Hundertwasser slump
Art centre’s deficit rises as visitor numbers slide
Alack of visitors to the Hundertwasser Arts Centre has stifled its income, seeing it rack up a bigger deficit than planned. The lack of money means the centre will have to draw down $500,000 of contingency funding, a fund also used in the last financial year.
The Hundertwasser Arts Centre and Wairau Māori Art Gallery opened in February 2022 and is run by Whangārei Art Trust, a Whangārei District Council-controlled organisation.
While the centre had welcomed 37,000 visitors by just past its first four months of operation, it has been unable to sustain those high numbers.
There were 19,800 visitors in the last half of 2023 — just over half the numbers seen in the first four months — according to Whangārei Art Trust’s half-year report to the council’s Community Development Committee.
Those low numbers directly impacted admission fees and the sale of goods in the shop, with a half-year loss of $765,000.
In contrast, the Whangārei Art Museum, which is also run by Whangārei Art Trust, had 21,500 visitors in the last half of 2023. It made a profit of $251,000 for the six months, although it receives $657,000 in council funding each year.
The trust budgeted a loss of $656,000 for the two centres for the year ending June 30, 2024.
Trust chairman Bill Shepherd said the Hundertwasser Art Centre has been impacted by international tourist numbers not recovering to pre-Covid levels, as well as the recession and cost of living difficulties.
“People are making spending decisions that don’t include a nice-to-have. Lots of the things that are challenging businesses are challenging us as well.”
Shepherd said the trust is hoping to not have to ask the council for more funding and is pursuing other income streams, like increasing international visitor numbers.
“Our first port of call isn’t to put up our hands to the council — we’re doing our level best to stick by the decisions made when the council decided to support the Hundertwasser Art Centre and the trust as a CCO — but we’re certainly not exempt from the economic times impacting on all businesses.”
Shepherd said the centre will use $500,000 from its contingency fund, the maximum amount payable in a financial year. It also drew down $500,000 in 2022-23 in two separate stages.
The contingency was meant to be a $2 million fund to help cover operational shortfalls over the first 10 years, but it was reduced to $1.25m after Ngātiwai Trust Board’s $750,000 guarantee was dissolved by the council in a confidential meeting in August 2023.
The two years of withdrawals will leave just $250,000 in reserve.
Controls are in place to allow the council to directly monitor the centre’s performance if “significant losses accumulate”, the report said.
Hundertwasser Art Centre director Dr Joost de Bruin said the pinch is being felt across New Zealand, with
Museums Aotearoa starting a campaign on March 12 called Keep the Lights On, calling for sustainable, long-term funding for museums and galleries.
All have been impacted by the recession and the lack of international tourists cause by the pandemic-era border closures, he said.
The impact is worse in Whangārei because of last year’s terrible weather — including Cyclone Gabrielle — and the current closure of State Highway 1 at the Brynderwyns, de Bruin said.
“These are four reasons [for the deficit] that weren’t entirely anticipated.”
But when asked if the council will be required to pick up the slack, de Bruin responded: “There are no other museums and art galleries in New Zealand that run without council support. I haven’t been able to find one.”
“I think that is noteworthy what we are being expected to do here — to have an art museum of this magnitude that’s expected to pay for itself.”
Capturing international tourists key to new revenue
The Hundertwasser Art Centre’s main markets now are Kiwis living south of the Brynderwyns and international visitors, as those in Northland who want to see the centre have probably done so already, Shepherd said.
Its main display is of works by Hundertwasser on loan from the Hundertwasser Foundation in Vienna, which has been expensive to put in place and cannot easily be changed, he said.
One challenge has been to make the most out of the cruise ship visitors docking at Northport, Shepherd said.
The centre was the catalyst for cruise ships to come to Whangārei but it has been extremely difficult to get those organising the excursions to include a Hundertwasser tour, he said.
De Bruin said the length of time it took to get cruise ship operators on board was frustrating but, after a mixed response from cruises this summer, the tours are set up for next summer.
“They’ve got a really outdated image of Whangārei, so we’re talking with them and showing them what Whangārei is all about . . . We’re doing the groundwork now to set up for the years to come.”
Other initiatives include getting more signs on State Highway 1 to direct visitors to the centre and working with KiwiNorth to make Whangārei a destination.
“We’re only two years in — we need more time to these relationships and get this going,” he said.
Hundertwasser Art Centre provides rich learning experience
One growing Hundertwasser Art Centre visitor demographic is local students, with 6800 students taking part in a learning programme since it opened.
De Bruin said letting local children experience the centre and find out about Hundertwasser’s philosophies is an important part of what the centre does.
“To see school groups coming through and having an experience here has been really impressive to me. Lots of the kids here in Northland have challenges in their lives, but you can hear them commenting, ‘It’s a quiet space’, and, ‘I feel relaxed here’ . . . It shows how powerful our school programme is.”
To help reduce the nominal entry fee for its school and public programmes, the centre is holding a series of fundraisers.
The first was held during Art Beat, where half-price entry on the day went to the schools programme. De Bruin said twice as many people came through the doors in comparison to a normal Saturday.
More fundraisers are to come, including a black-tie event being planned for the next couple of months.
The centre also makes use of volunteers, while the trustees from the Whangārei Art Trust are also all volunteers.
We’re only two years in — we need more time to these relationships and get this going.
Hundertwasser Art Centre director Dr Joost de Bruin