1.33 Once opened the museum won a number of national and international awards and its ratings for visitor experience, as awarded by its visitors, were high. However RAI's business plan in August 1993 had forecast operating revenues of £6.8 million in 1996, rising to £12.4 million in 2000, with annual profits increasing in the same period from £1 million to £2.6 million. In fact once the museum opened, RAI's trading activities at the Leeds site were not sufficient to cover its costs and service its debt, with operational revenues considerably below target. Consequently RAI made increasing annual losses. In early 1999 these were forecast to reach cumulatively almost £10 million by 31 December 1999 (Figure 9).
1.34 RAI faced other difficulties in the operation of the museum. RAI had intended that it would simply be a financial vehicle for the project and would contract the operation of the museum to one of its equity investors, Gardner Merchant. However at the end of 1996 Gardner Merchant withdrew from the operating contract by mutual agreement. RAI consequently accepted 200 of Gardner Merchant's staff on their previous terms and conditions and took on the role of operator as well as joint venture partner.