ATG introduces ticket levies for theatres

Published Thursday 14 December 2006 at 16:10 by Nuala Calvi

Ambassador Theatre Group has become the second major UK theatre owner to introduce ticket levies to pay for the upkeep of its venues, following in the footsteps of Delfont Mackintosh and paving the way for other commercial companies to turn to audiences for help maintaining their historic buildings.

A £1 surcharge is being added to tickets at Theatre Royal Brighton, New Wimbledon Theatre and Richmond Theatre - three of the oldest venues in ATG’s collection and all in need of refurbishment.

The move is regarded with some cynicism within the industry, with commentators pointing out that ATG has not spent the vast sums that theatre impresario Cameron Mackintosh has on his West End portfolio, which is benefiting from a £35 million cash injection in return for a 75p ticket levy.

London theatre producers complained that other commercial companies introducing levies would need to prove that they were not doing so purely to sell them on at a higher price.

One independent producer, who did not want to be named, said: “There is a little bit more scepticism as it’s seen as a way to add value to the buildings. If they bought the buildings then they did that knowing what state they were in, so it’s their own issue to resolve.”

However, ATG insists it has invested £15 million across its 24 venues, including £2 million on Brighton, Wimbledon and Richmond combined and will continue to invest in the upkeep of its buildings.

David Blyth, ATG operations director, said: “In line with a number of operators in the industry, we have introduced the restoration levy to assist with raising much needed funds for refurbishment work to preserve our vital theatre heritage for many generations to come.

“These magnificent buildings need regular maintenance and we will be reviewing the need for ongoing restoration work across the group in the future.”

Ticket levies have long been a feature in New York, where a Theatre Restoration Fee of $1.25 is imposed by most Broadway and several major Off-Broadway venues. They are also charged by certain subsidised venues in the UK, such as Belfast Grand Opera House, which operates a 7.5% “development donation”, and Norwich Theatre Royal, which puts £1 a ticket from certain shows towards its refurbishment fund.

Delfont Mackintosh chief executive Richard Johnston told The Stage that commercial theatre operators needed to find ways of raising the £250 million recently identified by the Act Now report as necessary to sustain London’s ageing theatre stock.

“I think in all probability [levies] are a way of raising part of that bill,” he said. “The public understands these are old buildings and because in many cases they are listed, they are expensive to maintain.

“But there will need to be some form of government help for those theatres which aren’t able to invest the sort of money we’ve been able to invest.”