Singapore’s Suntec recently renewed its partnership with the Adelaide Convention Centre (ACC), the first purpose-built convention centre in Australia.
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