New survey paints a grim picture for future of U.S. museums

Group finds many may not be able to rebound from dire financial strain

LOS ANGELES—Eight months into the pandemic, the American Alliance of Museums released its second survey exploring the consequences of COVID-19, and predictions for the future a

Many museums may not be able to rebound from the dire financial strain brought on by months of COVID-19-related closings, according to the nonprofit accreditation and advocacy group based in Washington. Its recent survey of 850 museum directors asked, “Do you believe there is a significant risk of your museum closing permanently in the next 12 months, absent additional financial relief?” In response, 12 per cent of museum directors said yes; 17 per cent said they were not sure and the rest said no.

“It’s having a devastating effect on museums,” AAM president Laura Lott said of the closings. “And it’s not getting any better.”

Admission, along with café and retail sales, are key revenue streams for museums, nearly 30 per cent of which are closed, according to the survey. Museums that have opened during the pandemic are operating at vastly reduced capacities to maintain physical distancing. These museums, on average, are seeing 35 per cent of their typical attendance.

The average loss per institution is about $850,000 (U.S.) through October, the survey found. Directors estimated that their museums will lose about 35 per cent of total 2020 budgeted operating income.

Zoom panel discussions, virtual fundraising galas and other digital events are not evening the score. Revenue from digital events, the survey found, has fallen 34 per cent short of revenue goals for in-person events.

Opening during the pandemic has meant instituting often laborious and costly safety measures, including installing Plexiglas barriers, physical distancing signage and hand-sanitizing stations, as well as implementing new reservation systems and rerouting foot traffic through exhibitions to create one way pathways. The survey found that museums spent an average of about $27,000 to reopen safely. The bigger the museum, the higher the expenditure, upward of $750,000 for some.

Of the museums surveyed, 52 per cent said they had six months or less of financial operating reserves to stay afloat; 82 per cent said they had funds in reserve to cover 12 months or less.

“It’s not a sustainable scenario,” Lott said. “Museums are spending money not just when people are there, but all the time to take care of their facilities, to care for their collections, to provide online services. So they’re spending down their savings every day, every month, even while they’re closed.”

The survey was conducted in mid-October by AAM and the Seattle-based Wilkening Consulting. It included small, midsize and large museums from around the U.S., including art museums, aquariums, historical societies, science museums and botanical gardens.

AAM’s last COVID survey, released in July, found that 44 per cent of museums had laid off or furloughed staff. The new survey found that number had risve

n to 53 per cent. Front-line workers at museums, such as front desk attendees and visitors services staff, have taken the biggest hit, 68 per cent of museums said. Education was the next most impacted area, 40 per cent of museums said, followed by maintenance and security at 29 per cent of museums, and collections staff at 26 per cent.

In a pre-pandemic world, museums were responsible for 726,000 salaried and contracted jobs annually, according to AAM’s 2018 “Museums as Economic Engines” report.