Economic impact of museums Kimmo Lev Secretary general

Economic impact of museums Kimmo Levä Secretary general

Economic impact of museums Indirect: - Image: arouse investors’ interest - Good for peoples’ wellbeing - Increase creativity Direct: - Museums make investments and buy local and regional services - Revenue from tourism Vaasan yliopisto | Levón 10. 11. 2020 2

Who took part in the survey?

Who took part in the survey? § Appr. 200 museums all over Finland § Nearly 5500 Finnish museum visitors and 1000 foreign visitors took part in the survey (by filling in a questionnaire)

Who took part in the survey?

Who took part in the survey?

Who took part in the survey?

Who took part in the survey?

What did we study?

Visitors’ spending and motives for traveling

Do museum visitors spend money?

On average, visitors spent 32 -49 euros during a museum visit.

Do they spend this money because of the museum?

How do visitors spend their money?

What were the other findings?

• 15 -25% of the economic effects of museums seem to be provided by foreign visitors. Ø Value of museums’ export is 7090 million euros.

What conclusions can we draw?

A museum is not a cost, it is an investment § Museum visitors’ total impact on the regional economy is about 500 million euros Ø Museums generate more tax revenue for cities than cities provide financing for museums 10. 11. 2020 Vaasan yliopisto | Levón-

A museum is profitable, but not for itself Ø In 2014, the exhibition and marketing costs of museums amounted to 19. 2 million euros, while ticket revenue amounted to 13. 9 million euros Ø Ticket revenue and museum shop sales cover about 9% of museums’ costs Ø Sponsors’ share of museums’ costs is 1% (total market = 1. 3 million euros) Ø Economic impact is possible only because of public funding (covers 80% of all costs) Ø Cuts in public funding of museums also have a strong economic impact on hotels, restaurants, train, bus and taxi companies

We have wealthy customers § We have the opportunity to introduce higher ticket prices and increase sales in our museum shops Ø Museum visitors have money to spend

We need a new way of thinking and operating Ø In the era of the creative economy, museums are an investment Ø Museums have a role in keeping the local, regional and national economy running Ø In addition to cultural politics, museums are part of economic politics Ø When public funding decreases, it has a direct effect on exhibition services Ø The private business sector needs to contribute towards the financing of museums to safeguard its own success

§ Copy of report in English: http: //www. museoliitto. fi/doc/Economic_impa ct_of_museums. pdf 10. 11. 2020 Vaasan yliopisto | Levón- 26

MUSEUMS DO HAVE A POSITIVE ECONOMIC IMPACT ON THE COMMUNITY, BUT DO NOT BENEFIT FROM THIS AS MUCH AS THEY SHOULD. Kimmo Levä Secretary General Finnish Museums Association kimmo. leva@museoliitto. fi +358 40 1662816