The Stage

Drop in tourism blamed for Globe’s £1m loss

Published Tuesday 16 March 2004 at 14:35 by Sally Bramley

The Shakespeare Globe Theatre Trust made a loss of almost £1 million in 2003 - its first significant deficit since it opened - despite cutting marketing and administration budgets by more than £100,000 and being in profit 12 months previously.

A drop in tourist numbers and use of the venue’s corporate facilities, as well as planned increases in expenditure, were blamed in the theatre trust’s annual report.

In the document, finance director Graeme Wallace said: “The [Globe] has experienced a difficult trading environment over the last 12 months. Continued geopolitical instability was reflected in the marginal downturn in tourist visitors to the centre and the exhibition, while the adverse economic conditions affected corporate hospitality, facilities hire and sponsorship income.

“On the performing side, while the three Shakespeare plays in an ambitious five production season held up at budgeted box office levels, the Marlowe productions proved less of a draw, resulting in the overall financial return for the season being marginally down in revenue terms.”

The cost of maintaining the venue increased by a third, raising the overall operating expenditure from a little more than £7 million last year to more than £8 million this year.

Despite the loss, income from the theatre and exhibition tickets, educational services and tours increased by almost £100,000. However, partnership funding, which includes donations to the trust, dropped by £30,000 to £554,301.

General director Peter Kyle said that new cost control measures had been brought in with the aim of delivering a small budgeted surplus for the 2004 season.

He added: “In the first quarter of this financial year the exhibition is meeting its admissions target, Globe Education workshop bookings are running at around one and half times the budget, merchandise revenue is ahead of budget with events and facilities hire bookings already half way to the target for the year.

“On the first day of public booking the box office broke all records, taking £62,500. The advance for the 2004 theatre season hit the million pound mark a full month sooner than it has done in the past. In the light of these encouraging figures we are confident of meeting and indeed exceeding the surplus targets set.”