LONDON - It may be remembered as one of the most unfortunate remarks in the British Millennium Dome's short and troubled history. Seven days after the Year 2000 showcase event opened amid scenes of chaos, the Dome's operators insisted that "record numbers of people have been snapping up tickets."
Jennie Page, its then chief executive, was even bolder. Demand for tickets was exceeding expectations. "We are on course to meet, if not exceed, our target of 12 million paying visitors in 2000."
Nearly five months on, those earnest predictions have proven groundless. Far from attracting one million paying visitors a month, in its best month so far, April, only 546,657 people paid to enter. This week, after a string of poor weeks, it emerged that only 7 million paying visitors are now expected.
Now Bob Ayling, the chairman of the New Millennium Experience Company, which runs the sterling 758 million Dome, has resigned as part of a deal which will see the Millennium Commission injecting an extra sterling 29 million into the project.
These are humbling times for an event originally trumpeted by Prime Minister Tony Blair as a "symbol of Britain's creativity and imagination."
Page's optimistic predictions in January were part of a concerted effort by the NMEC to counter a torrent of damaging criticism of the event's first few days. The gala opening, attended by the Queen and the Prime Minister, was shambolic, with 3000 of the 25,000 guests left queuing at Stratford station, east London, for tickets as the event began, widespread criticism of the artistic quality of the show and scuffles breaking out as people struggled for their free glass of champagne.
On the opening weekend, teething problems with the attractions and long queues inside the Dome left the first visitors frustrated and bored. The sponsors which had put up a British record of sterling 160 million in sponsorship, were furious and demanded urgent action. Page's optimism ebbed away, and then, in early February, came the first signs of the financial crisis.
After poor ticket sales and contractual wrangles which delayed payments from sponsors, NMEC asked the Millennium Commission for its first loan of sterling 30 million to cover short-term "cashflow problems." Roughly sterling 27 million more was given several weeks later, apparently because NMEC had proven it was efficient enough to deserve it. Then, after official figures revealed that only 364,370 paying visitors crossed the Dome's threshold during January, came the first cut in visitor estimates. In an attempt to dampen expectations about the project's eventual success, Liam Kane, then NMEC's managing director, claimed it only needed 10 million paying visitors to break even.
Despite signs that even that figure might be optimistic, Kane, who left the company last month after seeing out his contract, also predicted there would be a surge in visitor numbers in November and December, as people rushed to see the Dome before it closed. There was more to come. The evening before, Page had been sacked by Ayling in a purge intended to satisfy anxious sponsors. She was replaced by a little known former Disney executive hired for sterling 100,000, Pierre Yves Gerbeau, who quickly found two further executives to sacrifice: its operations director, Ken Robinson, resigned, and Gez Sagar, its head of communications, was moved sideways.
These events put the Dome's finances under close scrutiny, and have raised even more questions about the oversight of the Dome's operations which has led to the decision to give NMEC another sterling 29 million, bringing the total now loaned to the Dome to nearly sterling 140 million.
Its sterling 758 million costs were originally to be met by sterling 443 million of lottery funds from the commission, of which sterling 50 million would be repaid from Dome profits; sterling 160 million in commercial sponsorship and roughly sterling 194 million in revenues from ticket sales, retailing and in merchandising.
After a string of unconvincing ticket sales figures, the sums are now very different. It appears the Dome will cost nearer sterling 850 million, and close heavily in debt. It also leaves the commission nearly sterling 140 million out of pocket, from a total budget of sterling 2 billion it has to spend on worthy projects.
These problems also thrust to centre stage the competition to buy the site. The two companies now in the final round of bidding, Legacy Plc and Dome Europe, could cut that debt quickly by paying part or all of the purchase price, which could exceed sterling 100 million, up front.
Theories about the Dome's failure to meet expectations are numerous. Cultural critics have long attacked the quality of the exhibits, claiming it is insufficiently excellent to attract 12 million people, despite the very high satisfaction rates recorded in polls of visitors. Others point to disinterest in Scotland and northern England, a claim countered by one poll showing 12 per cent of visitors in April were from Scotland. Then came Blair's decision to invite one million schoolchildren in for free - a gimmick some critics believe meant that many families dropped their plans to pay to go.
The Commons select committee on culture, media and sport also warned last year that the damaging effect of banning cars at the Dome was worsened by poor public transport planning, and the negative publicity surrounding the delays in building the Jubilee underground line, and long delays in designing packages for the travel trade.
- INDEPENDENT
Dome fails to live up to high expectations
AdvertisementAdvertise with NZME.