The ACT government's Cultural Facilities Corporation has posted a $3.7 million deficit, more than 50 per cent higher than expected, after the COVID-19 pandemic caused the cancellations of theatre productions and exhibitions earlier this year.
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The shortfall could prompt the corporation, which runs the Canberra Theatre Centre, to dip into its $1.2 million theatre reserve next year to boost productions as restrictions ease.
The corporation, which also runs the Canberra Museum and Gallery and manages the ACT government's historic places, said 2019-20 was the most challenging year of its existence.
"The main continuing challenge for the [corporation] remains the variability and unpredictability of the performing arts business, which impacts directly on the [corporation]'s main non-government income source: its theatre related revenues," the corporation said in its annual report.
The report said theatre activity depended on the availability of touring productions, patron confidence in attending venues and discretionary consumer spending.
"Due to its large asset holdings and consequent significant depreciation expense, the [corporation] always expects to incur an operating deficit," the report said.
The report revealed the corporation sourced 49 per cent of its own revenue, while the cost to the ACT government for each estimated visitor or patron was $31.40 against a target of $23.03.
The ACT government granted the corporation an extra $2.5 million earlier this year to help it weather the economic impacts of the pandemic.
Canberra Theatre Centre director Alex Budd, who took on the job in January, said in April that the theatre closure was worth hundreds of thousands of dollars a month in lost ticket-sale revenue.
"We have gone from welcoming thousands and thousands of people a week to not being able to welcome anybody," Mr Budd said at the time.
More than 290,000 people attended the corporation's venues and programs in 2019-20, including 20,000 people who saw West Side Story. The overall attendance was 27 per cent lower than forecast.
The corporation said while COVID-19 was the biggest cause in the attendance drop, bushfire threat, smoke haze and poor air quality had contributed to the decline.
Performance venues at the Canberra Theatre Centre were closed from March 18, while the Canberra Museum and Gallery and historic places, including Lanyon Homestead and Calthorpe's House, were closed on March 24.
The corporation managed nearly $68 million in assets at June 30, including the theatre centre valued at $33 million.
The corporation continued to work on the business case for a new Canberra theatre, the report said.
A feasibility study completed in 2009 found Canberra could sustain the new venue. In June 2018, ARM Architecture won a contract to provide design and technical advice in the development of the business case.
ACT Labor again committed to finalising the business case and design for a new Canberra theatre precinct in the lead up to the territory's election in October.
The new theatre, intended to attract major ballets, musicals and concerts, would seat about 2000 people.
Jasper Lindell
Jasper Lindell joined The Canberra Times in 2018. He is a Legislative Assembly reporter, covering ACT politics and government. He also writes about development, transport, heritage, local history, literature and the arts, as well as contributing to the Times' Panorama magazine. He was previously a Sunday Canberra Times reporter.
Jasper Lindell joined The Canberra Times in 2018. He is a Legislative Assembly reporter, covering ACT politics and government. He also writes about development, transport, heritage, local history, literature and the arts, as well as contributing to the Times' Panorama magazine. He was previously a Sunday Canberra Times reporter.
