A multi-million-pound programme to modernise Harrogate Convention Centre is under way, designed to help the venue realise its potential and drive growth in the local economy.

Business leaders in the spa town have welcomed the start of construction, describing the convention centre as pivotal to Harrogate’s prosperity and a draw for hundreds of thousands of delegates each year.

Delegates make a significant contribution to the town’s tourism industry, which is valued at £483.4 million annually and attracts 3.1 million visitors.

North Yorkshire Council's £9.4 million scheme to deliver larger breakout rooms in Studio Two has begun to keep the venue competitive in a crowded conference market.

Additional refresh projects are also progressing to give the 1980s complex a more contemporary feel, including replacing ageing cooling systems and installing new carpets and timber wall finishes.

Council leader, Cllr Carl Les, said: "The Harrogate Convention Centre has been such an important asset to the region since it opened more than 40 years ago.

"However, we recognise that the building needs to be modernised to make sure that it can continue to compete alongside its rivals in the conferencing sector.

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"The overhaul of Studio Two is at the heart of this programme to upgrade the convention centre, but there is also a whole package of other works which will make a real difference.

"We are committed to making sure that the very best facilities possible are provided at the convention centre to help to boost the economy of not just Harrogate, but the whole of North Yorkshire as well."

The revamped Studio Two will add breakout capacity for around 1,200 delegates and is projected to generate more than £1.5 million a year by the tenth year. The investment, expected to total about £9.4 million once designs are finalised, is forecast to be repaid within a decade through additional revenue.

Galliford Try has been appointed as contractor for the Studio Two upgrade, with completion anticipated in the spring of next year.

Last month, the convention centre was named Venue of the Year (under 20,000 square metres of event space) at the Association of Event Organisers’ Excellence Awards, often dubbed the Oscars of the events industry.

The Harrogate District Chamber of Commerce’s chief executive, Martin Mann, said: "The Harrogate Convention Centre has been part of the foundations of North Yorkshire's economy for more than 40 years.

"The work that the council is undertaking at the centre is vital to ensuring its long-term future, and the commitment to the venue is very welcome.

"We would like to see this project re-energise the conversation regionally, to facilitate further investment that boosts both the convention centre's attractiveness nationally as a 'go-to' venue, and the employment and revenue it brings to the Harrogate area.

"Harrogate Chamber is also hopeful that the investment and the improvements to the convention centre will allow its staff to engage even more effectively with local businesses and bring a greater number of delegates to the town to see all that we have to offer."

Recent energy-efficiency upgrades have already cut annual electricity costs by almost £150,000. New controls and equipment ensure systems only operate when required, reducing consumption and peak demand, while timed event scheduling, more efficient pumps and improved air conditioning have modernised operations and enhanced sustainability. Further electrical efficiency measures are being explored.