New leisure centre not expected to make money for first two years

Nicholas Thomas – Local democracy reporter

A new leisure centre is not expected to make any money in the first two years in business, until enough people have signed up for memberships.

The Newport centre, which will be built on a site next to the University of South Wales campus in Usk Way, will include a leisure pool, lazy river, slides, changing rooms, a fitness suite, cafe, and “large active space for community use”.

Cllr Matthew Evans, who leads the Conservative opposition group in the city council chamber, has sought assurances the project’s costs won’t “run out of control”.

‘Heat’

He said his party “welcomes the concept” of the new leisure centre, but noted the council had “recently allocated another £600,000 to support the scheme before the foundations have even been laid”.

Given recent changes to National Insurance contributions, announced by the UK Government, Cllr Evans said he feared businesses would “feel the heat”.

“What guarantees can you give us that costs won’t continue to escalate?” he asked the city council leader at a meeting this week.

“When it does finally open will you expect the centre to make money?” he added.

Cllr Dimitri Batrouni, who leads Newport City Council, said the project’s budget includes “contingency” funding “for events such as this”.

“It’s common practice within the industry, to build in contingency just in case of budgets, or cost hikes, or pandemics or anything like that,” Cllr Batrouni said.

“Hopefully [that] will cover any costs – if there are any. I haven’t heard that, but if that happens we have some contingency.”

Membership

Addressing the question of profitability, he added: “The centre will not make money in the first two years, as we build up the membership.

“But we expect it in year three and four [that the new centre is open].

“We need to build up the membership – like any other business, it takes time.”

The council announced the extra £600,000 funding for the project in the hope the cash injection will bring forward the construction phase – which is estimated to take around 18 months to complete.

More than half of the total funding for the project comes from external funding, including Welsh Government grants and the UK Government’s Shared Prosperity Fund.

Speaking at the time the council’s extra funding was confirmed, Cllr Batrouni said: “Newport is the fastest growing city in Wales and we know from surveys and conversations with our residents that they’re looking forward to the new leisure facility.

“We see this new centre as a space for communities, for wellbeing and for young people to enjoy themselves in a safe, fun environment.”