1.46 Co-operation between the Armouries and RAI was essential to the success of the project. There were a number of significant areas where income generation by RAI required the Armouries' co-operation (Figure 10). The details of such matters where co-operation was required, such as income generation, was to be provided by the operating specification. This specification was to set down the agreed standards by which RAI would market the new museum. It would detail the Armouries' requirements on the display of the collection, the promotion and marketing of the museum, merchandising, and the admissions policy. Although the specification was to be agreed before the new museum opened, it never was (as explained at paragraph 1.29).
1.47 In the face of its financial difficulties RAI attempted to boost its income. For example, it mounted a programme of commercial exhibitions, holding four such exhibitions in two years and thus increasing its income in this area to almost £500,000 in 1998, six times RAI's original forecast. RAI was also successful in increasing the income from corporate hospitality to £1.3 million in 1998, sixty per cent more than forecast and almost the same amount as raised from admissions (paragraph 1.35). RAI also increased ticket prices.
10 |
| Income generation |
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| The Royal Armouries and RAI had to co-operate in a number of areas of income generation ■ The Royal Armouries decided, in consultation with RAI, what items from the collection were to be displayed and how ■ The Royal Armouries could loan items of the collection to other institutions, after consulting with RAI ■ Promotion and marketing were to be undertaken and financed on a jointly agreed basis ■ RAI were to find sponsorship for the new museum in consultation with the Royal Armouries ■ RAI were to take the lead in any future joint business opportunity but this opportunity had to be in accordance with the Royal Armouries' statutory duties Source: 1993 contract |
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1.48 Various tensions arose between the Armouries and RAI over the operation of the museum, particularly RAI's attempts to boost its income. Disagreement included the level of payment RAI should make for the services provided by the Armouries and vice versa; the emphasis given to corporate hospitality by RAI; ticket pricing policy; the approach to marketing the museum; and control over the use of the exhibition hall and the appropriateness of the exhibitions held by RAI.