Persistent delays and escalating costs associated with Southport’s £73 million Marine Lake Events Centre (MLEC) project are reportedly forcing local hotels out of business. The ambitious regeneration scheme, intended to boost the town’s visitor economy, has been plagued by issues, including the termination of multiple construction agreements, leading to significant uncertainty and financial strain for the hospitality sector.
Key takeaways
- Hoteliers are struggling due to prolonged delays in the MLEC project.
- Some hotels are being forced to sell or seek alternative revenue streams, such as housing homeless individuals.
- Concerns are rising about the impact on Southport’s ability to host major events and conferences.
- The project has seen multiple contractor terminations and is facing potential cost overruns.
Project setbacks impact local businesses
The MLEC development, a cornerstone of Southport’s regeneration efforts, has encountered significant hurdles since the demolition of the former Southport Theatre and Convention Centre began 16 months ago. The project, funded by a £37.5m Town Deal and £17.7m from the Liverpool City Region Combined Authority, has seen its pre-construction agreements with Graham Construction and Kier Group terminated. While VINCI Construction has now been appointed as the preferred contractor, a final price and completion date remain unconfirmed.
This prolonged uncertainty is taking a severe toll on the town’s hoteliers. Councillor John Pugh highlighted that many smaller hotels, operating on tight margins, cannot afford to wait for the project’s completion. "Smaller hotels live from year to year and don’t have the funds to patiently await the new dawn," he stated. Some hoteliers have resorted to selling their businesses, while others have entered into agreements with the council to provide accommodation for homeless people, a move that detracts from their primary function of serving tourists and conference attendees.
Concerns over future competitiveness
With Southport preparing to host major events like the Open Golf championship, the reduction in hotel bed spaces is a growing concern. Councillor Pugh fears that the town’s capacity to compete in the ‘conference and events premier league’ is being undermined by the delays. He noted that the original plan to boost the hotel offer through the new events centre has, ironically, had the opposite effect due to the extended timeline.
Furthermore, Councillor Pugh expressed skepticism about the project’s budget, suggesting that the final cost will likely exceed the initial £73 million estimate. He criticized the lack of transparency surrounding the regeneration schemes, contrasting the optimistic council press releases with the harsh realities faced by local businesses.
Council defends progress
Sefton Council leader, Councillor Marion Atkinson, defended the council’s handling of the MLEC project. She emphasized the council’s commitment to securing best value for public money and stated that the business case for the MLEC remains strong. "Our commitment to that project has never wavered, but our focus has always been on securing best value from public money, and we have not been afraid to change contractor if required to achieve these objectives," she commented.
Councillor Atkinson urged Councillor Pugh to be more supportive of Southport’s future, stating, "These are exciting times for Southport, and Cllr Pugh should be celebrating this rather than continuing to talk down our town and its future." The council remains focused on commencing the main construction contract this year, aiming to revitalize Southport’s visitor economy.
