Great Tapestry's COVID-induced financial deficit

EXCLUSIVE by LESTER CROSS

Scotland's latest five-star visitor attraction sustained financial losses averaging around £6,000 per month following its opening in a £6.7 million custom-built gallery, jointly funded by the Scottish Government and Scottish Borders Council.

In the week when a study by Aberdeen University found the Galashiels-based Great Tapestry of Scotland had "improved public perception of the historic Borders town", it has also been revealed that Live Borders, the trust which runs the tapestry centre, experienced a £48,500 loss between the gallery's opening in August 2021 and the end of the financial year in March 2022.

The figure was provided in response to a Freedom of Information [FOI] request asking for information about the size of the deficit resulting from disappointing visitor numbers attributed to the COVID-19 pandemic.

According to one of several business cases produced prior to the project's development a total of 51,000 paying customers were expected to attend the gallery in the first twelve months to view the 160 hand-stitched panels depicting Scotland through the ages. But it was confirmed in December that only 24,000 tickets were sold during the initial year of operation.

The losses over those first eight months are markedly different to the forecasts made by consultants commissioned by Scottish Borders Council, and by Live Borders themselves.

One version of the business case warned of the revenue implications with projected deficits in each of the first five years after opening, ranging from £79,600 in year one to £21,500 in year five.

However, a Live Borders operational model predicted a loss of just £2,000 in year one with surpluses in each pursuing year of between £23,700 in year two and £65,600 in year three.

A report presented to members of Scottish Borders Council stated: "The council agrees to initially underwrite any shortfall in the revenue budget for the project until the estimated shortfall is filled by the opportunities mentioned above.

"The council has confidence in the success of the additional income generation opportunities to obtain at least a cost neutral position for the facility. However, the authority will ultimately fill any remaining funding gaps."

Elected councillors were also assured "Value for money is addressed at all stages of the project design and procurement process, and in the Economic Impact Assessment".

The FOI request to Live Borders asked: "What was the shortfall in the revenue budget for those first 12 months and how much has Scottish Borders Council underwritten to bridge the gap?"

In their response the attraction's operators stated: "The financial reporting period for Live Borders, and therefore the Great Tapestry for Scotland (GTOS), is April to March. The operating deficit for the period August 2021 (when the Tapestry opened) to March 2022 was £48.5k. 

"Live Borders absorbed this amount into its overall operating deficit of £1,087.7k for the year ending 31 March 2022 as Scottish Borders Council had provided funding to support GTOS prior to opening as well as significant additional support to Live Borders during COVID. Scottish Borders Council support for GTOS for the financial year ending 31 March 2023 remains under discussion as we are part way through the financial year."

The newly published study led by the University of Aberdeen's SPOT (Social and Innovative Platform on Cultural Tourism) Team found that the tapestry centre was the key reason why 60% of holidaymakers interviewed visited the area.

The Aberdeen SPOT survey of 460 tapestry centre customers also found:

“Visitor satisfaction at the Great Tapestry of Scotland was overwhelmingly positive, with 74.5% of visitors stating that their visit to the Great Tapestry of Scotland made them feel more positive towards Galashiels. And for 58.2% of those visiting the area on holiday, the purpose of their visit on the day of the survey was to visit The Great Tapestry of Scotland."

A lengthy press statement from the university team includes statements from a number of stakeholders in the Great Tapestry of Scotland project with a claim the gallery has been welcomed by retailers in Galashiels, who have reported a noticeable increase in footfall since the Tapestry first opened. 

Mike Gray, chair of Energise Galashiels Trust, said: “It’s brilliant to see the hugely positive impact that the Great Tapestry of Scotland and our associated Energise Galashiels Trust regeneration initiatives, which are funded by South of Scotland Enterprise and Scottish Borders Council, are delivering in our town centre.

“The results from the University of Aberdeen’s study reinforce what we’re seeing on the ground. There really is a renewed positivity about Galashiels with many businesses reporting increased footfall from those who have come to see our town’s new five-star visitor attraction.”