Better oversight planned for flailing Tākina

Tuesday, 26 November 2024

Tākina has struggled to be commercially viable.

A new business unit to manage ongoing financial issues at Wellington’s new convention centre, less than 18 months after it opened, is on the cards.

Under the current operating model, Te Papa runs the business side of Tākina (its operating costs and revenue-related activities) while the council covers the building costs.

However the $180 million convention centre has struggled to achieve targets set out in its business case since opening in June 2023, with its first two major exhibitions failing to break even or reach their target visitor numbers and lower revenue expected over the coming years.

A review in June this year found that while “the difficult macro environment” had been the main reason behind the lower than forecast returns, there were areas within the current operations that if addressed and improved could deliver better financial outcomes.

A Lego exhibition was the the first event to open at Tākina.

Council officers are now recommending a new business unit be established within WellingtonNZ to haul the centre out of its financial slump.

A report to the council’s social, cultural and economic committee notes the existing structure doesn’t have adequate oversight, there is no one leader charged with oversight, there are several areas where roles and responsibilities are unclear, and it is too operationally focused.

“Marketing and branding, media and communications, digital properties, non-convention commercial revenues, strategic planning, relationships with Mana Whenua, and attraction and management of exhibitions need to be centrally coordinated and managed with a commercial lens,“ the paper says.

The new business unit would take a lead role in driving those areas, under the management of a new general manager, while also working alongside Te Papa to make improvements to the centre’s operational performance.

Building management, asset management planning and health and safety monitoring were expected to remain with the council.

Te Papa spokesperson Kate Camp said Te Papa recognised the importance of working together to find ways to make the convention centre sustainable.

“We are satisfied that the convention business that we manage at Tākina has been performing well, while acknowledging the challenging environment that has emerged since the original pre-Covid business case.

“The report does not recommend substantial changes to the agreement with Te Papa, but provides a good basis for our ongoing work, alongside Wellington City Council, WellingtonNZ and stakeholders, to ensure Tākina is as successful as possible for Wellington.”

The current relationship management group would also be disestablished, and a new performance management group would be set up to provide strategic oversight and guidance. It will be administered by the council controlled organisation team within WCC.

For at least the first 12 months of the new arrangements the CEs of WCC, Te Papa and WellingtonNZ would meet quarterly to check in on progress and to ensure each organisation’s objectives were being met.